Seeing More For Less-Ultimate Guide to Explore Madrid on a Budget

Madrid On A Budget

Madrid, the vibrant capital of Spain and its largest city. I have lived in Madrid for almost ten years and really know how to travel Madrid on a budget. When I first moved here, I took the first job I could, and for the first year I was just surviving. So I walked a lot to save on transport, always took a different route to get a change of scenery.

In the process, I walked down pretty much every street in central Madrid and got to know the city extremely well. I can tell you where to get the best calamari sandwich, where the Tapa’s are the best, even what roads to take to keep you in the shade when out and about. I really do love Madrid, and enjoy sharing all this information with you all.

The energy and vibes are constant in Madrid. You have word class food, amazing architecture, museums with some of the finest art pieces in the world and night life that carries on to the early hours and more. Madrid is one of the best cities you can visit in Europe with many of us coming and never leaving.

Like most of the big cities, Madrid comes alive at night. Dinner is typically enjoyed around 9pm or 10pm (I’m English so 7.30 for me), and the partying doesn’t start until several hours after that which takes some getting used to. It’s a city for night owls for sure, and I have been on many a twilight walk through the city.

Although Madrid is a large city, its numerous neighborhoods in the center are perfect for getting lost in. My favorite area to do this is in the Lavapies-Embajadores neighborhood. They have the classic thin cobbled streets, colorful buildings and a bar on every corner of course.
Indulging in tapas, and sipping sangria, taking a seat on a bench in one of the numerous parks in Madrid. The warmth of the locals and the leisurely pace of meals will keep you out late most evenings, giving you a real feel of the city’s rhythm. By embracing the late (and long) meals and the late-night revelry, you’ll have a much deeper and more enriching visit.

This Madrid travel guide will give you all the information you need to know to savor delicious food, save money, and explore the city’s best attractions!

How to see Madrid on a budget

Take a walk around Plaza Mayor:

Plaza Mayor, Madrid’s main square dating back to the 15th century, is a must-visit. While you are here, you have to get a Calamari Sandwich from La Campana, check out the old Bakers that is now the main tourist office and take a walk down the ¨Arco de Cuchilleros¨ to see some centuries old restaurants.

The oldest registered restaurant in the world can be found here, ¨El Botin¨, a hangout of Ernest Hemingway.

If you want to have a drink on the then feel free to sit at one of the many terraces. It’s an odd feeling to think of all the history that took place in the square while you sit there and take in the sun, but they are pricey so be warned.

Expect to pay quite a premium for the drinks and food at these bars. I would take a walk a couple of streets over for a more reasonable price. The food is better in the surrounding restaurants than in the square itself. We always found the Paella a bit bland, and the food rushed so not so much attention to flavor.

Visit the Prado Museum:

The Prado Museum (Museo Nacional del Prado) is one of the world’s greatest art galleries and the main art museum in Spain. With around 20,000 works by European masters such as Rembrandt, Caravaggio, Bernini, Monet, and many others.

Admission is free after 6pm most days but always check this before going. General admission is around €15 euros but worth every single penny. My absolute favorite painting in the Prado is ¨Las Meninas¨, a Painting by Diego Velázquez

El Retiro Park to take a load off:

Officially known as The Buen Retiro Park, this vast park is the green heart of Madrid and used to belong to a Royal, who gave it to the city. It really is a perfect place to relax for a while, get some shade away from the heat if you are here in the summer.

The park has so many things to see and do. Theres the glass palace (an oven in the summer), the lake with boats you can hire, the path leading up to the lake with all the hand carved statues of famous names from Spain’s history.

There’s puppet shows for kids in the summer, plenty of bars around the lake, a must go when you are in Madrid.

You can hire a bike or a scooter and zip round the park. Me and the kids love coming here on bikes in the winter but opt for renting an electric scooter in the summer as it is far too hot to be walking or pedaling.

Visit the Palacio Real:

The Palacio Real is the official residence of the King of Spain but is now primarily used for state ceremonies. It is the largest functioning palace in Europe, it has over 3,400 rooms (imagine dusting that).

Built in the 18th century on the site of a former 9th-century Muslim fort, the palace has a very ornate interior and even has works of art by Caravaggio, Juan de Flandes, and Francisco Goya, it is a museum in itself.

Admission for self-guided tours is 12 EUR, while guided tours cost 16 EUR and above. Audio guides are available for 5 EUR but you can pretty much find one of these for free online. We are trying to travel Madrid on a budget after all.

Go on a food tour:

We all have to eat, and you are going to be thirsty after all the walking. A food tour is a really good way to see some of the nightlife, meet some new people and socialize. I would advise you take one of the many Tapas tours in Madrid. This way, you get to visit several bars, sample different types of tapas and have a sociable evening with people from all different parts of the world.

Additional Things to See and Do in Madrid

It’s not easy to revise Madrid down to a few sites, there is just far too much to see. But, time is a factor when you are on holiday, so I will include some additional things you can do when traveling Madrid on a budget and still enjoy the best the city has to offer.

Take a free walking tour: Yes, something you can do for free in Madrid, walk with a guide. Discover Madrid’s hidden gems and learn about its history with the help of local guides on free walking tours. These tours offer a great introduction to the city and its culture while allowing you to connect with fellow travelers.

Check out the Rastro: Madrid’s famous market full of artisans, second hand, vintage gear and much more. If you find yourself here on a Sunday, get yourself down to Lavapies and experience all the hustle and bustle of the locals and tourists. Get yourself an original gift from Madrid to take back home. Bring an umbrella if its summer, there’s no shade.

See a Flamenco show in Madrid: You can’t really come to Madrid and not see a Flamenco show. I love Flamenco, I really enjoy the passion the dancers have, the atmosphere of the live music and the faces on people that experience it for the first time. It’s a great way to spend a couple hours in the evening. Take your friends, your kids, they are suitable for everyone.

Visit museums: Expand your knowledge of Madrid’s history and art by exploring its many museums. The National Archaeological Museum is right by Plaza de Colon, close to the Prado Museum. A lot of the main museums are along the same main road, the Paseo del Prado. You could see most of them in a day, but it would be quite a rush.

The Naval Museum of Madrid is pretty cool too. We walked past it for years and never went in until recently. They have the masts and insignias from some of their famous ships, and a really cool room that is a replica of what the captains room would have looked like in one of those old wooden ships.

Then you have the Museo Nacional Centro de Arte Reina Sofía, which focuses on modern art, the National Library, the Thyssen. You won’t be short for choice if art is what you want to see.

Explore local markets: Check out the Mercado de San Miguel right by Plaza Mayor, where you can sample local delicacies and shop for fresh produce, wines, and souvenirs. Then you have the Mercado de San Anton in Chueca, San Fernando Market in Embajadores, Anton Martin Market. All of these markets are in historic buildings and have great food and treats.

Discover historical sites: Madrid is steeped in history, and there are plenty historical sites worth exploring. Visit the Temple of Debod, an ancient Egyptian temple gifted to Spain, the Monasterio de las Descalzas Reales, the Almudena Catherdral. You can also visit the homes of great writers such as Lope de Vega and Miguel Cervantes.

Learn a little Spanish: Madrid is an ideal place to brush up on your Spanish. Consider enrolling in a language course or attending language exchange events to enhance your language skills while connecting with locals and fellow language enthusiasts.
Theres a language school close to where I work, and when I’m sitting in the square sometimes, the students come up to me and practice their Spanish. You can do the same, the locals are really welcoming to tourists and always have the patience to teach you a few new words.

Where to stay in Madrid on a Budget

Best Hostels In Madrid
Accommodation in Madrid can range from budget-friendly hostels to luxurious hotels. Prices vary depending on the location and room type, with hostels typically starting at around 15 EUR per night and mid-range hotels averaging around 80-120 EUR per night. This is in the high season.

Off-season, you can expect to pay €12-15 in a shared room or around €18+ for single room of your own. They all come with the basic features like Wi-Fi, a little storage, showers, kitchen etc. Check out this post on the best budget Hostels in Madrid if you need some more info to make a better choice.

Budget Hotels in Madrid
If you like a little more luxury and have the budget to spend, then a hotel in the center of Madrid is also a good choice. In the summertime, expect to pay between 80 – 155 per night and around 60-100 during off-season. Here’s a post on some of the best budget hotels in Madrid that will help you with your choice.

Air BnB is also an option, but I have mostly used Hostels and the odd hotel room when I was travelling back and forth frequently, but I got my own place eventually.

Where to eat in Madrid on a Budget

Madrid caters for the backpacker, the travelling family all the way to 5 start hotel suites for the rich and famous. Just cause you have the money doesn’t mean you have to spend it all to have comfort and enjoy your trip.

If you want to see Madrid on a budget, then you might want to avoid the immediate surroundings of Sol, Plaza Mayor and Gran Via. You only have to go a few hundred yards over to Malasaña, one of my favorite neighborhoods of Madrid. You are within a 10-minute walk to Sol and most of the major sites. You are also in one of the coolest areas of Madrid.

The area is calm, the prices of accommodation are a lot less than the mentioned areas above, and you are close to everything you need to be close to.
Food in Madrid

Spain has an amazing food culture, and luckily in Madrid with have a little piece of it all. There are bars and restaurants with food options from all around the country. When you are out bar hopping, you won’t need a whole meal as you will be given tapas with your drinks.
If have not been to Madrid before, what happens is you walk into a bar, or just sit at an empty table outside, no need to wait. The waiter will come and take your order, come back with your drinks, then a moment later bring out a small plate with some food on it. It could be some bread with cheese, cured ham, Spanish omelet, croquettes, whatever it is it will be yummy.

You should really try the ´Patatas Bravas´ (fried potato cubes that come with a garlic and a spicy tomato sauce). The calamari are also good and you can’t come to Madrid without trying out some real Spanish omelet.
Walking around the center of Madrid, look out for the black boards that hang outside all the bars and restaurants indicating how much a ´Menu of the day´ is. For between 15-20 per person, you can get a starter, main, desert and your drinks, half menus are also available in some places.

Other than the local bars and restaurants, something I really like to do it walk around and get something small from different bakeries. They all have their own specialties. Some make good pies, some good croissants, some make really goods sandwiches, but point being you will never go hungry and can eat in Madrid on a budget and get great quality too.

Drinks are relatively cheap here. A beer will cost you from €2-5 depending on the size. You have a ´caña´ that’s a small glass, a ´doble´ in a larger glass, then you have a ¨Jarra¨ that’s a big Jug of beer. Coffee is like €1.20 if you drink it black and €2 euros if you like it milky. Water is also cheap but carry a water bottle with you because there are fountains all over the city where you can refill.
Insider tip: Just around the corner from my office is a bar called ¨El Tigre¨. It’s really popular among locals and always busy, but I was not sure why until I went there for the first time. When you order a drink at El Tigre, the accompanying tapas is like a meal in itself! The plates are huge. After a couple of drinks, we had to tell them to bring them without the tapas because we are full.

Money Saving Tips to See Madrid

Carry a water bottle – You will be walking a lot, so drinking a lot of water is essential. Don’t constantly buy new bottles of water, just carry a bottle because there are water fountains all around the city, and you can find them all on this map.

Visit Free Museums – Many of the museums in Madrid are free for the last 90 mins of the day. Like the Prado is free in the evenings, sp do a quick check for the museums you are staying close to see if they have a free period during the day to avoid paying the entrance fee.

Free walking tours – You can choose to leave a little tip at the end, but these walking tours are completely free. You get to learn a little about the history of the city, see it in more detail and meet some new people in the process.

Grocery Shopping – If you want to eat in Madrid on a budget, then do your own grocery shopping. For around €10 a day, you can buy more than enough food to prepare at your accommodation.

Walk a Lot – If you are capable, you should walk everywhere you can. If you take the main streets just to see the main attractions, you will miss so much that is hidden away in the back streets. One of the best places to eat churros in Madrid, ´San Gines´ is tucked away under an arch, down a back street that you would never come across if not told. So stroll through all the little side streets.

Nightlife on a budget in Madrid

Madrid is busy in the daytime, there is a sea of people, and the nightlife is no different. My favorite places to go in the evenings are Lavapies or Malasaña. The streets are lined with bars, and you can plot yourself on one of the tables and order a beer. There is always some street performer playing music or doing some type of show.

Music pours out from all the bars; people meet and talk to friends and strangers alike. It’s very easy to strike up a conversation in Madrid. People are friendly, the atmosphere is chilled, not like being in Benidorm where everyone is drunk and loud. Here people sit and talk, laugh, exchange stories, it’s a great experience.

I have never been much for nightclubs; you can’t hear yourself speak and not much interacting with other people goes on. With only €10-20 euros in your pocket, you can go for a stroll, have a few beers, grab something to eat and still have a little change left over.