Compared to most of the rest of western Europe, Madrid is a bargain. Hotels are reasonably priced and standards are quite high, and hostels are plentiful in the city center for those on a tighter budget. Find the best deals on our recommended Madrid hotels page for great choices that are cheap and have central locations.
The attractions mostly have very reasonable price tags and several of the museums have frequent periods with free admission so the budget traveler can see a lot for very little, as long as they don’t mind the big crowds that always come along with that approach.
Food in Madrid is also refreshingly cheap compared to most of the rest of Europe, and those who like ham will be especially happy here. Tapas joints are all over and budget travelers will have no problem assembling an affordable meal in these social establishments. Drinks also tend to be cheap, especially the beer that is so common at the tapas restaurants and most everywhere else. Good wine can be found in restaurants at very reasonable prices as well, though mixed drinks can be pricey, especially at night clubs and such.
If you want to do the famous sightseeing attractions you might read our Madrid Pass review to see if it would save you time and money.