Enclosed by elegant three-story residential buildings painted in warm terracotta and adorned with 237 wrought-iron balconies, Madrid’s Plaza Mayor is a masterpiece of Habsburg-era urban design and one of the most beautiful public squares in Europe. Commissioned by Philip III in 1619, the rectangular plaza measures 129 by 94 meters and has served as the stage for royal coronations, bullfights, theatrical performances, public executions, and the tribunals of the Spanish Inquisition. At its center, the bronze equestrian statue of Philip III presides over a space that today pulses with street performers, portrait artists, and visitors drawn by the harmonious symmetry of the surrounding facades.

The square’s nine entrance archways create a sense of discovery as you step from the narrow surrounding streets into the vast, sunlit expanse. The Casa de la Panaderia, the most ornate building on the north side, features vibrant allegorical murals added in 1992 and now houses the city’s tourist information center. Beneath the arcades, traditional shops sell handmade fans, flamenco dresses, and artisan crafts, while the terrace cafes offer prime people-watching over a leisurely coffee. During the Christmas season, the plaza hosts a beloved holiday market with over 100 stalls selling nativity figurines, ornaments, and seasonal treats.

Pro tip: The terrace cafes on the square are atmospheric but expensive and generally mediocre in quality. Instead, duck through the southwest archway to Calle de Cuchilleros and descend the steps to find Sobrino de Botin, certified by Guinness as the world’s oldest restaurant, or explore the tapas bars along nearby Cava Baja for a far better culinary experience.