Madrid is the capital and most populous municipality of Spain. It has almost 3.5 million inhabitants and a metropolitan area population of a…Madrid is the capital and most populous municipality of Spain. It has almost 3.5 million inhabitants and a metropolitan area population of approximately 7 million. It is the second-largest city in the European Union, and its monocentric metropolitan area is the second-largest in the EU. The municipality covers 604.3 km² geographical area. Madrid lies on the River Manzanares in the central part of the Iberian Peninsula at about 650 m above mean sea level. The capital city of both Spain and the surrounding autonomous community of Madrid, it is also the political, economic, and cultural centre of the country.