The capital of Spain is Madrid. Madrid is the largest city in Spain, with a population of almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is located in the center of Spain, on the Iberian Peninsula in southwestern Europe, and is virtually in the countrys geographic center, making it Spains political, economic, and cultural hub. Madrid is situated on the Manzanares River and has excellent road, rail, and air connections to the rest of Spain and other parts of Europe.