Madrid takes the holidays seriously — elaborate street lighting, a centuries-old Christmas market, and a New Year's Eve tradition involving twelve grapes and a very tight deadline.
Madrid's main Christmas market fills Plaza Mayor with stalls selling ornaments, nativity-scene figures, and novelty items alongside mulled wine and roasted chestnuts. It's one of Spain's oldest markets of this kind and, unlike a lot of Plaza Mayor's dining, is genuinely worth browsing rather than a pure tourist trap — locals shop here too, especially for nativity scene ("belén") figures, a serious tradition in Spanish homes.
Gran Vía, Calle Serrano in Salamanca, and the Plaza de Cibeles all put on elaborate illuminated displays through the season, switched on in late November. Walking the route from Sol up Gran Vía after dark is one of the better free things to do in Madrid in December, cold weather aside.
Museums generally stay open with adjusted hours, though the Prado, Reina Sofía and Palacio Real typically close or run reduced hours on 25 December and 1 January specifically — check before planning a visit on those two dates. Restaurants are a mixed picture: some close for a family Christmas Eve or Day, others (especially in touristy areas) stay open throughout.
Spain's signature New Year's tradition — eating twelve grapes, one on each clock chime at midnight — is centred nationally on the clock tower at Puerta del Sol, where crowds gather to do it live, mirroring the tradition broadcast on Spanish television nationwide. It's festive but genuinely crowded; arrive well before midnight if you want to be part of the Sol crowd, or watch from a bar or rooftop instead.
Cold and often dry rather than snowy — see our weather guide for December specifics. Pack a proper coat; Madrid's winter cold is sharper than "sunny Spain" assumptions suggest.