Madrid

The official seat of the Spanish monarch and royal family is located on the outskirts of Madrid.

An excerpt from the article 17 facts about Madrid
The Palacio de la Zarzuela was put into use in 1635. It was built by order of Philip IV Habsburg, initially to be used as a hunting lodge. Although the official residence of the royal family is the Palacio Real de Madrid, also known as the Palacio de Oriente, since 1962 the royal family has preferred the Palacio de la Zarzuela, the more intimate and located away from the hustle and bustle.