Madrid's grand central square dates to the early 17th century, when Juan Gómez de Mora gave shape to Felipe II's vision of a unified royal plaza. For centuries this was where Madrid staged its biggest spectacles — royal proclamations, bullfights, markets, and the grim autos-da-fé of the Inquisition. Three major fires led to successive rebuildings; the uniform neoclassical facades you see today are largely the work of Juan de Villanueva in the 1790s.
Today the square is ringed by cafés (overpriced, but the setting compensates) and anchored by the equestrian statue of Felipe III. It's at its best on a winter morning before the tour groups arrive, or on a Sunday when the stamp and coin market sets up under the arcades. The Casa de la Panadería on the north side, with its frescoed facade, is the most photogenic building.