Couldn't get to Madrid this past December? Here's a video of what you missed:

Navidad 08 en Madrid by Canon EOS 5D MKII from Mauro Fuentes on Vimeo.

Travel to Spain during the Christmas holiday season to experience a festive, fun atmosphere as the cities and villages transform themselves to celebrate the season.

And if you want to visit Spain on a budget and don't mind the cooler weather, this is a good time of year to visit.  Think about visiting during late-November and all during December.  The hotel prices go down as the Christmas decorations get put up.

You'll see tastefully done Christmas decorations all around the country.  Here's a sampling:

A holiday light display on the side of a Madrid building. I think this is El Corte Ingles in Madrid.