In the place of the palace of Philip II that was burned down in 1604, Philip III had this vast dwelling built in 1772 by Sabatini. It was an official residence of the Spanish Royal Family for a long time and its last inhabitant was General Franco who lived here for 35 years. Today, visiting heads of state are welcomed here. More than 200 18C tapestries hang on the walls, most made in the Royal Factories of Madrid.