The most convenient area for tourists is around Calle de Preciados, between Sol and Gran Vía, home to El Corte Inglés department store, and high-street names like Zara, Gran Vía 32, and Casa Jiménez, Calle de Preciados 42, famed throughout Spain for its mantones and mantillas (lace and embroidered shawls).

The smartest shopping district is Salamanca northeast of the centre, around Calle Serrano. Top designer names like Armani, Chanel, Versace, Hermès and Hugo Boss, including the fluid fabrics and elegant cuts of Spanish designer Adolfo Domínguez, are located on Calle Ortega y Gasset.

Head for Calle Serrano for Purificación García, Roberto Verino, Ermenegildo Zegna and Yves Saint Laurent. Another trendy area is Chueca, especially Calles Almirante and Conde de Xiquena, while the place for youth fashions is Calle Fuencarral. You can find bargains during the sales, which take place in January and July.

The main areas for antiques are Salamanca and the arcades on Calle Ribera de Curtidores - Nuevas Galerías, at number 12, and Galerías Piquer, at number 29. Bargain hunters should make for the Rastro, Madrid's famous flea market, also located around Ribera de Curtidores. The market is open on Sunday mornings (closing at 1400). Shoppers should beware of pickpockets in this area.

More unusual shops include: Mesquida, Calle Mayor 22, for religious and devotional objects, including crib pieces; the Spanish guitar specialist, Manuel Gonzales Contreras, with the store at Calle de la Paz 8, and the workshop at Calle General Margallo 10; El Flamenco Vive, Calle Conde de Lemos 7, which sells sheet music, videos and CDs as well as colourful costumes and accessories; and Seseña, Calle Cruz 23, makers of traditional Spanish capes.

Madrid's shops are generally open from 0930/1000 to 1330/1400 and 1630/1700 to 2030/2100, with major stores open throughout the lunch hours.

VAT (IVA) of 16% is charged on most goods in Spain. It is possible for visitors from outside the EU to claim a tax refund from many central shops - shoppers should look for the Global Refund Tax Free Shopping stickers in windows and ask for Tax Free Cheques and keep with receipts to be presented at airport customs upon departure. Further information is available from Global Refund (www.globalrefund.com).