The Community of Madrid is situated on the Meseta Central, the vast inner plateau of the Iberian Peninsula. It is entirely landlocked, bordered by the autonomous communities of Castile and León to the north and west, and Castile-La Mancha to the south and east. The region's physical geography is defined by a striking contrast between the rugged mountains of the northwest and the river basins and plains of the southeast.
The region forms part of the Tagus (Tajo) river basin. While the Tagus only skirts the southern edge of the community, its major tributaries—including the Jarama, Guadarrama, Alberche, and Manzanares rivers—flow through Madrid, shaping the central valleys. The region features diverse ecosystems, from high mountain pine forests and alpine meadows in the north to Mediterranean holm oak woodlands (dehesas) and semi-arid plains in the south.
Natural resources are relatively modest, with historical granite and limestone quarrying, but the true geographic asset of the region is its centralized location, which serves as a natural logistical hub connecting all coasts and corners of Spain.