After breakfast, proceed to Half day city tour of Madrid along with Royal palace. The Royal Palace is a beautiful example of 18th century architecture and is one of the best preserved palaces in Europe. It is one of the most beautiful examples of royal residence style and has become the permanent symbol of Madrid as the political capital of the Kingdom. The most important official receptions of the Crown take place here including audiences, gala dinners and the signature of important agreements. We will visit the principal staircase, rooms of alabarderos, columns, throne, Gasparini, Carlos III, porcelains, gala dining room, museum of silver, musical instruments, principal courtyard, real chapel and the four new rooms. We continue by coach for a panoramic tour to see some of the different areas of Madrid from the Borbones, Austrias, Isabelino and contemporary quarters through to the Moorish Quarter. After that we will proceed for Toledo tour. After tour we proceed to an Indian restaurant to enjoy Indian dinner. Overnight at hotel.