"Real Madrid states that it will donate one million euros to help refugees that will be hosted by Spain," they said in a statement.
"Loyal to its compromise to charity, the club has taken this decision with the objective to help the men, women and children that have been obliged to abandon their homes to flee war and death."
Madrid announced earlier in the week the club's turnover reached a record €660 million last season.
The club will also provide sports kits for young refugees and make some of their facilities available to the commission charged with overseeing the hosting of those welcomed into Spain.
The gesture is one of many by the world of sport in recent days to react to the European wide crisis.
Bayern Munich said on Thursday they would also give one million euros and work with Munich authorities to set up training camps for children to receive German lessons, meals and football kits.
The International Olympic Committee (IOC) has also pledged to donate two million dollars in emergency funds.