The Spanish capital topped Club Med's Ultimate Family Holiday index beating London, Paris, Berlin and Bangkok.
Taking into account seven factors including average spend per day, happiness score of a country and the cost of a meal at an inexpensive restaurant in the city, Madrid came out tops.
The British holiday company also took into account the number of UK visitors to the city and how often it was mentioned on social media. An incredible 13,968,270 Brits visited Spain in 2018, which is more than double the number of those that visited of France
“With an average spend per day of £74, the average meal amounting to about £9.50, and a happiness score of 6.31 out of 10, Madrid is a city that gives your family more for your money – and delivers positive vibes while doing it!” concluded the report.
London ranked 2nd on the list, followed by Paris, Berlin and Bangkok.