With Madrid located at almost the exact geographical center of the Iberian Peninsula so Madrid is a good starting point if you want to rent a car and drive around Spain and Portugal to see some of the many beautiful and historic places and cities. The infrastructure is generally good and especially the highways are usually in an excellent driving condition. In some parts you must pay to use the highways, but in most places they are free, and if you get to a stretch where you have to pay, there are always alternative roads without payment.
As a foreign tourist you must also have you passport with you, current until after you return home. If you are from outside the EU, you will need an International Driving License issued by the correct authority in your home country. It must have one page of information in Spanish.
If you plan to drive a car in Spain, there are certain rules you must observe. As an EU citizen and a tourist you must follow the same rules that apply for Spanish registered cars and Spanish drivers, and you can be fined for not obeying the following: