Madrid

For the accommodation, if you reserve ahead of internet for the high season, you will manage to find interesting offers. An advice : don't forget the air conditioning in this period!

Otherwise, you can also rent apartments (on AirB*B) or accomodate in albergues of the juventud (youth hostel) ;)

For the meals, you will find a lot of cheap tapas bars and other typical restaurants proposing regional specialities.