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Located in El Retiro Park, a UNESCO World Heritage Site, the Velázquez Palace was erected between 1881 and 1883 as a pavilion to host the International Exhibition of Mining, Metallurgical Arts, Ceramics, Glassware and Mineral Waters. It was built by Ricardo Velázquez Bosco, whom the building was named after, the same architect behind the neighbouring Glass Palace.

Inspired by Joseph Paxton’s Crystal Palace in Hyde Park, the palace, found nearby the Artichoke Fountain, is topped by large iron and glass domes that allow natural light to flood the interior. The exterior features two-toned brickwork and colourful tiles designed by Daniel Zuloaga (the renowned Spanish ceramist whose tiles can also be found on the façade of the nearby Glass Palace and covering the dome of the Church-Convent of Santa Teresa). Just like the Glass Palace, the Velázquez Palace is a Reina Sofía Museum annex.

Since 1987 it has been hosting temporary exhibitions by such artists as Cindy Sherman, Nan Goldin, Juan Muñoz and José Manuel Broto.