This non-profit institution, located in the Salamanca district of Madrid, is a cultural and educational project developed by the Autonomous University of Madrid in collaboration with Shanghai International Studies University (SISU). It seeks to promote the development of Chinese education and culture.

The origins of the Madrid project date back to 2005, as a result of the agreement entered into by the Chinese President, Hu Jintao, with the Autonomous University and Casa Asia, at the initiative of the latter, so that Madrid would be home to the first Spanish branch of the Confucio Institute.

Confucius Institutes are committed to spreading knowledge and understanding of China to as many people as possible, chiefly through the study of Mandarin Chinese (through courses and official exams), along with various facets of the country's cultural, social, and economic life.