Palencia is a city of Spain located in the autonomous community of Castile and León. It is the capital and most populated municipality of the prov…Palencia is a city of Spain located in the autonomous community of Castile and León. It is the capital and most populated municipality of the province of Palencia. Located in the northwest of the Iberian Peninsula, in the northern half of the Inner Plateau, the city lies on the left bank of the Carrión river.