The Zarzuela Palace is the residence and working offices of the reigning monarch of Spain, although the official residence of the Spanish royal family is the Royal Palace of Madrid. The Zarzuela Palace is on the outskirts of Madrid, near the Royal Palace of El Pardo, which accommodates visiting heads of state. The palace is owned by the S…The Zarzuela Palace is the residence and working offices of the reigning monarch of Spain, although the official residence of the Spanish royal family is the Royal Palace of Madrid. The Zarzuela Palace is on the outskirts of Madrid, near the Royal Palace of El Pardo, which accommodates visiting heads of state. The palace is owned by the Spanish government and administered by a state agency named Patrimonio Nacional.