Plaza de la Paja is located in the area known as Madrid de los Austrias, in the historic centre of Madrid, Community of Madrid, Spain, Latina district. It is crossed from north to south by the Costanilla de San Andrés, close to Calle de Segovia, and is where various medieval streets converge: to the east, Calle del Príncipe de Anglona leads out and to the west, Calle de Alamillo, Calle del Toro, Calle Alfonso VI and Calle de la Redondilla.
The square was Madrid’s great market during the 13th and 14th centuries, and its true nerve centre and agora. It fell into decline from the 15th century onwards, when King John II of Castile ordered the construction of the Plaza del Arrabal (the predecessor of the Plaza Mayor), to which the town’s commercial activity was moved.
Despite this, it maintained its importance as the residence of the main noble families of Madrid. In its surroundings were located different palaces, such as the palatial houses of the Lasso de Castilla and the Marquises of La Romana, among others, of which only the palace of the Vargas remains, a surname linked to the urban patriciate since the Christian conquest of the city. In the second half of the 19th century, the palace housed a café, then a theatre and a printing press.
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