Originally known as the Palacio de Comunicaciones, this monumental building was constructed between 1905 and 1919 to serve as the headquarters for the Spanish postal, telegraph, and telephone services. Its design was the result of a national competition won by the architects Antonio Palacios and Joaquín Otamendi. The structure is a prominent example of early 20th-century Spanish architecture, blending historical styles with modern functional requirements of its time.

The building is situated at the iconic Plaza de Cibeles, one of Madrid's most famous and symbolic squares. For decades, it was a central hub for the country's communications network. Following an extensive and ambitious renovation project completed in 2011, the building was repurposed and inaugurated as the seat of the Madrid City Council, housing the mayor's office and other municipal departments.

Today, the Palacio de Cibeles functions as a major cultural and civic center under the name CentroCentro. It hosts a diverse program of temporary exhibitions spanning contemporary art, design, photography, and social history. The center also organizes concerts, conferences, workshops, and educational activities, positioning itself as a dynamic public space dedicated to culture and citizen engagement.

A key attraction within the building is the public observation deck located on its eighth floor. Known as the Mirador, it offers visitors a 360-degree panoramic view of the city of Madrid. From this vantage point, landmarks such as the Puerta de Alcalá, the Gran Vía, the Bank of Spain building, and the Retiro Park can be observed, providing a unique perspective on the urban layout.

The building's historical and architectural significance has been formally recognized. It has been listed as a Bien de Interés Cultural, a designation for Spain's heritage properties of cultural interest. Its transformation from a utilitarian communications palace into a vibrant cultural institution and seat of local government represents a successful model of urban regeneration and adaptive reuse of historic architecture.