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The Encarnación Monastery is one of the largest active monasteries in Spain, located in Madrid. The Encarnación Monastery was founded in 1611 by Queen Margarita of Austria, wife of Philip III, who favoured its construction.

The monastery was built between 1611 and 1616 for the project of the Court of Architecture.

The convent was built between 1611 and 1616, designed by the court architect Alberto de la Madre Dios. The building was erected on the land where the houses of the Marqués de Pozas, bought from them by the king, had previously stood. Brick and stone slabs were used in the construction of the main façade, which is in the Erresco style. The façade is decorated with the shield of Queen Marguerite and a relief image of the Annunciation in marble. The beginning of construction was marked by a solemn ceremony at which the first stone of the building was laid by the king himself with the blessing of the archbishop. Unfortunately, the queen never waited for the monastery to be completed - she died 3 days after the start of construction.

The interior of the building was significantly altered by architect Rodriguez Ventura after a fire occurred in the monastery in the 18th century. The talented architect brought elements of neoclassicism to the interior of the monastery, adding original altarpieces and paintings. The interior of the church is also adorned with paintings by Luca Giordano, works by Francisco Bayeu, magnificent tiles, as well as sculptures by Gregorio Fernández and a fine collection of paintings by José de Ribera and Vincenzo Carducci.

The reliquary houses the relics of the saints, as well as a vessel with caked drops of St Panteleimon's blood. Every year, on 27 July, the day of the saint's death, the blood becomes liquid, and if one day it does not, it is believed that terrible misfortunes await Madrid.

In 1965, the monastery was opened to visitors.