The main bands from Madrid these days are:
Silla Eléctrica: Raw hardcore with guy/girl vocals. Released 3 7"s so far, all of them great.
Rumania: These guys play some nice hardcore punk, sound similar to Dead Kennedys. Haven't been around for very long and only released one EP as far as I know.

Coprolitos: Female fronted hardcore from Madrid, have a few 7"s and a couple split EPs. One of those splits was with fellow Spanish punkers La URSS who just recently released an LP.

Las Señoras: Relatively new all-girl group from Madrid, they play fast punk rock with a bit of synth. Sounds like it would be shit, but it's great.

Those are the main bands that I can think of, or I guess the ones I know best.
As for labels, in Madrid there are a few small ones that have released one or two records and that's it, but apart from that there's really only two that I can think of:
Blondes Must Die Records: They release a lot of hardcore/lo-fi stuff from Madrid and surrounding areas.

Solo Para Punks: Label that releases good hardcore from Madrid, as well as other Spanish speaking areas. They also stock a lot of Spanish classics from bands like Eskorbuto, Kangrena and TDK.

Apart from that, there are a couple distros that have a lot of Spanish hardcore.
Terminal Picnic Not sure if they're still around even, but they have a lot of newer Spanish stuff for sale.

Dogends Records which is the distro I run. Has some of the newer Spanish records that have reviews for them in English. Only been at it for a few months so it's still a work in progress.

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