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I suppose that begs the question:
OP, Clearing customs at a transit airport is unusual anywhere outside of the US—do you expect to clear customs in Madrid?
That is correct. All passengers arriving from outside Schengen will clear transit security prior to a flight within Schengen. I have always found that screening to be less crowded and hectic, and less thorough than the process when first arriving at an airport. (I think they level let me keep...
I'm very familiar with MAD's T4, which Iberia and American use, but I haven't been to T1/2/3 in years.
At T4 you would go through passport control in T4S immediately upon landing, then take the train to T4. Rising from the train, you'd turn right off the escalators to go through 'Transit...
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