Also known by its Basque name of Donostia, this beautiful city is picturesque, expensive and one of the most fashionable spots to spend the summer. The town sits on three hills ringing a crescent bay called La Concha (the Shell). The beaches are packed with sunbathers in the summer, and the town takes on a wonderful, festive atmosphere. For a break from the beach, visit the Old Town, which is filled with bars, restaurants and fishmongers (be sure to try the excellent Basque cuisine, including their famed tapas). In September, the town also hosts one of Europe's finest film festivals. San Sebastian makes a good base for day trips into the surrounding region. 220 mi/350 km northeast of Madrid.