We will be traveling with 3 children to Spain for two weeks at the end of March. We have some flexibility on where we fly into. At this point thinking of flying in and out of Madrid, or into Barcelona out of Sevilla? Would it make more sense to fly into one city and out of another? Is it more cost effective to rent a car than to take a train? What are your favorite small towns between or around Barcelona/Madrid/ or Sevilla? We like a mix of city and country. Any suggestions greatly appreciated!

Given that you have 5 (?) people in your group, a car would undoubtedly be more cost effective. Be aware, however, that rental cars in Europe tend to be standard transmission, not automatic transmission. Automatics are usually considerably more expensive than shift cars. Roads in Spain are extremely good, though parking in cities is often hideously expensive. I wouldn't advise taking the car into a major city.

I'd drop the car at the airport when you arrive at a major city and then take a taxi into town.

I think flying in one city and flying out of another makes sense, because you don't have to backtrack.

I really enjoy the south--Sevilla, Granada, Cordoba, Ronda, etc. Two sights that every visitor to Spain should see are the Alhambra in Granada and the Mezquita in Cordoba. The geology in Ronda is fabulous, and Sevilla has wonderful architecture.

If you fly into Madrid, when you're ready to go, you can rent a car and drive to Granada and then to Cordoba. I don't recall having a problem with exorbitant parking fees at either city, though I can't remember exactly how much I paid. Ditto for Ronda.

If you do go to Sevilla, leave it for last, and drop the car off at the airport, coming into town by taxi.

Barcelona is a great town, but it's pretty far away from Madrid or any of the other cities I've mentioned. You'd use up a good day of your precious time getting to or from Barcelona.

Also keep in mind that you will use at least half a day packing, checking out, getting to your next destination, finding the hotel, checking in, etc.

I hope you enjoy your trip. I'm going to Spain again in March/April. I love Spain.

I think the most important thing you need to do is determine which area(s) you want to visit for these 2 weeks. You mention Madrid, Barcelona & Andalucia. I wouldn't try to do all 3 with three children. You could do 2 of these areas or even focus the entire time in Andalucia. There are small towns in all these areas - but the key is what interests you the most. Once you determine which area(s) to cover then it will be easier to help you.

One note: the first week of April is Semana Santa (Holy Week). Andalucia, and in particular Sevilla, will be brimming with activity and excitement. It's a great time to visit but there are crowds and you will need to book your hotel ASAP if the trip falls in this time and also be prepared for premium prices (especially in Sevilla, not as much in the other places).

Thank you for the tips and advice, especially the Semana Santa info. It is looking like we will fly into Barcelona, stay 3 days, then high speed train to Madrid, staying in Toledo for one night, then AVE to Malaga, rent car and spend the rest of our time in Andalucia, flying out of Seviila. Our kids are 5,7, and 9, and they are seasoned travelers? ; )
Has anyone rented a car from the Malaga train station? Wondering how easy or difficult it is to get out of town.

If you're flying on a transatlantic flight and Barcelona is your first overnight I'd probably stay at least 4 nights. This will give you time to recover from jet lag and see the major sights in Barcelona. I generally recommend 4 days minimum for Barcelona even without day trips. If you're really not interested in visiting Madrid and were only going to spend one night in Toledo I'd consider just flying from Barcelona to Malaga (or Sevilla, Granada depending on your itinerary). It's much quicker and there are some excellent airfares if purchased in advance. For the Andalucia portion of your trip you may not need the rental car for the entire time. For example if you wanted to visit Granada, explore the white villages and then Sevilla you'd really only need the car to explore the white villages. It won't be useful in Granada or Sevilla. Just an example - how it works really depends on where you decide to visit.