Badajoz is the capital of the Province of Badajoz in the autonomous community of Extremadura, Spain. Its location close to the Portuguese border greatly influences the city. Portuguese restaurants and pastries can be found in the city, and residents often travel across the border for meals/excursions. A festival known as "Feria de San Juan" is held every year in Badajoz from 23 June to 1 July. It is a major attraction for people of Spain and many Portuguese also cross the border to attend the one-week festival.

Badajoz is primarily a commercial city. Because of its location, it shares a considerable transit trade with Portugal. The service sector is dominant in the city. Notable industries include manufacturing of linen, woolen and leather goods, hats, pottery, and soap. It is also home to the CD Badajoz and AD Cerro de Reyes football clubs and the AB Pacense basketball club. It is served by Badajoz Railway Station and Badajoz Airport.