Madrid Airport changing terminals, do I need a Schengen visa?
Upvote:8
You need a Schengen type C short stay visa for this itinerary.
The terminal change in Madrid isn't relevant; the fact that you are entering the Schengen area at Lisbon and exiting Schengen in Madrid is the important bit. To do this, you need to have the regular Schengen visa.
Upvote:10
Since you are transiting in both Lisbon and Madrid, you will be entering the Schengen Area and not just transiting. Therefore, as soon as no visa-free travel is allowed to Indian citizens, you will need a regular Schengen short stay visa, regardless of the terminal situation in Madrid.
As you are entering through Portugal, you should apply for such a visa at the consulate of Portugal.
The consulate of Portugal likely told you the contrary because they didn't realize you will be going to Spain next, and not directly to India.
You should now decide whether you actually want to go through the visa application process, or maybe just rebook your flights such that you only transit at one Schengen Airport (e. g. YYZ-FRA-DEL). Look at the costs for the visa and for rebooking the flights before making your decision.
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