State broadcaster TVE reported the military aircraft was a Eurofighter returning from the October 12 Spain Day flypast and parade in Madrid.
The First Minister of Castilla La Mancha, Emiliano García Page, confirmed on Twitter that the pilot had died "in Albacete, serving Spain".
The Ministry of Defence (MoD) confirmed the news shortly afterwards in a statement, saying the aircraft and pilot belonged to Ala 14 and had been participating in the flypast in Madrid.
"As a result of the accident, which happened during a landing manoeuvre, the pilot of the aircraft died. There are no other victims as a consquence of the accident."
Eyewitness messages published on Twitter had suggested more than one aircraft might have crashed but the MoD limited the casualties to the lone dead pilot.
Local police in Albacete said they were working to secure the crash site and help other first responders.
The MoD has opened an investigation.