The player says in Spanish that signing for the club is "a dream come true" and he will help Real win their 10th European title.
The 24-year-old posed next to the club's president Florentino Perez with his new white number 11 shirt while around 20,000 fans in the stadium cheered, clapped and took photos.
The Wales international successfully passed his medical on Monday morning before signing a six-year contract with the Spanish giants, where he will link up with Cristiano Ronaldo, who in 2009 became the most expensive player in the world when Real signed him from Manchester United for £80m
Wearing a sharp black suit, white shirt and black tie, Bale listened to a translation as Perez introduced him and described him as an "exceptional footballer".
He was joined by his girlfriend Emma Rhys Jones and their young daughter Alba Violet.
"Bale's determination made it possible for him to be here today," Perez said, his speech regularly interrupted by cheers.
The moment he dreamed of as a child has arrived. This is your stadium, this is your shield and these are your fans. This is your home."
Bale spoke to his new supporters, including a message in Spanish where he said: "Hello, it's a dream for me to play for Real Madrid. Thank you for the great welcome. Go Madrid!"
Shortly after Bale changed into his strip and took to the pitch to do keepy-uppies and kick footballs into the excited crowd.
He then made his way to the centre circle where he applauded the supporters and kissed the Madrid badge on his shirt.
Coach Carlo Ancelotti can deploy his new player in a formidable attacking trio with Portugal forward Ronaldo and France striker Karim Benzema as Real attempt to wrest the Spanish title back from arch rivals Barcelona.
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