The Wales international swapped the Premier League for La Liga in September 2013 for a reported world-record fee of £85million after starring for Tottenham.
Bale is one of a handful of British players to have opted to ply their trade in a foreign country, although Ashley Cole and Micah Richards moved to Roma and Fiorentina respectively in the last transfer window.
However, Bale - who helped Real to a Copa del Rey and UEFA Champions League double in his first season - has called for more Britons to leave their comfort zone.
"I think the most important thing is you feel it's the right move," he told The Independent. "If you feel you're going to play, then I would encourage a British player to go abroad.
"I've enjoyed every minute of it, the new culture, the new life. I felt like I wanted to challenge myself. It's down to the player himself whether he can kick on."
Bale, who will hope to line up for Real against city rivals Atletico on Saturday, scored 15 goals in 27 La Liga appearances last term and the 25-year-old believes he can do even better this time around.
"I definitely feel I can keep improving every season, improve my game in training every day," he added. "We're expected to try to win every trophy. We want to win every trophy. We'll give our best."