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In the 1960s, more than a decade later than other western European countries, Spain began to enjoy economic growth and gradually transformed into a modern industrial economy with a thriving tourism sector. Growth continued well into the 1970s, with Franco's government going to great lengths to shield the Spanish people from the effects of the oil crisis.

While the siesta — an hours-long mid-afternoon break from work — is generally in decline, the typical rhythm of the day in Spain remains relatively distinct from the European norm. Many shops and some museums (though relatively few other businesses) still split their hours into two distinct periods of opening with a two or three hour break in the middle; a paseo (stroll) in the early evening remains a common custom in many smaller cities and to some extent even in the larger ones; the dinner hour is the latest in Europe, typically about 10 p.m.; nightlife begins accordingly late, with many dance clubs (even in relatively small cities) opening at midnight and staying open until dawn; in Madrid in the summer there is nothing unusual about a live musical performance being scheduled for one or two o'clock in the morning.

Terrorism is a problem of present-day Spain, since ETA (Basque Homeland and Freedom) is trying to achieve Basque independence through violent means, including bombings and murders. Although Basque Autonomous government does not condone any kind of violence, the different approaches to the problem are a source of tension between Central and Basque governments. Besides ETA violence, the conflict in the Basque Country is also shaped by the non-acceptance on the part of the spanish state of the right of basque people to choose freely their political status. Recently, 2 political parties - which in previous elections had received the support of around 15% of the popular vote- have been banned due to their negative to condemn publicly ETA violence in the terms that the main spanish political parties wanted.

In 1898 Spain lost the Spanish-American War. Cuba gained its independence, and Spain lost its remaining New World colonies—Guam, the Philippines, and Puerto Rico—to the United States. Spain's colonial possessions were reduced to Spanish Morocco, Western Sahara and Equatorial Guinea.

The expulsion of the Muslims was reputedly started by the first King of Asturias, named Pelayo (718-737), who started his fight against the Moors in the mountains of Covadonga (722). Later, his sons and descendants continued with his work until all of the Muslims were expelled. Meanwhile, in the east of the peninsula the Frankish emperors established the Marca Hispanica across the Pyrenees in part of what today is Catalonia, reconquering Girona in 785 and Barcelona in 801. It was a buffer zone against Islam.

Spanish cuisine is made of very different kinds of dishes due to the differences in geography, culture and climate. It is heavily influenced by the variety of seafood available from the waters that surround the country. As Spain has had a history with many different cultural influences, the richness and variety of its cuisine is overwhelming, but all these ingredients have made up a unique cuisine with thousands of recipes and flavours. Much influence on Spanish cuisine has come from the Jewish and Moorish traditions. The Moors were a strong influence in Spain for many centuries and their food is still eaten in Spain today.

Spain never entered the period of the Dark Ages such as were endured in Britain, Gaul, Lombardy and Germany. The Visigoths tended to maintain more of the old Roman institutions, and they had a unique respect for legal codes that resulted in continuous frameworks and historical records for most of the period between 415, when Visigothic rule in Spain began, and 711, when it is traditionally said to end. The proximity of the Visigothic kingdoms to the Mediterranean and the continuity of western Mediterranean trade, though in reduced quantity, supported Visigothic culture. Arian Visigothic nobility kept apart from the local Catholic population. The Visigoth ruling class looked to Constantinople for style and technology while the rivals of Visigothic power and culture were the Catholic bishops— and a brief incursion of Byzantine power in Cordoba.

Spain suffered a shocking terrorist attack, the March 11, 2004 Madrid attacks on its capital's commuter train network, killing 200. Al-Qaeda has been blamed for this attack. Some have attributed the fall of the Aznar government to this attack, which took place just two days before the 2004 elections. At first the public believed ETA was responsible for the bombing. When they learned Al-Qaeda was the true culprit, many voters lashed out at the media and Aznar's government, believing the two had colluded to deceive the public.