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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.

In 1499, about 50,000 Moors in Granada were coerced by Cardinal Cisneros into mass baptisms and conversion. During the uprising that followed (known as the First Rebellion of the Alpujarras), people who refused the choices of baptism or deportation to Africa, were systematically eliminated. What followed was a mass flee of Moors, Jews and Gitanos from Granada city and the villages to the mountain regions (and their hills) and the rural country, however by 1500 Cisneros reported that "There is now no one in the city who is not a Christian, and all the mosques are churches".

The Complutense University is one of the oldest universities in the world, as well as the largest and (after Salamanca) most prestigious in Spain. It has 10000 staff and a student population of 117 000. It is located on two campuses, in the university quarter Ciudad Universitaria at Moncloa in Madrid, and in Somosaguas.

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.

After World War II, being one of few surviving fascist regimes in Europe, Spain was politically and economically isolated and was kept out of the United Nations until 1955, when it became strategically important for U.S. president Eisenhower to establish a military presence in the Iberian peninsula. This opening to Spain was aided by Franco's rabid anti-communism.

Through a policy of alliances with other European nobility and the conquest of most of South America and the West Indies, Spain began to establish itself as an empire. The Treaty of Tordesillas, negotiated by Pope Alexander VI between Portugal and Spain, effectively divided up the non-European world between these two budding empires. Massive amounts of gold and silver were imported from the New World into Spain's coffers. However, in the long run this hurt the Spanish economy much more than it helped it. The bullion caused high inflation rates, which undermined the value of Spain's currency. Additionally, Spain became dependent on her colonies for income, and when Queen Elizabeth I of England began to capture Spanish vessels on the way to and from the New World, Spain suffered massive economic losses. These effects, combined with the expulsion of Spain's most economically vital classes in the late 15th century (the Jews and the Moors), caused Spain's economy to collapse several times in the 16th century, bringing the Golden Age of Spain to a close.

A revived movement for the Christian unification of Spain was capitalized on by the "Catholic monarchs" (Reyes Católicos in Spanish) Isabel I of Castilla and Fernando II of Aragón in order to justify their invasion of Granada, the expulsion of the Jews and the forceful conversion of the Moors. In the 15th century, the Kingdoms of Castile and Aragon were united under Isabel and Fernando. These two able rulers ruled jointly and worked to consolidate the power of the monarchy at the expense of the nobility. During their reign, the castles of many nobles (symbols of aristocratic independence from the monarchy) were demolished, and a system of regular taxation was established. Fernando and Isabel established the basis for the unification of Spain religiously as well as politically and economically.

Madrid is also noted for its nightlife and discotheques. Younger madrileños sometimes dance all night, stop off for chocolate y churros at dawn, go home, shower, shave, and go to work. This nightlife, called la movida or la marcha and initially focussed on the Plaza del Dos de Mayo, flourished after the death of Franco, especially during the 80's while Madrid's most cherished mayor Enrique Tierno Galván was in office. A particular hub for this night activity is nowadays the nearby gay village of Chueca. However, as prices continue to rise and more jobs become available, nightlife in Madrid is becoming more and more like that of other European cities such as Stockholm or Munich.

On February 20th 2005, Spain became the first country to allow its people to vote on the European Union constitution that was signed in October 2004. The rules states that if any country rejects the constitution then the constitution will be declared void. The final result was very strongly in affirmation of the constitution, making Spain the first and so far only country to approve the constitution via referendum.

Spain is a constitutional monarchy, with a hereditary monarch and a bicameral parliament, the Cortes Generales or National Assembly. The executive branch consists of a Council of Ministers presided over by the President of Government (comparable to a prime minister), proposed by the monarch and elected by the National Assembly following legislative elections.

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.

The Romans arrived in the Iberian peninsula during the Second Punic war in the 2nd century B.C., and annexed it under Augustus after two centuries of war with the Celtic and Iberian tribes and the Phoenician, Greek and Carthaginian colonies becoming the province of Hispania. Some of Spain's present languages, religion, and laws originate from this Roman period.

Madrid is home to Real Madrid, the world's most successful football club (according to FIFA). There are three other major teams, the Primera Division club Atlético de Madrid, Getafe Club de Futbol and Rayo Vallecano.

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.