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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.

Over the past thirty years, Spain has become a more secularised society. The number of believers has decreased significantly and for those who believe the degree of accordance and practice to their church is quite diverse.

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.

The Castilian-derived Spanish (called both Español and Castellano in the language itself) is the official language throughout Spain, but other regional languages are also spoken. Without mentioning them by name, the Spanish Constitution recognizes the possibility of regional languages being coofficial in their respective autonomous communities.

The most well-known variety of Spanish folk music is likely flamenco, a diverse genre created by Andalusian Roma. Flamenco is known since at least the 1770s, and has been through several cycles of dwindling popularity and rebirth. The style has produced many of the most famous Spanish musicians, including singer Camarón de la Isla and guitarist Carlos Montoya. Outside of flamenco, regional Spanish folk music includes the distinct Basque trikitrixa and accordion music, Galician and Asturian gaita (bagpipe) and Aragonese jota. Though some folk traditions have died out or are moribund, some retain great popularity and have been modernized and adapted to new instruments, styles and formats. These include the popular Celtic music of Galicia, the singer-songwriter tradition of nova canço and New Flamenco.

After the fall of the Roman Empire, Germanic tribes invaded the former empire, several turned sedentary and created successor-kingdoms to the Romans in various parts of Europe. Iberia was taken over by the Visigoths after 410.In the Iberian peninsula, as elsewhere, the Empire fell not with a bang but with a whimper. Rather than there being any convenient date for the "fall of the Roman Empire" there was a progressive "de-Romanization" of the Western Roman Empire in Hispania and a weakening of central authority, throughout the 3rd, 4th and 5th centuries. At the same time, there was a process of "Romanization" of the Germanic and Hunnic tribes settled on both sides of the limes (the fortified frontier of the Empire along the Rhine and Danube rivers). The Visigoths, for example, were converted to Arian Christianity around 360, even before they were pushed into imperial territory by the expansion of the Huns. In the winter of 406, taking advantage of the frozen Rhine, the (Germanic) Vandals and Sueves, and the (Asiatic) Alans invaded the empire in force. Three years later they crossed the Pyrenees into Iberia and divided the Western parts, roughly corresponding to modern Portugal and western Spain as far as Madrid, between them. The Visigoths meanwhile, having sacked Rome two years earlier, arrived in the region in 412 founding the Visigothic kingdom of Toulouse (in the south of modern France) and gradually expanded their influence into the Iberian peninsula at the expense of the Vandals and Alans, who moved on into North Africa without leaving much permanent mark on Hispanic culture. The Visigothic kingdom shifted its capital to Toledo and reached a high point during the reign of Leovigild, treated in some detail at its own entry.

Except for the subtropical Canary Islands, Spain can be divided into areas experiencing, respectively, a Mediterranean climate; a climate dominated by the Atlantic Ocean; and (in the inner areas) a rather extreme climate with hotter summers and colder winters than nearer the coasts. The generally warm and relatively dry summers have led to a culture in which a lot of life is lived outdoors, whether on a patio in the courtyard of a building or on a public plaza. In Madrid, many of the most popular nightclubs move for several months in the summer to an outdoor terrasa much farther from the center of town than their indoor winter location, continuing in a way the older tradition of the verbena (fair). In the Mediterranean areas (and in the Canary Islands), outdoor meals can be a nearly year-round phenomenon.

The latter years of Franco's rule saw some economic and political liberalization, the so-called Spanish Miracle, including the birth of a tourism industry. Francisco Franco ruled until his death on November 20th 1975 when control was given to King Juan Carlos. In the last few months before Franco's death, the Spanish state went into a paralysis. This was capitalized upon by King Hassan of Morocco, who ordered the 'Green March' into Western Sahara, Spain's last colonial possession.

The first governments of the Republic, were center-left, headed by Niceto Alcalá-Zamora, and Manuel Azaña. In 1933, the right-wing CEDA won power; an armed rising of workers of October 1934, which reached its greatest intensity in Asturias and Catalonia, was forcefully put down by the CEDA government.

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.

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.

Philip V, the first Bourbon king, of French origin, signed the Decreto de Nueva Planta in 1715, a new law that revoked most of the historical rights and privileges of the different kingdoms that conformed the Spanish Crown, unifying them under the laws of Castile, where the Cortes had been more receptive to the royal wish. Spain became culturally and politically a follower of France. The rule of the Spanish Bourbons continued under Ferdinand VI and Charles III. His son Carlos IV was truly incompetent (some say mentally handicapped), and under his reign Spain fell to the armies of Napoleon.

As recently as the mid-20th-century, much of Spain (especially outside of the major cities) remained quite distinct from the rest of Europe. In 1954, V.S. Pritchett could still write of small Spanish towns, "The inn, if there is one, will not be a hotel, nor even a fonda — the Arab word — but perhaps a posada: a place one can ride into with a mule or a donkey, where one can stable an animal and lie down oneself on a sack of straw, the other side of the stall." [Pritchett, 1954 p. 46-47] However, especially since the 1975 death of Francisco Franco, Spain has become increasingly European; Pritchett's rustic posada would be unimaginable today.

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 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.