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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.

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.

The original peoples of the Iberian peninsula (in the sense that they are not known to have come from elsewhere), consisting of a number of separate tribes, are given the generic name of Iberians. This may have included the Basques, the only pre-Celtic people in Iberia surviving to the present day as a separate ethnic group. The most important culture of this period is that of the city of Tartessos. Beginning in the 9th century BC, Celtic tribes entered the Iberian peninsula through the Pyrenees and settled throughout the peninsula, becoming the Celt-Iberians.

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.

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".

Spain is considered by many, including a large part of Spanish population, to be a group of nations unified under a single State, much like Belgium, Switzerland or the United Kingdom. Despite this, the policy of many Spanish governments has led to a "Spanish nationhood" which is the one people identify with Spain internationally.

Roman Catholicism is, by far, the most popular religion in the country, with four in five Spaniards (80%) self-identifying as Catholics. The next group (one in eight, or 12%) is represented by atheists or agnostics. Minority religions account for one in seventy (1.4%) of all Spaniards.

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 711, Arabs and Berbers had converted to Islam, a religion founded in the 7th century by prophet Muhammad and which by the 8th dominated all the north of Africa. A raiding party led by Tariq ibn-Ziyad was sent to intervene in a civil war in the Visigothic kingdoms in Iberia. Crossing the Strait of Gibraltar, it won a decisive victory in the summer of 711 when the Visigoth king Roderic was defeated and killed on July 19th at the Battle of Guadalete. Tariq's commander, Musa bin Nusair quickly crossed with substantial reinforcements, and by 718 the Muslims dominated most of the peninsula. The advance into Europe was stopped by the Franks under Charles Martel at the battle of Poitiers (France) in 732.

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.

Mistreatment of the Moorish population in Morocco led to an uprising and the loss of all North African possessions except for the enclaves of Ceuta and Melilla in 1921. Abd el-Krim, Annual. In order to avoid accountability, the king Alfonso XIII decided to support the dictatorship of general Miguel Primo de Rivera.

Spain remained officially neutral in World Wars I and II, but suffered through a devastating Civil War (1936-39). During Franco's rule, Spain remained largely economically and culturally isolated from the outside world, but slowly began to catch up economically with its European neighbors. Under Franco, Spain actively sought the return of Gibraltar by the UK, and gained some support for its cause at the United Nations. During the 1960s, Spain began imposing restrictions on Gibraltar, culminating in the closure of the border in 1969. It was not fully reopened until 1985.

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.

Madrid, the capital of Spain, is located in the center of the country. Population of the city of Madrid proper was 3,093,000 as of 2003 estimates.

Spain's natural surroundings have helped shape the culture of the nation. The success of the Basques in maintaining a separate culture over a period of millennia has doubtless been aided by the mountainous geography of their region. Several separate parts of Spain have strong maritime traditions, including inland ports on rivers: Seville, for example, was a major port until the Guadalquivir silted up. Since the availalability of mass air transport, Spain's Mediterranean beaches, especially those along the Costa del Sol, have drawn millions of tourists, providing considerable revenue (and enormous contact with the outside world) to a long-depressed and isolated area of the country.