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The 20th century initially brought little peace; colonisation of Western Sahara, Spanish Morocco and Equatorial Guinea was attempted as a substitute for the loss of the Americas. A period of dictatorial rule (1923-1931) ended with the establishment of the Second Spanish Republic. The Republic offered political autonomy to the Basque Country and Catalonia and gave voting rights to women. However, with increasing political polarisation and pressure from all sides, coupled with growing and unchecked political violence, the Republic ended with the outbreak of the Spanish Civil War in July 1936. Following the victory of the nationalist forces in 1939, General Francisco Franco ruled a nation exhausted politically and economically until his death in 1975.

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.

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.

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.

With the approval of the Spanish Constitution of 1978 and the arrival of democracy, the old historic nationalities — Basque Country, Catalonia, Galicia and Andalusia— were given far-reaching autonomy, which was then soon extended to all Spanish regions, resulting in one of the most decentralized territorial organizations in Western Europe.

In order to understand the political forces and debates in Spain we have to consider two dimensions: the Right vs. Left dimension and the Nation State vs. Plurinational State dimension. The political parties agendas and the individual citizens opinions can only understood when situated on both dimensions. The Constitution of the Kingdom of Spain states that 1) it is a Nation and 2) that it is formed by Nationalities and Regions. This statement is a contradiction (since Nationality and Nation essentially mean the same thing in political theory), but it was an agreement that struck a balance between the political parties advocating the nation state and those advocating the plurinational state. The territorial organization of Spain into Autonomous Communities of Spain is the administrative realization of this constitutional balancing act.