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At present, Spain is a constitutional monarchy, and is comprised of 17 autonomous communities. One of the most important problems facing Spain today is ETA's terrorism - this illegal organization defends Basque independence through violent means, which is condemned by both Central and Basque government, although there is tension between these governments since PNV (the party presently governing Basque Country) longs for greater autonomy from Spain, including the possibility of independence, something Spanish government doesn't accept.

The dry weather of Spain resulted in the importance of water fountains in Spanish urban design. In addition, ceramics figure prominently in architecture throughout Spain, especially in the tile roofs and the use of decorative tiles known as azulejos.

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.

According to the latest official poll, 80% of Spaniards self-identify as Catholic, 12% as non-believer, and 1% as other (the remaining 7% declined to state). Of the 1.4% identifying as other, 29% identified as Evangelical Christian, 26% as Jehovah's Witnesses and 3% as Muslim (the rest either mentioned smaller religions or declined to state). According to the same poll, 73% believe in God, 14% don't and 12% are unsure (1% declined to state). Additionally, according to this poll, only 41% believe in Heaven. 24% of the Spaniards think that the Bible is just a fable. Only 25% of Catholics go to church at least once a week.

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.

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.

Under the Bonaparte, Spain failed to embrace the mercantile and industrial revolutions of the 18th century, and also failed to absorb the ideals that of the Enlightenment that were revolutionizing European thought. These missed opportunities, combined with the economic failures of the 17th century, caused the country to fall desperately behind Britain, France, and Germany in economic and political power.

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.

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.

The Napoleonic invasion gave the opportunity to the American colonies, led by Libertadores, to claim their independence. Between 1810 and 1824, Chile, Colombia, Ecuador, Venezuela, and the other colonies declared and won their independence. The only New World colonies Spain was left with were the islands of Cuba and Puerto Rico. The Allies fought Napoleon's forces in the Peninsular War, with Joseph Bonaparte ruling as king at Madrid. In 1812 the Cortes took refuge at Cádiz and created the first modern Spanish constitution, the Constitution of 1812 (informally named La Pepa).

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.

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.

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.

Historically, various regions of Spain had quite distinct regional dress. Today, most people in Spain dress in a manner comparable to most other contemporary Europeans, although some regional variations persist. Dress in Extremadura and in the smaller cities of Castile remains relatively austere, even on festive occasions, while Andaluz dress on festive occasions is elaborate and ostentatious. Barcelona is one of the most stylish cities in Europe, though more restrained and with a more determinedly timeless style than Paris or Milan.