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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.

The dictatorship of Miguel Primo de Rivera collapsed in 1930. Disgusted with the king's involvement in it, urban population voted for republican parties in the municipal elections of April 1931. The king was forced to resign and a republic was established.

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.

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".

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.

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.

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.

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.

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.

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.

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.

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.