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The Romans arrived in the Iberian peninsula during the Second Punic war in the 2nd century B.C., and annexed it under Augustus after two centuries of war with the Celtic and Iberian tribes and the Phoenician, Greek and Carthaginian colonies becoming the province of Hispania. Some of Spain's present languages, religion, and laws originate from this Roman period.

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.

In the 1960s, more than a decade later than other western European countries, Spain began to enjoy economic growth and gradually transformed into a modern industrial economy with a thriving tourism sector. Growth continued well into the 1970s, with Franco's government going to great lengths to shield the Spanish people from the effects of the oil crisis.

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.

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".

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).

While the siesta — an hours-long mid-afternoon break from work — is generally in decline, the typical rhythm of the day in Spain remains relatively distinct from the European norm. Many shops and some museums (though relatively few other businesses) still split their hours into two distinct periods of opening with a two or three hour break in the middle; a paseo (stroll) in the early evening remains a common custom in many smaller cities and to some extent even in the larger ones; the dinner hour is the latest in Europe, typically about 10 p.m.; nightlife begins accordingly late, with many dance clubs (even in relatively small cities) opening at midnight and staying open until dawn; in Madrid in the summer there is nothing unusual about a live musical performance being scheduled for one or two o'clock in the morning.

Modern Spain began to take form during the Reconquista, the struggle between the Christian kingdoms arising in the northern regions left unconquered by the Moors and the Muslim kingdoms into which Al-Andalus eventually split.

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.

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.