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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).

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.

Except for the subtropical Canary Islands, Spain can be divided into areas experiencing, respectively, a Mediterranean climate; a climate dominated by the Atlantic Ocean; and (in the inner areas) a rather extreme climate with hotter summers and colder winters than nearer the coasts. The generally warm and relatively dry summers have led to a culture in which a lot of life is lived outdoors, whether on a patio in the courtyard of a building or on a public plaza. In Madrid, many of the most popular nightclubs move for several months in the summer to an outdoor terrasa much farther from the center of town than their indoor winter location, continuing in a way the older tradition of the verbena (fair). In the Mediterranean areas (and in the Canary Islands), outdoor meals can be a nearly year-round phenomenon.

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 period of Visigothic rule saw the spread of Arianism briefly in Spain. In 587, Reccared, the Visigothic king at Toledo, having been converted to Catholicism put an end to dissension on the question of Arianism and launched a movement in Spain to unify the various religious doctrines that existed in the land. The Council of Lerida in 546 constrained the clergy and extended the power of law over them under the blessings of Rome.

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.

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.

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.