Charles V's only legitimate son, Philip II of Spain (r. 1556–98) parted the Austrian possessions with his uncle Ferdinand. Philip treated Castile as the foundation of his empire, but the population of Castile (that was about a third of France's) was never great enough to provide the soldiers needed to support the Empire. When he married Mary Tudor, England was allied to Spain.



Spain was not yet at peace, as the aggressive Henry II of France came to the throne in 1547 and immediately renewed conflict with Spain. Charles's successor, Philip II, aggressively prosecuted the war against France, crushing a French army at the Battle of St. Quentin in Picardy in 1558 and defeating Henry again at the Battle of Gravelines. The Peace of Cateau-Cambrésis, signed in 1559, permanently recognized Spanish claims in Italy. In the celebrations that followed the treaty, Henry was killed by a stray splinter from a lance. France was stricken for the next thirty years by chronic civil war and unrest (see French Wars of Religion) and removed from effectively competing with Spain and the Habsburg family in European power games. Freed from effective French opposition, Spain saw the apogee of its might and territorial reach in the period 1559–1643.

The opening for the Genoese banking consortium was the state bankruptcy of Philip II in 1557, which threw the German banking houses into chaos and ended the reign of the Fuggers as Spanish financiers. The Genoese bankers provided the unwieldy Habsburg system with fluid credit and a dependably regular income. In return the less dependable shipments of American silver were rapidly transferred from Seville to Genoa, to provide capital for further ventures.

Florida was colonized in 1565 by Pedro Menendez de Aviles when he founded Saint Augustine, Florida and then promptly defeated an illegal attempt led by the French Captain Jean Ribault and 150 of his countrymen to establish a French foothold in Spanish Florida territory. Saint Augustine quickly became a strategic defensive base for the Spanish ships full of gold and silver being sent to Spain from its New World dominions. On April 27, 1565, the first permanent Spanish settlement in the Philippines was founded by Miguel López de Legaspi and the service of Manila Galleon was inaugurated. Manila was established in 1572.



After Spain's victory over France and the beginning of France's religious wars, Philip II's ambitions grew. In 1565, the Spanish defeated an Ottoman landing on the strategic island of Malta, defended by the Knights of St. John. Suleiman the Magnificent's death the following year and his succession by his less capable son Selim the Sot emboldened Philip, and he resolved to carry the war to the sultan himself. In 1571, Spanish and Venetian warships, joined by volunteers across Europe, led by Charles's illegitimate son Don John of Austria annihilated the Ottoman fleet at the Battle of Lepanto, in one of the most decisive battles in naval history. The battle ended the threat of Ottoman naval hegemony in the Mediterranean. This mission marked the height of the respectability of Spain and its sovereign abroad as Philip bore the burden of leading the Counter-Reformation.

The time for rejoicing in Madrid was short-lived. In 1566, Calvinist-led riots in the Netherlands prompted the Duke of Alva to march into the country and restore order. In 1568, William the Silent led a failed attempt to drive Alva from the Netherlands. These battles are generally considered to signal the start of the Eighty Years' War that ended with the independence of the United Provinces. The Spanish, who derived a great deal of wealth from the Netherlands and particularly from the vital port of Antwerp, were committed to restoring order and maintaining their hold on the provinces. In 1572, a band of rebel Dutch privateers known as the watergeuzen ("Sea Beggars") seized a number of Dutch coastal towns, proclaimed their support for William and denounced the Spanish leadership.



For Spain, the war became an endless quagmire, sometimes literally. In 1574, the Spanish army under Luis de Requeséns was repulsed from the Siege of Leiden after the Dutch broke the dykes, thus causing extensive flooding. In 1576, faced with the bills from his 80,000-man army of occupation in the Netherlands, the cost of his massive fleet that had won at Lepanto, together with the growing threat of piracy in the open seas reducing his income from his American colonies Philip was forced to accept bankruptcy. The army in the Netherlands mutinied not long after, seizing Antwerp and looting the southern Netherlands, prompting several cities in the previously peaceful southern provinces to join the rebellion. The Spanish chose the route of negotiation, and pacified most of the southern provinces again with the Union of Arras in 1579.

The Arras agreement required all Spanish troops to leave these lands. In 1580, this gave King Philip the opportunity to strengthen his position when the last member of the Portuguese royal family, Cardinal Henry of Portugal, died. Philip asserted his claim to the Portuguese throne and in June sent the Duke of Alba with an army to Lisbon to assure his succession. Though the Duke of Alba and the Spanish occupation, however, was little more popular in Lisbon than in Rotterdam, the combined Spanish and Portuguese empires placed into Philip's hands almost the entirety of the explored New World along with a vast trading empire in Africa and Asia. In 1582, when Philip II moved his court back to Madrid from the Atlantic port of Lisbon where he had temporarily settled to pacify his new Portuguese kingdom, the pattern was sealed, in spite of what every observant commentator privately noted: "Sea power is more important to the ruler of Spain than any other prince" wrote a commentator, "for it is only by sea power that a single community can be created out of so many so far apart." A writer on tactics in 1638 observed, "The might most suited to the arms of Spain is that which is placed on the seas, but this matter of state is so well known that I should not discuss it, even if I thought it opportune to do so." (quoted by Braudel 1984)



Portugal required an extensive occupation force to keep it under control, and Spain was still reeling from the 1576 bankruptcy. In 1584, William the Silent was assassinated by a half-deranged Catholic, and the death of the popular Dutch resistance leader was hoped to bring an end to the war. It did not. In 1586, Queen Elizabeth I of England, sent support to the Protestant causes in the Netherlands and France, and Sir Francis Drake launched attacks against Spanish merchants in the Caribbean and the Pacific, along with a particularly aggressive attack on the port of Cadiz. In 1588, hoping to put a stop to Elizabeth’s meddling, Philip sent the Spanish Armada to attack England. Favorable weather, smaller more manœuverable English ships, and the fact that England had been warned by their spies in Netherland and were ready for the attack resulted in defeat for the outnumbered but more heavily armoured Armada of Spain. Nevertheless the defeat of the massive military attack, The Drake–Norris Expedition, 1589 marked a turning point in the 1585–1604 Anglo–Spanish War in Spain's favour, and few can doubt that the Spanish fleet was the strongest in Europe until the Dutch fleet inflicted the defeat of the Battle of the Downs in 1639, when an increasingly exhausted Spain began to visibly weaken.



Spain had invested itself in the religious warfare in France after Henry II’s death. In 1589, Henry III, the last of the Valois lineage, died at the walls of Paris. His successor, Henry IV of Navarre, the first Bourbon king of France, was a man of great ability, winning key victories against the Catholic League at Arques (1589) and Ivry (1590). Committed to stopping Henry of Navarre from becoming King of France, the Spanish divided their army in the Netherlands and invaded France in 1590.

Olivares was a man sadly out of time; he realized that Spain needed to reform, and to reform it needed peace. The destruction of the United Provinces of the Netherlands was added to his list of necessities because behind every anti-Habsburg coalition there was Dutch money: Dutch bankers stood behind the East India merchants of Seville, and everywhere in the world Dutch entrepreneurship and colonists undermined Spanish and Portuguese hegemony. Spinola and the Spanish army were focused on the Netherlands, and the war seemed to be going in Spain's favor.

1627 saw the collapse of the Castilian economy. The Spanish had been debasing their currency to pay for the war and prices exploded in Spain just as they had in previous years in Austria. Until 1631, parts of Castile operated on a barter economy as a result of the currency crisis and the government was unable to collect any meaningful taxes from the peasantry, depending on its colonies. The Spanish armies in Germany resorted to "paying themselves" on the land. Olivares, who had backed certain tax measures in Spain pending the completion of the war, was further blamed for an embarrassing and fruitless war in Italy The Dutch, who during the Twelve Years' Truce had made their increasingly potent navy (see Battle of Gibraltar, 1607) a priority, devastated Spanish maritime trade, on which Spain was wholly dependent after the economic collapse. Spanish military resources were now fully stretched across Europe and also at sea protecting their maritime trade against the greatly improved Dutch fleet. In 1628 the Dutch captain Piet Hein captured the treasure fleet, badly undermining Spain's economy, while consolidating that of the Netherlands. The Spanish were simply no longer able to cope effectively with the growing naval threats, not only from the Netherlands but from France and England while still maintaining a strong naval presence in the Mediterranean to defend against the threat of the Ottoman navy and Muslim pirates. The Portuguese part of the empire was particularly afflicted by raids upon shipping and assaults upon trading posts and territories.

In 1630, Gustavus Adolphus of Sweden, one of history's most noted commanders, landed in Germany and relieved the port of Stralsund that was the last stronghold on the continent held by German forces belligerent to the Emperor. Gustavus then marched south winning notable victories at Breitenfeld and Lützen, attracting greater support for the Protestant cause the further he went. The situation for the Catholics improved with Gustavus's death at Lutzen in 1632 and a key victory at Nordlingen in 1634. From a position of strength, the Emperor approached the war-weary German states with a peace in 1635; many accepted, including the two most powerful, Brandenburg and Saxony. Then France entered.



Cardinal Richelieu had been a strong supporter of the Dutch and Protestants since the beginning of the war, sending funds and equipment in an attempt to stem Habsburg strength in Europe. Richelieu decided that the recently-signed Peace of Prague was contrary to French designs and declared war on the Holy Roman Emperor and Spain within months of the peace being signed. The more experienced Spanish forces scored initial successes; Olivares ordered a lightning campaign into northern France from the Spanish Netherlands, hoping to shatter the resolve of King Louis XIII's ministers and topple Richelieu. In the "", 1636, Spanish forces advanced as far south as Corbie, threatening Paris and quite nearly ending the war on their terms. After 1636, however, Olivares stopped the advance, fearful of provoking another disastrous bankruptcy. The hesitation in pressing home the advantage proved fateful. The Spanish army would never again penetrate so far. At the Battle of the Downs in 1639 a Spanish fleet carrying troops was destroyed by the Dutch navy, and the Spanish found themselves unable to adequately supply and reinforce their forces in the Netherlands. The Spanish Army of Flanders, which represented the finest of Spanish soldiery and leadership, faced a French invasion led by Louis II de Bourbon, Prince de Condé in the Spanish Netherlands at Rocroi in 1643. The Spanish, led by Francisco de Melo, were devastated, with most of the Spanish infantry slaughtered or captured by French cavalry. The high reputation of the Army of Flanders was broken at Rocroi, and with it, the grandeur of Spain.

Traditionally, historians mark the Battle of Rocroi (1643) as the end of Spanish dominance in Europe but the war was not finished. Supported by the French, the Catalans, Neapolitans, and Portuguese rose up in revolt against the Spanish in the 1640s. With the Netherlands effectively lost after the Battle of Lens in 1648, the Spanish made peace with the Dutch and recognized the independent United Provinces in the Peace of Westphalia that ended both the Eighty Years' War and the Thirty Years' War.

War with France continued for eleven more years. Although France suffered from a civil war from 1648–52 (see Wars of the Fronde) the Spanish economy was so exhausted that it was unable to effectively cope with war on so many fronts. Yet the decline of Spanish power in this period has often been overstated. Spain retook Naples in 1648 and Catalonia in 1652, but the war came to an end at the Battle of the Dunes (1658) where the French army under Vicomte de Turenne defeated the remnants of the Spanish army of the Netherlands. Spain agreed to the Peace of the Pyrenees in 1659 that ceded to France Roussillon, Foix, Artois, and much of Lorraine.


Portugal had rebelled in 1640 under the leadership of John IV of Portugal, a Braganza pretender to the throne. He had received widespread support from the Portuguese people, and the Spanish — who had to deal with rebellions elsewhere, along with the war against France – were unable to respond, and the Spanish and Portuguese had existed in a de facto state of peace from 1644 to 1657. When John IV died in 1657, the Spanish attempted to wrest Portugal from his son Alfonso VI of Portugal, but were defeated at Ameixial (1663) and Monte Claros (1665), leading to Spain's recognition of Portugal's independence in 1668.

Spain did have a huge overseas empire, but France was now the superpower in Europe, and the United Provinces in the Atlantic.

Charles II and his regency were incompetent in dealing with the War of Devolution that Louis XIV of France prosecuted against the Spanish Netherlands in 1667–68, losing considerable prestige and territory, including the cities of Lille and Charleroi. In the Nine Years' War Louis once again invaded the Spanish Netherlands. French forces led by the Duke of Luxembourg defeated the Spanish at Fleurus (1690), and subsequently defeated Dutch forces under William III of Orange, who fought on Spain's side. The war ended with most of the Spanish Netherlands under French occupation, including the important cities of Ghent and Luxembourg. The war revealed to Europe how vulnerable and backward the Spanish defenses and bureaucracy were, but the ineffective Spanish Habsburg government took no action to improve them.



The final decades of the seventeenth century saw utter decay and stagnation in Spain; while the rest of western Europe went through exciting changes in government and society — the Glorious Revolution in England and the reign of the Sun King in France — Spain remained adrift. The Spanish bureaucracy that had built up around the charismatic, industrious, and intelligent Charles I and Philip II demanded a strong and hardworking monarch; the weakness and lack of interest of Philip III and IV contributed to Spain's decay. Charles II was retarded and impotent. In his final will, the childless king of Spain left his throne to the Bourbon prince Philip of Anjou, rather than to a member of the family that had tormented him throughout his life. This resulted in the War of the Spanish Succession.

The first major territory Spain was to lose in the nineteenth century was the vast and wild Louisiana Territory, which stretched north to Canada and was ceded by France in 1763. The French, under Napoleon, took back possession as part of the Treaty of San Ildefonso in 1800 and sold it to the United States (Louisiana Purchase, 1803).

The destruction of the main Spanish fleet, under French command, at the Battle of Trafalgar (1805) undermined Spain's ability to defend and hold on to its empire. The later intrusion of Napoleonic forces into Spain in 1808 (see Peninsular War) cut off effective connection with the empire. But it was internal tensions that ultimately ended the empire in the Americas.

Napoleon's sale in 1803 of the Louisiana Territory to the United States was to cause border disputes between the United States and Spain that, with rebellions in West Florida (1810) and in the remainder of Louisiana at the mouth of the Mississippi, led to their eventual cession to the United States, along with the sale of all of Florida, in the Adams–Onís Treaty (1819).


In 1808 the Spanish king was tricked and Spain was taken over by Napoleon without firing a shot, but the unpopular French provoked a popular uprising from the Spanish people and the grinding guerrilla warfare, which Napoleon dubbed his "ulcer", the Peninsular War, (famously depicted by the painter Goya) ensued, followed by a power vacuum lasting up to a decade and turmoil for several decades, civil wars on succession disputes, a republic, and finally a corrupt liberal democracy. Spain lost all the colonial possessions in the first third of the century, except for Cuba, Puerto Rico and, isolated on the far side of the globe, the Philippines, Guam and nearby Pacific islands, as well as Spanish Sahara, parts of Morocco, and Spanish Guinea.

The wars of independence in the Americas were triggered by another failed British attempt to seize Spanish American territory, this time in the Viceroyalty of the Río de la Plata in 1806. The viceroy retreated hastily and disgracefully to the hills when defeated by a small British force. However when the Criollos militias and colonial army thrashed the now reinforced British force in 1807 and, with the example of the North American revolutionaries very much in their minds, they quickly set about the business of winning their own independence and inspiring independence movements elsewhere in the Americas. A long period of wars began which led to the independence of Paraguay (1811), Uruguay (1815, but subsequently ruled by Brazil until 1828), Argentina (1816) and Chile (1818). Further north Simon Bolivar led forces that won independence for the area that is currently Venezuela, Colombia (included Panama until 1903), Ecuador, Peru and Bolivia by 1825. In 1810 a free thinking priest, Miguel Hidalgo y Costilla, declared Mexican independence, which was won by 1821. Central America declared its independence in 1821 and was joined to Mexico for a brief time (1822–23). Santo Domingo likewise declared independence in 1821 and began negotiating for inclusion in Bolivar's Republic of Gran Colombia, but was quickly occupied by Haiti, which ruled it until an 1844 revolution. Thus only Cuba and Puerto Rico remained in Spanish hands in the New World.



In devastated Spain the post-Napoleonic era created a political vacuum, broke apart any traditional consensus on sovereignty, fragmented the country politically and regionally and unleashed wars and disputes between progressives, liberals and the reactionaries. The instability inhibited Spain's development, which had started fitfully gathering pace in the previous century. A brief period of improvement occurred in the 1870s when the capable Alfonso XII of Spain and his thoughtful ministers succeeded in restoring some vigour to Spanish politics and prestige, but this was cut short by Alfonso's early death.



An increasing level of nationalist, anti-colonial uprisings in various colonies culminated with the Spanish–American War of 1898 in which Spain came into conflict with the United States over Cuba. Military defeat was followed by the independence of Cuba and the cession, for US$20 million, of Puerto Rico, the Philippines, and Guam to the United States. Her American presence ended, Spain then sold her Pacific Ocean possessions to Germany in 1899, retaining only her African territories.

In 1481 the papal Bull Æterni regis had granted all land south of the Canary Islands to Portugal. Only this archipelago and the cities of Sidi Ifni (1476–1524), known then as "Santa Cruz de Mar Pequeña", Melilla (conquered by Pedro de Estopiñán in 1497), Villa Cisneros (founded in 1502 in current Western Sahara), Mazalquivir (1505), Peñón de Vélez de la Gomera (1508), Oran (1509–1790), Algiers (1510–29), Bugia (1510–54), Tripoli (1511–51), Tunis (1535–69) and Ceuta (ceded by Portugal in 1668) remained as Spanish territory in Africa.

In 1778, Fernando Póo (now Bioko) Island, adjacent islets, and commercial rights to the mainland between the Niger and Ogoue Rivers were ceded to Spain by the Portuguese in exchange for territory in South America (Treaty of El Pardo). In the 19th century, some Spanish explorers and missionaries would cross this zone, among them Manuel de Iradier.

In 1848, Spanish troops conquered the Islas Chafarinas.

In 1860, after the Tetuan War, Morocco ceded Sidi Ifni to Spain as a part of the Treaty of Tangiers. The following decades of Franco-Spanish collaboration resulted in the establishment and extension of Spanish protectorates south of the city, and Spanish influence obtained international recognition in the Berlin Conference of 1884: Spain administered Sidi Ifni and Western Sahara jointly. Spain claimed a protectorate over the coast of Guinea from Cape Bojador to Cap Blanc, too. Río Muni became a protectorate in 1885 and a colony in 1900. Conflicting claims to the Guinea mainland were settled in 1900 by the Treaty of Paris.

Following a brief war in 1893 Spain expanded her influence south from Melilla.



In 1911, Morocco was divided between the French and Spanish. The Rif Berbers rebelled led by Abdelkrim, a former officer for the Spanish administration. The Disaster of Annual (1921) was a sudden, grave, and almost fatal, military defeat suffered by the Spanish army against Moroccan insurgents. A leading Spanish politician emphatically declared: "We are at the most acute period of Spanish decadence". The statement reflected the mood of the country. The rebellion exposed the utter corruption and incompetence of the military and destabilised the Spanish government, leading to dictatorship. A campaign in conjunction with the French suppressed the Rif rebels by 1925 but at a terrible cost to both sides. In 1923, Tangier was declared an international city under French–Spanish–British (and later Italian) joint administration. The African army, led by a veteran of the Moroccan campaign, Francisco Franco, started the Spanish Civil War (1936–39). Between 1926 and 1959, Bioko and Rio Muni were united as the colony of Spanish Guinea. During the Second World War the Vichy French presence in Tangier was overcome by that of Francoist Spain.

Spain lacked the wealth and the interest to develop an extensive economic infrastructure in her African colonies during the first half of the 20th century. However, through a paternalistic system, particularly on Bioko Island, Spain developed large cocoa plantations for which thousands of Nigerian workers were imported as laborers. The Spanish also helped Equatorial Guinea achieve one of the continent's highest literacy rates and developed a good network of health care facilities.

In 1956, when French Morocco became independent, Spain surrendered Spanish Morocco to the new nation, but retained control of Sidi Ifni, Tarfaya region and Spanish Sahara. Moroccan Sultan (later King) Mohammed V was interested in these territories and invaded Spanish Sahara in 1957 (The Ifni War, or, in Spain, the Forgotten War, ). In 1958, Spain ceded Tarfaya to Mohammed V and joined the previously separate districts of Saguia el-Hamra (in the north) and Río de Oro (in the south) to form the province of Spanish Sahara.

In 1959, the Spanish territory on the Gulf of Guinea was established with status similar to the provinces of metropolitan Spain. As the Spanish Equatorial Region, it was ruled by a governor general exercising military and civilian powers. The first local elections were held in 1959, and the first Equatoguinean representatives were seated in the Spanish parliament. Under the Basic Law of December 1963, limited autonomy was authorized under a joint legislative body for the territory's two provinces. The name of the country was changed to Equatorial Guinea.

In March 1968, under pressure from Equatoguinean nationalists and the United Nations, Spain announced that it would grant independence to Equatorial Guinea. At independence in 1968, Equatorial Guinea had one of the highest per capita incomes in Africa. In 1969, under international pressure, Spain returned Sidi Ifni to Morocco. Spanish control of Spanish Sahara endured until the 1975 Green March prompted a withdrawal. The future of this former Spanish colony remains uncertain.

The Canary Islands and the cities in the African mainland are considered an equal part of Spain and the European Union, but have a different tax system without Value Added Tax.

Morocco still claims the Canary Islands, Ceuta, Melilla and to be part of Morocco (see Greater Morocco for further information) . Isla Perejil (Arabic: ("night")) was occupied on July 11, 2002 by Moroccan Gendarmerie and troops, who were evicted without bloodshed by Spanish naval forces.