To the west, Spain borders Portugal, to the south, it borders Gibraltar (a British overseas territory) and Morocco, through its cities in North Africa (Ceuta and Melilla). To the northeast, along the Pyrenees mountain range, it borders France and the tiny principality of Andorra. It also includes the Balearic Islands in the Mediterranean Sea, the Canary Islands in the Atlantic Ocean and a number of uninhabited islands on the Mediterranean side of the strait of Gibraltar, known as Plazas de soberanía, such as the Chafarine islands, the isle of Alborán, the "rocks" (peñones) of Vélez and Alhucemas, and the tiny Isla Perejil. In the northeast along the Pyrenees, a small exclave town called Llívia in Catalonia is surrounded by French territory.

There are several competing hypotheses as to the origin of the Roman name "Hispania", the root of the Spanish name España and the English name Spain. These hypotheses are based on slender evidence and must be treated cautiously.