Spain was an internationally isolated country during General Franco’s rule. Since democratization in 1975, the aim of Spain’s foreign relations has been to resume normal relations and establish alliances with the rest of the world. Spain became a member of NATO in 1982, in its attempt to integrate itself with the major Western powers of the world. It remains a full member of the North Atlantic Council and its subordinate organizations, is an observer on the Nuclear Planning Group, is a member of the Defense Planning Committee and the Military Committee, and appoints military representatives to NATO. But Spanish forces can be commanded only by Spanish officers, and no troops can be deployed outside of Spain on a sustained basis.

Membership in the European Union, since 1986, is an important part of Spain’s foreign policy. The membership has ensured political stability, and has boosted economic development in the country. Spain is playing an increasingly proactive role within the EU, which has improved its international standing. One of the major objectives of Spain's foreign policy has been to prioritize relations with its erstwhile colonies in Latin America.

Economic investments, diplomatic initiatives, technical cooperation programmes and cultural exchanges are a regular feature of Spain’s foreign policy. Spain’s King and prime ministers make frequent trips to the region. A unique feature of the policy has been to treat the region as a whole instead of dealing with individual countries, emphasizing a multilateral rather than a bilateral approach. Spain’s importance in the EU derives largely from the influence it exerts in Latin America, and conversely, having European ties strengthens Spain’s role in Latin America.

Spain’s foreign policy also continues to focus attention on North Africa, especially Morocco. Cueta and Melilla on the northern coast of Africa are still Spanish possessions, and a bone of contention between Spain and Morocco. Relations have been further strained by migrations, drug trafficking and debates over fishing rights along the Moroccan coast. Spanish sympathy for the Sahrawi population of Western Sahara, a former Spanish colony under Moroccan control since 1975, is another cause of friction between Spain and Morocco. Yet Morocco continues to enjoy preferential treatment from Spain. Spain maintains a large aid initiative in its former colony, Equatorial Guinea. More recently, Madrid has established ties with Senegal, Mauritania, Mali and others to find solutions for the issue of illegal immigration to the Canary Islands. Spain influences trade and aid offers made by the EU towards these African states.

Spain’s foreign policy frequently supports Arab positions on Middle East issues. Spain is dependent on the Arab counties for oil and gas imports, and several Arab nations have substantial investments in Spain. For years, Spain was the only West European country that did not recognize Israel. That changed in January 1986, but, in the face of Arab criticism, Spain also accorded diplomatic status to the Palestine Liberation Organization (PLO) mission in Madrid in August 1986.