The capital and largest city is Madrid (population, 1998 estimate, 2,881,506), also the capital of Madrid autonomous region; the second largest city, chief port, and commercial center is Barcelona (1,505,581), capital of Barcelona province and Catalonia region. Other important cities include Valencia (739,412), capital of Valencia province and Valencia region, a manufacturing and railroad center; Seville (701,927), capital of Seville province and Andalusia region, a cultural center; Zaragoza (603,367), capital of Zaragoza province and Aragón region, another industrial center; and Bilbao (358,467), a busy port.

Spain has been invaded and inhabited by many different peoples. The peninsula was originally settled by groups from North Africa and western Europe, including the Iberians, Celts, and Basques. Throughout antiquity it was a constant point of attraction for the more advanced civilizations of the eastern Mediterranean. From about 1100 BC the Phoenicians, the Greeks, and the Carthaginians began to establish settlements and trading posts, especially on the eastern and southern coasts.