Spain Spain, a country occupying the greater part of the Iberian Peninsula, and bounded on the north by the Bay of Biscay, France, and Andorra, and on the east by the Mediterranean Sea. The Balearic Islands in the Mediterranean and the Canary Islands in the Atlantic Ocean off the coast of Africa are governed as provinces of Spain. Also, Spain administers two small exclaves in Morocco—Ceuta and Melilla. The area of Spain, including the African and insular territories, is 194,885 sq mi. Madrid is the capital and largest city. Population The Spanish people are essentially a mixture of the indigenous peoples of the Iberian Peninsula with the successive peoples who conquered the peninsula