Hungarian and Spanish paprika differ in flavor. Hungarian paprika has a sweet taste, and Spanish paprika has a smoky taste. The spices also differ in the way they are made.
Red capsicum peppers are air-dried and ground to make Hungarian paprika. In Spain, similar types of red capsicum peppers are dried over burning oak wood to make paprika. Smoking gives the Spanish version its distinct flavor.
Hungarian paprika has a mild flavor and is used to add color to deviled eggs and salads. Spanish paprika has a strong flavor and is used to enhance paella, sausages, stews and other meat dishes.