Hispanic is used to refer to modern Spain, to the Spanish language, and to the Spanish-speaking nations of the world, particularly the Americas, Pacific Islands and Asia, such as the Philippines and Guam.  Spanish is used to refer to the people, nationality, culture, language and other things of Spain.
When I moved to the US in 2009, because I am from Spain I was labeled Hispanic or Latino, a category that has been used by the US government from the 1970s to define the people from Spanish ...
The terms Latin (or Latino) and Hispanic as people from Latin America are only used in the United States. In Spanish, people from Colombia, Spain, Argentina, Peru or Equatorial Guinea, or from any other country, do not call themselves neither Latino nor Hispanic.
Bobert_McCloud, yes, Spanish people are European, are White and are Hispanic. You see, European is geographic identity, White is a racial identity, and Hispanic is a broad ethnic idenitity. People from Spain of course belong to the Spanish culture and the Spanish culture falls under the Hispanic culture category.
Both of my parents are from Spain. I have brown hair with natural highlights and brown eyes. Overall, my complexion is white. We now live in California. People ask me why I speak Spanish when I'm white and I tell them I'm from Spain. When I have to fill out surveys and stuff, they ask me to check a box saying if I'm hispanic, or non-hispanic white.
Spain is a Western European country, and indeed, there is no difference between a European from Spain or a European from France or Germany. The term “hispanic” or “Latino” makes reference to those of South American descend who speak Spanish because their countries once belonged to the kingdom of Spain, but who are not caucasian.
People in Spain would not say they're Hispanic, because they wouldn't be speaking in English. (See my post above about how the English word "Hispanic" does not mean the same in the US as the Spanish word "hispano" means in Spain.) People in America do not mean Spaniards when they say someone is Hispanic.
The Hispanic–Latino naming dispute is an ongoing disagreement over the use of the ethnonyms "Hispanic" and "Latino" to refer collectively to the inhabitants of the United States who are of Latin American or Spanish origin—that is, Latino or Hispanic Americans. The usage of both terms has changed to adapt to a wide range of geographical and historical influences.
People from Spain, don't really like the usage of the term "Hispanic". People from Cuba, Jamaica, Puerto Rico are all Hispanics too. It's a race, not really an ethnicity there are black Hispanics ...
The Office of Management and Budget describes Hispanic or Latino ethnicity as "a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of ...