With six wins prior to Sunday's final, Spain were by far the most consistent side in the competition and their imagination and skill, as well as a Fernando Torres goal in the 33rd minute, was enough to see them crowned champions.
Spain's coach, Luis Aragones, said after the match: "This is a happy day for Spain - we've won this tournament in style."
Aragones praised Torres, the game's only scorer following a superb pass by Xavi Hernandez, saying: "He could be one of the best players in the world, no doubt."
And in the capital Madrid and across the country, Spaniards partied all night long celebrating their historic win.
Spanish King Juan Carlos, who watched the match along with Queen Sofia and the country's Prime Minister Jose Luis Rodriguez Zapatero, told national TV: "We suffered, but in the end, it was worth all the pain."
On their way to the final Spain defeated Russia twice, in the group stages and in the semifinals, as well as beating world champion's Italy in a tense quarter-final penalty shoot out on June 22.