Francoist Spain remained officially neutral during World War II but maintained close political and economic ties to Nazi Germany and Fascist Italy throughout the period of the Holocaust. Before the war, Francisco Franco had taken power in Spain at the head of a coalition of fascist, monarchist, and conservative political factions in the Spanish Civil War (1936–1939) with the aid of German and Italian military support. He was personally sympathetic to aspects of Nazi ideology including its anti-communism and anti-Semitism. It appeared possible that Spain might enter into an alliance with the Axis powers in 1940 and 1941. In this period, Franco's regime compiled a register of Jews resident in Spain and added Jewish identity to its official identity documents. Other pre-existing anti-Jewish measures remained in force.
The regime failed to protect the vast majority of Spanish Sephardic Jews living in German-occupied Europe, though it permitted 20,000 to 35,000 Jews to travel through Spain on transit visas from Vichy France. In the post-war years, the Franco regime cultivated the idea that it had acted to protect Jews across Europe as a means to improve diplomatic relations with the former Allied powers.