All Jews (including some of my ancestors) were kicked out of Spain in 1492.
As the last step in the 700 year effort to drive the Mohammedans out of Spain. The Spanish drove out the Mohammedans and, sadly, the Jews who lived under them. The desire to free the Iberian peninsula of Mohammedans should be understandable to Americans considering the events of 911.
A lengthier treatment here
In the Iberia of the reconquista a scenario of this kind presented a danger profoundly more serious than elsewhere. As the Christians slowly reestablished their hegemony over the peninsula - expressed in the two distinct political entities, Portugal and Spain - the potential antagonists of religious uniformity they were determined to impose were not indigenous eccentrics, as was the case in other European countries (bear in mind that the Protestant Reformation was at this moment still forty years in the future), but a conquered population linked by ties of race and religion to the Muslims living in the principalities of North Africa, which at Gibraltar lay only sixteen watery miles away. Even more ominous from the Spanish point of view was the fact that these so-called barbary states - the modern nations of Morocco, Algeria, and Tunisia - formed part of a vast imperial system established by the Muslim Turks, a system as powerful and menacing to western Europe as the Soviet bloc was conceived to be in our day. As the reconquista proceeded, therefore, and especially after Granada and the last remnant of Spanish Islam fell to the armies of Ferdinand and Isabella in 1492, policy-makers had to decide how to treat the Moors and the relatively small but influential Jewish community which, in marked contrast to what our century has witnessed, had flourished within a larger Islamic society. The Christian victors, fearful of Muslim sympathizers in their midst, offered no compromise: Moors and Jews had to accept baptism or face expulsion from the country now defined as entirely Catholic.What this decision amounted to, of course, was a policy of forced conversion, something quite incompatible with traditional Catholic teaching. This fact was pointed out by several popes and numerous Spanish theologians over a long period, but the sentiment expressed by one of Ferdinand of Aragon's royal predecessors was the one that prevailed: "The enemies of the cross of Christ and violators of the Christian law are likewise our enemies and the enemies of our kingdom, and ought therefore to be dealt with as such."
Predictably, however, the stark choice between conformity and exile invited pretense and hypocrisy on the part of those dragooned into a faith not of their own choosing. The Jews and Moors who conformed rather than depart the land in which they and their ancestors had lived for hundreds of years did so with varying measures of reluctance, merging often into downright dissimulation. And this is precisely why the Inquisition was created by the Spanish monarchs: as the etymology of the word implies, the first task of this new judicial body was inquiry, specifically inquiry into the authenticity of the conversion of the Moors and Jews who had come under the sway of those monarchs.
But once again we must stress the chronological track, because the bloody reputation of the Spanish Inquisition - though it formally existed for more than three centuries - was earned during its first decade and a half, even before, that is, the capture of Granada. During this unhappy period perhaps as many as 2000 persons were burnt as heretics. Though this number is only a small fraction of what the Black Legend routinely alleged, it is nevertheless sobering enough. Almost all those executed were conversos or New Christians, converts, that is, from Judaism who were convicted of secretly practicing their former religion. It should be borne in mind that the Inquisition, as a church-court, had no jurisdiction over Moors and Jews as such. But, ironically, once such persons accepted baptism they became capable of heresy in the technical sense of the word. Thus the early savagery of the Spanish Inquisition contributes another chapter to the sad history of anti-Semitism, motivated on this occasion, however, more by politico-religious expediency than by racial hatred. It was in any event an enormous and unforgivable miscalculation. Far from constituting a danger to the nation, the Jewish conversos of previous decades had already been admirably blended into the larger community. As Professor William Monter has pointed out, the New Christians "represent the first known large-scale and long-term assimilation of Jews into any Christian society. Although the process included many painful adaptations, some severe backlash and even a decade of brutal persecution under the Inquisition, it ended with their general integration into Spanish society. Their descendants quietly flouted racist codes and contributed to the vibrant Catholicism of Golden Age Spain; St. Teresa of Avila was the granddaughter of a New Christian penanced by the Inquisition."
It seems as though the violence with which the Spanish Inquisition began its tenure exhausted or perhaps shamed it into a moderation which the purveyors of the Black Legend stonily ignore. But the facts cannot be gainsaid. During the sixteenth and seventeenth centuries, when Spanish sovereignty extended from Italy to most of Latin America, on average less than three persons a year were executed by the Inquisition, which was formally constituted in all those places as well as at home. Or, to give the Spaniards the benefit of the doubt, perhaps as the bitter struggle of the reconquista gradually faded from their collective memory, even as the Muslim threat itself receded, they exercised a restraint consistent with their principles. However that may be, for my part I am glad there is no longer in existence an Inquisition that might have me arrested on the basis of charges lodged by persons unknown to me, as happened to St. Ignatius Loyola. Yet as one who has lived through most of a century in which cruelty and atrocity and oppression have reached a pitch, quantitatively and qualitatively, inconceivable to our ancestors - inconceivable even to Torquemada - I think a measure of discretion would be appropriate when bemoaning the wickedness of the Spanish Inquisition, more discretion anyway than that exercised by Poe and Dostoyevsky.