The Iberian Peninsula, or Iberia, is located in the extreme southwest of Europe, and includes modern day Spain and Portugal. It is the western and southernmost of the three southern European peninsulas (the Iberian, Italian, and Balkan peninsulas).
It is bordered on the south and east by the Mediterranean Sea, and on the north and west by the Atlantic Ocean. The Pyrenees form the northeast edge of the peninsula, connecting it to the rest of Europe. In the south, it approaches the northern coast of Africa.
It is the third largest peninsula in Europe, with an area of 582,860 km². The name “Iberia” was also used since the times of ancient Greece and Rome for another territory at the opposite corner of Europe, Caucasian Iberia, in modern day Georgia.
Spain, officially the Kingdom of Spain (Spanish: España, Reino de España), is a country located in Southern Europe, with two small exclaves in North Africa (both bordering Morocco). The mainland of Spain is bounded on the south and east by Mediterranean Sea (containing the Balearic Islands), on the north by the Bay of Biscay and on the west by the Atlantic Ocean (containing the Canary Islands off the African coast). Spain shares land borders with Portugal, France, Andorra, Gibraltar and Morocco. It is the largest of the three sovereign states that make up the Iberian Peninsula — the others being Portugal and Andorra.
There are a number of hypotheses as to the origin of the Roman name “Hispania”, the root of the Spanish name España and the English name Spain.
Spain is a democracy which is organized as a parliamentary monarchy. It is a developed country with the ninth-largest economy in the world.
Portugal, officially the Portuguese Republic (Portuguese: República Portuguesa), located in southwestern Europe on the Iberian Peninsula, is the westernmost country of mainland Europe. Portugal is bordered by Spain to the north and east and by the Atlantic Ocean to the west and south. The Atlantic archipelagos of the Azores and Madeira are also part of Portugal.
The territory that forms the modern Portuguese Republic has witnessed a constant flow of civilizations during the past 3,100 years, since the earlier pre-Roman Iberian and Celtic inhabitants, to the Roman, Germanic and Moorish peoples who made an imprint on the country's culture, history, language, and ethnic composition.
During the 15th and 16th centuries, with its global empire, Portugal was one of the world’s major economic, political, and cultural powers. A developed country, Portugal is a member of the European Union (since 1986), the United Nations (since 1955), and a founding member of the Eurozone, OECD, NATO and CPLP (“Comunidade dos Paises de Lingua Portuguesa,” Community of Portuguese Language Countries).
Information compiled from Wikipedia and The World Factbook