Spanish Prime Minister Mariano Rajoy’s the People's Party has won the general election with 122 seats, with the 99 percent of the official data counted on Sunday.
According to the data, the People's Party has fallen short of the majority and will need its allies to get the majority of 176 in the 350 seat parliament, if it is to govern the country for another four-year term.
The opposition Socialists have come second with 91 seats, while newcomers anti-austerity Podemos and liberal Ciudadano registered big gains, coming in third and fourth place, breaking the two-party political system up and taking a great opportunity to create a new era for political consensus.
The official data showed Podemos has obtained 69 seats and Ciudadanos has gathered 40 seats in the parliament.
An agreement between the governing party and Ciudadanos will result in 162 seats, but it is not enough for a certain majority in the parliament.
"This result confirms Spain has entered an era of political fragmentation," said Teneo Intelligence analysts Antonio Barroso. "It's clear that parties will have to negotiate and forming a government could be pretty complicated."
Supporters of the anti-austerity Podemos Party took to the streets in Madrid and welcomed the official data which showed two year old party came in third place by passing the traditional left-wing faction, Spanish Socialist Workers' Party.
Young people chanted "Yes we can."
"It makes me happy because Podemos means a change for people and society," said Santiago Gel, one of the supporters of Podemos.