This chapter presents an overview of think tanks in Spain and Portugal. The development of think tank-like entities has been greater in Spain due to its larger economy and population, because it has gone further on the road to "de-statization" than Portugal. The two countries that share the Iberian Peninsula, Spain and Portugal, also share a long history of intermittent cooperation and conflict typical of two neighbors. Portugal and Spain are two relatively poor members of the European Union (EU), with income levels around 60-70 percent of the EU average. The fact is that in both Iberian countries civil societies are relatively underdeveloped in comparison with other parts of western Europe. One of the most pressing challenges for think tanks in the Iberian countries is to develop a sustainable financial base, while at the same time maintaining a minimum of independence. Assuring this balance is critical for their survival and relevance.