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The location of the story is Spain, and hence the name of the movie. The story revolves around Charlie (Dileep), an illegal immigrant stranded in Madrid. To make things worse, he is conversant only in Malayalam. He gets a job as a cook in an Indian restaurant,as he has some experience in running a roadside eatery in his homeland, run by an expatriate, Majid. In the restaurant he is assigned with the task of serving up various types of dosas and, he comes up with a local variant named Spanish Masala. This turns out to be his passport to employment in the home of an ex-diplomat, who had earlier served in India. Here he meets the diplomat's daughter Camilla (Daniela Zacherl), who is visually impaired. She becomes a big time fan of Charlie's Spanish Masala. She is not on talking terms with her father, who is believed to have killed her Indian lover, Rahul (Kunchacko Boban), the son of her Malayali nanny, from whom she has learnt to speak Malayalam. Later Camilla starts to get closer to Charlie. Since he can imitate anyone's voice, one servant Pappan (Nelson) leads him to imitate Rahul's voice and keep Rahul's memory alive. After sometime, she recovers and starts seeing everything, but to see her, her dad is no more. A strange incident occurs when Rahul arrives for his funeral. One day, as per Menon's (Biju Menon) instruction, Charlie cleans Señor (Camilla's Dad)'s room. He finds a CD which Señor had seen before he died, and from that he finds out that Rahul was sent to Portugal to avoid the relationship between Camilla and Rahul, by paying him money by Señor. Again Rahul is spared by Charlie. As it goes, one day Menon enters a bar where he sees Rahul and another girl dancing together. He went to interrogate about it by following him, when he saw Rahul sitting with some goons and the girl. Later he researched on it, when he came to know that it wasn't a good life for Rahul in Portugal. He sold the factory which Señor offered him and he had taken loan from some goons...