The Spanish Football Federation have been fined 100,000 Swiss francs (€64,867) by FIFA for the racist chanting at the friendlies involving England last month.
Several England players were racially abused during their 1-0 defeat by Spain at the Bernabeu Stadium in Madrid on November 17.
That followed incidents of a similar nature during the under-21 international between the same two countries the previous night.
The world governing body also warned the Spanish authorities about their future conduct.
They were told they could face the prospect of having to play matches behind closed doors or possible expulsion from one or more FIFA competitions if there is any repetition.
FIFA announced the punishment today after conducting a month-long investigation.
There was immediate outcry in England following the abuse of the players, and the Spanish authorities formally denounced the racism in a letter of apology to their English counterparts.
Spain's Anti-Violence Commission have recently outlined a plan of action to help eradicate racial prejudice, while the Spanish FA have also opened a disciplinary file against national coach Luis Aragones following his racist comments about Arsenal striker Thierry Henry, which were captured on camera.
Gordon Taylor, chief executive of the Professional Footballers' Association, said he believed the Spanish authorities had been dealt with leniently.
"I think the general feeling in England will be one that the sanction is far too lenient, and I would be one of those who thinks that way," Taylor said.
"The Spanish FA have been given a yellow card, not the red that many would have expected.
"But a point has been made by FIFA, and I have been encouraged by the comments of Sepp Blatter about racism - both after the game and at the World Player of the Year awards," he added.
Britain's Sports Minister Richard Caborn has also slammed the sanction as too lenient.
