During the Second World War, the Germans used the building as a repository for property taken from the Jews. The building underwent a restoration in the late 1990s.
The building is owned by the Jewish Museum of Prague, and is used as a museum and concert hall.
Despite its name, the synagogue was never used by a Spanish or Sephardic congregation: it was in fact an early Reform temple. There are two theories to account for the synagogue's name.
1) The Moorish architectural style may have been found reminiscent of the Golden age of Jewish culture in Spain.
2) The synagogue was on the site of the city's most ancient synagogue, which may originally have been used by Byzantine Jews. Some awareness of this fact may have given rise to the legend of a historic Sephardic community.