On the day the reign of King Juan Carlos of Spain ended, the reign of Spain as football superpower also came to an end on Wednesday.
The defending champions were knocked out of the World Cup as Chile consigned them to a second straight defeat in Group B.
Eduardo Vargas finished off a well-worked Chile move by poking in a shot to give his side an early lead.
A mistake from Spain keeper Iker Casillas allowed Charles Aranguiz to smartly finish and add Chile’s second.
Diego Costa had a shot blocked when played through on goal and Sergio Busquets side-footed wide from five yards as Spain failed to recover.