During World War II, Spain was governed by a military dictatorship, but despite Franco's own pro-Axis leanings and debt of gratitude to Benito Mussolini and Adolf Hitler, the government was divided between Germanophiles and Anglophiles. read more
There was huge civil unrest and lot of guerrillas (Maquis) still fighting in Spain. So Franco ordered three reports to the three branches of the military: Army, Air Force and Navy. The Army and Air Force reports advised to support Germany. read more
Spain did indeed declare nonbelligerent status, and did sign an understanding that it would eventually join the Tripartite Pact. As late as December 1942, Franco believed that at the right moment, Spain would join the war on the side of the Axis Powers. read more