With 98 percent of the vote counted, the Socialist Party has won 120 seats, the Popular Party 88, Vox 53, Podemos 35 and Ciudadanos 10.
It means the Socialists will still be the largest party but yet again far short of an absolute majority and without enough seats even with the support of Podemos to meet 176 seats in the 350 seat parliament.
The PP have bounced back from the 66 won in April in what was the worst result for the party in its history and have won 85 seats. Meanwhile support for Vox has surged with the party doubling the number of MPs who will enter parliament from the 24 in April to 50 seats, leapfrogging Santiago Abascal's party over Ciudadanos and Podemos to become the third largest.
It's a devastating result for Ciudadanos who see their number of seats cut from 57 to 10.
While parties supporting independence for Catalonia won 13 seats.
- PROFILE: Spanish PM Pedro Sanchez
- PROFILE: Popular Party leader Pablo Casado
- PROFILE: Vox leader Santiago Abascal
No block, either through a pact of left wing parties or of those in the right, looked able to secure the absolute majority required to form a government.
The last election produced a near-record 76 percent turnout, which helped Sanchez who had mobilised left-leaning voters to oppose Vox.
But participation dropped by a massive 8 points this time round.
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