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I have a friend from Spain but don't want to seem like an idiot, and something tells me this is a stupid question...
You can call people from Spain ~ Españoles or spaniards
However, when speaking of Spanish-speaking people, you put them together like:
But do you know if it's incorrect to call them hispanic?
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I don't think that it's technically incorrect, but it's not a word that they would use to describe themselves.
I would disagree with @order that it's OK to call Spanish-speaking people "Spanish" (someone from South America would never describe himself as Spanish, he'd be Spanish-speaking) or "Latinos" (people from Spain don't think of themselves as "Latinos" at all, Latinos seems to imply that you are from Latin America).
source: I'm from South America and I live in Spain.
mmm I call myself Dutch... and I'm from Holland... Calling themselves españoles would makes a lot of sense, since the name of the country is Spain (so I'm Spanish)... or Poland, where they call themselves and speak (Polish)... No, Spanish people would not usually call themselves latinos, as they are not part of the America, but they are still regarded sometimes under that category by some other nations.