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Cadiz is a great beach town with some cool old churches. The entire province of Andalucia has some great sightseeing. On the way down to Cadiz you can hit Sevilla and Granada which are cool and historical. Sevilla has good nightlife. From this Southern region, it is a quick jump over to Africa too. Cordoba and Malaga are other historical Southern cities.
Madrid is an amazing city, with great nightlife and cool people. The Islands of Ibiza and Mallorca are a lot of fun and have some cool beaches.
For a lot of the charm of Spain for a little cheaper check out Portugal.
I highly recommend the train and bus system in Spain. You can take it everywhere, and it's cheap, punctual and pretty comfy.
Have fun!
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