Spanish Monarchy notes, 17th Century

Advantages

Spains primary advantage was its large empire, the first of its
kind ranging from New World territories (Spanish and later
Portuguese), Hapsburg Austria, Catholic territories in Germany,
the Spanish Netherlands, and parts of Italy, including an alliance
with the Papacy. It was the first to boast The sun never sets in
Spanish territory)
The Spanish Armada, until 1660, was the most powerful naval
fleet in the world. In campaigns against France, Italy (including
the papal states!), and the Ottoman Empire, they won battles
decisively.
Spain dominated the New World, conquering territories in the
Americas, Philippines, and more, and sent an endless supply of
wealth back home from newly discovered and conquered
territories. (Conquistadors in Americas, Spanish Indies, supply of
gold and silver, etc)
Disadvantages
With a colossal empire comes a giant financial responsibility, and
it forced Spain into several bankruptcies during the 17th Century,
such as its attempts to reclaim the Netherlands from the Dutch
Republic during the Thirty Years War, and in 1596 after waging
wars with England, France and the Dutch. (devaluing currency,
several bankruptcies, etc)
Banking and Trade by the Dutch East India Company began to
rival Spanish and Portuguese trade in India and Southeast Asia,
ending the commercial monopoly from Portugal to the Japans.
(Dutch banking, development of stock market, competition in
Asia, English slave trade, English privateers, etc)
As a Catholic country, especially during the Thirty Years War,
France, the Dutch Republic, and the kingdoms of Denmark and
Sweden fought to end Spanish domination. (Protestant countries,
Thirty Years war, etc)
Many countries began to improve their navies, including the
English and Dutch (defeat of the Spanish Armada, Queen
Elizabeth I, Dutch Republic naval and merchant fleet)