Definitely an issue in Spain, my other half is Latin American and she has suffered racism here, also a big anti Moroccan feeling especially here in the south
Which is mad, considering that Latin America was made up of a good chunk of Spanish colonists. And all that has happened is that your spouse, likely has Spanish heritage somewhere and has just seen her gravitate back to her origins {of course she could purely have Portuguese or French heritage but as a Latin American, Spanish people aren't going to know this}.
On top of that, it's bizarre there is an anti Moroccan feeling in the South of Spain, seeing as much of this region was built by North African and Muslim territories. A good 700-800 year era of implementing things like schooling, libraries. Not to mention poetry, architecture and literature. Not too mention, this era pretty much covered the whole of Iberia and the South of France. Southern Spain is all too happy to continue to using much of the terminology then in former al-Andalus! Interestingly or not, I think as the al-Andalus era came to an end, the colonisation of the Americas got underway. Ironic correlation that North African and Muslim era that colonised and created much of Spain {despite much western leaning history books liking to claim it was purely the making of the ''Christians'' Isabella and Ferdinand who made New Spain}, the new rulers of Spain then went off and colonised the Americas.
It seems {by your saying} that Southern Spain has a short term memory to it's true roots. Mind you, all nations have their issues in this way - China often has incredibly insular persons, with very little toleration for outside influence {this can be good and bad of course}. The UK, being an incredibly diverse nation and likely quite a tolerant one, yet it has it's obvious struggles with closeted and generational racism. Russia has a similar problem, oft forgetting much of its Bashkir, Tatar, Turk and Kazakh heritage {and much more} - which was very much a more peaceful group of regions and these people today are often dismissed in their modern society, with racialisation strategies by European Russia to say that they ''aren't white and are very dangerous''. We see this type of treatment often direct at different indigenous peoples globally.
I always find racism very weird. It either stems from an inherent lack of historical knowledge, which breeds a culture of ''fear of the unknown'' or basic ignorance driven by that very ''fear'' for political gain, where that ''other person'' might look a bit different. At the end of the day, not one human is in control of where on this Earth they are born. No one. So as often is the case, racism ultimately is something which is learned towards and not born into; it has no real need to exist.