1) In the mid-16th century, the decline of Spain's overseas empire had begun due to financial and moral bankruptcy from its war with the Dutch and failure to develop its overseas possessions for trade. 2) By the late 16th century, the Dutch had begun attacking Portugal's Asian territories, and Spain started losing its grip on its global empire. 3) The War of the Spanish Succession in 1700 following the death of the last Habsburg king of Spain further weakened the Spanish and Portuguese empires.