Mesozoic
The Iberian Peninsula was joined to Amorica (Northern France) prior to Late Mesozoic. In the early Cretaceous, the Bay of Biscay started opening around 126 Ma and completed by 85 Ma. This created the Biscay Abyssal Plain, and parted the peninsula from the Trevelyan Escarpment. During this time Iberia rotated anticlockwise relative to Eurasia. This caused the subduction of the Ligurian Basin onto the eastern side. This formed the Betic nappe stack. After 85 Ma the Atlantic Ocean opening started between Ireland and Greenland. This left the Bay of Biscay as a failed rift. The new Atlantic spreading caused Eurasia to rotate clockwise back towards Iberia causing underthrusting and subduction on the east side of the northern edge of Iberia, forming the Pyrenees.
In Late Triassic and Early Jurassic there were two stages of rifting involving extension and subsistence on the western margin of Iberia. It also extended the western margin. The Iberian Abyssal Plain, off the west coast of Portugal and Spain, formed 126 Ma. This separated Newfoundland's Grand Banks, with Galica Bank and Flemish Cap being split at 118 Ma. By Early Cretaceous, 110 Ma rifting occurs on west and north west edges.
In the Mesozoic, Late Jurassic Africa started moving east, and the Alpine Tethys opened. Subsistence related to this caused deep deposits of sediments on the east and some sediment remnants in pop downs in central parts of Spain. Two stages of rifting occurred in the east, one from Later Permian to Triassic, and the second from Late Jurassic to early Cretaceous.
On the south side deposits of carbonates and clastic sediments formed a shelf in shallow water during late Triassic and Liassic times. This was rifted in Toarcian times (Early Jurassic 190 Ma). Active rifting was complete by 160 Ma. After this thermal subsidence occurred till the end of Cretaceous. During this time rifting separated North America from Africa forming a transform zone.
Read more about this topic: Geology Of The Iberian Peninsula