Well, Spaniards are different from Hispanics. Spaniards are from Spain. Hispanics are from the other countries that speak Spanish or Portuguese because they were conquered back in the day.
Remember how in the Zimmerman trial, the reporters insisted on calling Zimmerman a “white Hispanic” just so they could say it was a racially-motivated white on black murder. >.<
Additionally, I’m also thinking of the case of a guy from Africa who emigrated to the US for school, but was thrown out because he called himself as a “white African-American.” Apparently, that’s considered racist against black people.
Sephardim from the Middle East are Sephardi in nusach, but they definitely aren’t Spaniards or Hispanics. I don’t really know what to say if you’re forced to classify your ethnicity for official forms. If there’s an option for “Other,” probably that’s your best bet.