Spain was ruled by a typical enlightened absolutist monarch, promoting culture and Christianity, and allowing some expression of the ideas of the Age of Enlightenment, in the country and its colonies, while at the same time maintaining strong political control. [clarification needed] However, the Spanish colonies in the Americas were advised to trade with other countries and their colonies, such as Great Britain and British North America, and the French Empire and New France. Spain was their only source of goods and merchandise, although it was unable to fulfill the trade demands of its colonies. Furthermore, Charles III's support for the independence of the United States generated new taxes, causing unrest in Spain's colonies in the Americas, such as the Revolt of the Comuneros (New Granada) and the Rebellion of Túpac Amaru II. Another major tension was the policy of excluding Criollos, or locally born whites, from public administration.

Charles IV (reigned 1788–1808) was not very interested in exercising political power, leaving such duties to his ministers, specially the disliked Manuel Godoy. Charles IV was more interested in pursuing the arts and science and gave little importance to the American colonies.

The development that precipitated the events of July 20, 1810, was the crisis of the Spanish monarchy caused by the 1808 abdications of Charles IV and Ferdinand VII forced by Napoleon Bonaparte in favor of his brother Joseph Bonaparte. The ascension of King Joseph initially had been cheered by Spanish afrancesados (literally, "Frenchified"), usually elites and important statesmen who believed that collaboration with France would bring modernization and liberty to Spain. An example of Joseph's policies was the abolition of the Spanish Inquisition. However, the general population rejected the new king and opposition, led by the priesthood and patriots, became widespread after the French army's first examples of repression (such as the executions of May 3, 1808, in Madrid) became widely known.