Spain must play their next international friendly with a partial stadium closure after supporters sang a discriminatory chant about Muslims during a game against Egypt on 31 March.
A group of Spain home fans were heard chanting around the 10th minute of the first half, and once more at the beginning of the second half.
An anti-discrimination message warning fans was displayed on the screen at the RCDE Stadium in Barcelona - and was repeated early in the second half, leading to whistles from some sections of the crowd.
Fifa subsequently opened disciplinary proceedings against the Spanish Football Association (RFEF) for "Islamophobic and xenophobic" chants.
Following the incident the RFEF condemned the anti-Muslim chants while Spain coach Luis de la Fuente called them "intolerable" and said "violent people use football to carve out a space for themselves".
But in the written reasons published by Fifa, RFEF argued that the chants did not constitute discriminatory conduct, an argument that was rejected by the disciplinary committee.
It noted that the RFEF could not "persuasively maintain both that the chant was entirely harmless and that it warranted activation of anti-discrimination measures".
Spain must play their next friendly with 15% of the stadium closed off - though they may, subject to the approval by Fifa, fill the seats with community and/or special interest groups (such as families, students, and anti-discrimination organisations).
The stadium closure is required to be implemented primarily within the stands behind the goals.
Fifa has also fined Spain $20,000 (£15,000).
Spain's next potential international friendly date is in June. However, if they qualify for the finals of the Nations League the punishment will be delayed until one of the empty dates during Euro 2028 qualifying next Autumn.
Following the 0-0 draw, the Egyptian Football Association condemned the chants as an unacceptable "repugnant act of racism", but said the acts of a small group of fans would not affect the close relations between the Spanish and Egyptian federations.