In pictures: Spanish King Juan Carlos

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Prime Minister Mariano Rajoy (r) announced King Carlos' (l) decision
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King Juan Carlos of Spain has decided to abdicate, Prime Minister Mariano Rajoy has announced.

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"His Majesty King Juan Carlos has just informed me of his desire to renounce the throne and begin the process of succession," Mr Rajoy said in a short statement. He said the king was stepping down for personal reasons. His health is failing and he has had a number of hip operations in recent years.

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In a televised address Juan Carlos said: "A new generation must be at the forefront... younger people with new energies."

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The king's son, Crown Prince Felipe, 45, will take over the throne.

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Born in exile in 1938, Juan Carlos was allowed to attend a Spanish school in Madrid before joining the military and attending university. He married Princess Sofia of Greece in 1962.

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When Juan Carlos took over from General Franco, he became Spain's first crowned head of state for 44 years.

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In 1981 rebels seized parliament in an attempt to prevent the appointment of a new Union of the Democratic Centre government. Juan Carlos made a televised address demanding an end to the coup and the plotters surrendered.

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For much of his reign, Juan Carlos was seen as one of the world's most popular monarchs, but recently many Spaniards have lost confidence in him.

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His reputation has been tarnished by a long-running corruption investigation into his daughter and her husband.

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Support for the king fell further when it was discovered he had been on a lavish elephant hunting trip to Botswana in April 2012, in the middle of Spain's financial crisis.

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As the years went on the king involved himself less in day-to-day politics, and became more of a figurehead.

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He has been credited as a stabilising force for independence-minded areas such as Catalonia and the Basque region.