The match remained scoreless even at extra-time which had to be decided on penalties. Spain turned out to be the lucky team to head into their third major tournament final after Cesc Fabregas scored the winning penalty. La Furia Roja are just one win away to be the only team to retain the European Championship.
However, Portugal's misfortunes continued as they are yet to win a major trophy in their history. Star man Cristiano Ronaldo came close to break the deadlock in normal time. The in-form striker, who scored both the winning goals to help Portugal qualify, was supposed to take the final penalty in the shootout but never got a chance as Joao Moutinho and Bruno Alves failed to score.
"My feeling is sadness. Clearly to lose a semi-final on penalties is always hurtful but penalties are a lottery and the one with most luck is the one who wins. I think it was a very successful European Championship [for Portugal]," Ronaldo was quoted as saying in UEFA.com.
"We did well, we were among the best four teams at the tournament and we didn't win because we didn't have luck but penalties are like that. We have to be proud, but the truth is that we are a bit frustrated because we knew that we could reach the final," the Real Madrid forward said.
Ronaldo was satisfied with himself and his teams performance in the tournament but said they deserved to be in the final.
"I did my best as I always do, so I'm satisfied with what I have done for the team. We have to be proud because we did what we had to do. We played well and we deserved to be in the final," he said.
Meanwhile, Portugal strikers Nelson Oliveira and Hélder Postiga, who missed the semi-finals due to injury, said they could go home with their "heads held high".
"We're sad but at the same time we can hold our heads high because we are dignified in our defeat. We did everything we could to win and unfortunately we were unable to do so but we come away proud," the 20-year old Oliveira said.
"We didn't have the luck of previous competitions but we have to keep our heads held high because the players gave their all on the field and brought honour to Portugal. This result and the campaign should make the Portuguese proud," Helder Postiga said.