An early count based on the official results of 78 percent of polling stations, shows the Popular Party winning with 44 percent of the vote.
This would translate to 187 seats in the lower house, up from 154 previously. If they gain 178 or more they will be able to form a majority government.
It also showed the Socialists, who have been in power for the last seven years, lagging behind with just 29 percent of the vote. This would translate to just 109 seats, compared to the 169 they gained from the last election.
There was also a high count for the Basque independentist party, Amaiur. A strong comeback for the party which had been previously outlawed.
The results so far largely agree with earlier exit polls also suggesting a victory for PP President, Mariano Rajoy.
They showed the centre-right party would win 181 to 185 seats, or 43.5 percent of the votes. And indicated that the Socialists would fall, down to just 115 to 119, or a 30 percent share of the votes.