Costa saved Alvaro Morata's spot-kick with a sprawling save during the shootout, with Ruben Neves stepping up to slot home the decisive penalty to seal the victory.

Spain flew out of the blocks at Allianz Arena, with Pedri dragging an effort from close range just wide of the mark before Nico Williams curled just over Costa's crossbar.

La Roja's early pressure eventually told in the 21st minute after a blistering counter-attack which was instigated by Mikel Oyarzabal's brilliant flick around the corner.

The ball eventually found its way to Lamine Yamal, whose cross was not dealt with by a combination of Ruben Dias and Joao Neves, allowing Martin Zubimendi, who has been linked with a move to Arsenal this summer, to tuck the ball home.

But Spain's lead lasted just five minutes when Nuno Mendes, fresh from his UEFA Champions League success with Paris Saint-Germain, picked out the bottom-right corner with a fierce drive just inside the penalty area.

After playing a starring role in Spain's opening goal, Oyarzabal ensured his team would led on the stroke of half-time after poking the ball past Costa after Pedri's driving run, but Portugal was unhappy about a foul on Bernardo Silva in the build-up.

Not deterred by falling behind late in the first half, Portugal thought it had levelled once again when Bruno Fernandes' strike from distance caught Unai Simon napping, but the goal was ruled out for an offside against Pedro Neto, who had flicked the ball on to the Manchester United star.

But Roberto Martinez's side drew level just after the hour through Cristiano Ronaldo, who was on hand to volley Mendes's deflected cross into the back of the net for his 138th goal for Portugal.

Neither side could find a winning goal, with the returning Isco coming closest when he stung the palms of Costa from distance, with extra-time seeing Portugal turn up the tempo in its quest for a second UEFA Nations League triumph.

The lively Mendes created the best chance in the added 30 minutes when his cutback found substitute Nelson Semedo, who miscued his effort from close range before Diogo Jota headed over in stoppage-time at the end of the second period of extra-time. 

After three perfect penalties from either side, Mendes fired into the roof of the net to put Portugal in front, with Morata, on as a late change for Oyarzabal, seeing his strike repelled by Costa, allowing Al-Hilal's Neves to pick out the bottom-left corner from 12 yards.

Portugal has now become the most successful team in the young history of the UEFA Nations League after lifting a second title, and its first since 2018-2019, with its leading marksman once again standing tall on the grandest of stages.

Ronaldo's strike in the 61st minute proved crucial in the context of the game. Indeed, no player has scored more goals against Spain than the five-time Ballon d'Or winner in all competitions since January 2004.

But Spain can reflect on another impressive international campaign. La Roja finished the 2024-2025 UEFA Nations League having scored 25 goals in 10 matches, the most by any team in a single edition of the men's competition since its inception in 2018.

Oyarzabal also made history for his country.

He became the first player in Spain's international football's history to score in three different finals, having also found the net in the UEFA Nations League showpiece in 2021 and UEFA EURO 2024 final.