I read the news earlier today that the Spanish Film Academy chose "También la lluvia" ("Even the rain") to represent Spain at the Oscars next year. Apparently it's directed by Icíar Bollaín; she also directed "Te doy mis ojos" ("Take my eyes"). See the previous thread in the forum about that film here.

"También la lluvia" stars well-known Spanish actors Luís Tosar and Najwa Nimri as well as Mexican actor Gael García Bernal. According to what I've read, the story of the film takes place in Bolivia in 2000.

Interestingly, the Mexican Academy announced that it chose "Biutiful" to represent Mexico at the Oscars. It is directed by the Mexican director Alejandro González Iñárritu, and it stars Spanish actor Javier Bardem and takes place in present-day Barcelona.