In 1556, amid great pomp, and leaning on the shoulder of one of his favourites (the 24-year-old William, Count of Nassau and Orange), Charles gave away his lands and his offices.
The Spanish empire, which included Spain, the Netherlands, Naples, Milan and Spain's possessions in the Americas, went to his son, Philip.
Ferdinand became suo jure monarch in Austria and succeeded Charles as Holy Roman Emperor.
This course of events had been guaranteed already on 5 January 1531 when Ferdinand had been elected the King of the Romans and so the legitimate successor of the reigning Emperor.

Charles's choices were appropriate.
Philip was culturally Spanish: he was born in Valladolid and raised in the Spanish court, his native tongue was Spanish, and he preferred to live in Spain.
Ferdinand was familiar with, and to, the other princes of the Holy Roman Empire.
Although he too had been born in Spain, he had administered his brother's affairs in the Empire since 1531.
Some historians maintain Ferdinand had also been touched by the reformed philosophies, and was probably the closest the Holy Roman Empire ever came to a Protestant emperor; he remained nominally a Catholic throughout his life, although reportedly he refused last rites on his deathbed.
Other historians maintain he was as Catholic as his brother, but tended to see religion as outside the political sphere.

Charles' abdication had far-reaching consequences in imperial diplomatic relations with France and the Netherlands, particularly in his allotment of the Spanish kingdom to Philip.
In France, the kings and their ministers grew increasingly uneasy about Habsburg encirclement and sought allies against Habsburg hegemony from among the border German territories, and even from some of the Protestant kings.
In the Netherlands, Philip's ascension in Spain raised particular problems; for the sake of harmony, order, and prosperity Charles had not blocked the Reformation, and had tolerated a high level of local autonomy.
An ardent Catholic and rigidly autocratic prince, Philip pursued an aggressive political, economic and religious policy toward the Dutch, resulting in a Dutch rebellion shortly after he became king.
Philip's militant response meant the occupation of much of the upper provinces by troops of, or hired by, Habsburg Spain and the constant ebb and flow of Spanish men and provisions on the so-called Spanish road from northern Italy, through the Burgundian lands, to and from Flanders.
In 1556, amid great pomp, and leaning on the shoulder of one of his favourites (the 24-year-old William, Count of Nassau and Orange), Charles gave away his lands and his offices. The Spanish empire, which included Spain, the Netherlands, Naples, Milan and Spain's possessions in the Americas, went to his son, Philip. Ferdinand became suo jure monarch in Austria and succeeded Charles as Holy Roman Emperor. This course of events had been guaranteed already on 5 January 1531 when Ferdinand had been elected the King of the Romans and so the legitimate successor of the reigning Emperor.
Charles's choices were appropriate. Philip was culturally Spanish: he was born in Valladolid and raised in the Spanish court, his native tongue was Spanish, and he preferred to live in Spain. Ferdinand was familiar with, and to, the other princes of the Holy Roman Empire. Although he too had been born in Spain, he had administered his brother's affairs in the Empire since 1531. Some historians maintain Ferdinand had also been touched by the reformed philosophies, and was probably the closest the Holy Roman Empire ever came to a Protestant emperor; he remained nominally a Catholic throughout his life, although reportedly he refused last rites on his deathbed. Other historians maintain he was as Catholic as his brother, but tended to see religion as outside the political sphere.
Charles' abdication had far-reaching consequences in imperial diplomatic relations with France and the Netherlands, particularly in his allotment of the Spanish kingdom to Philip. In France, the kings and their ministers grew increasingly uneasy about Habsburg encirclement and sought allies against Habsburg hegemony from among the border German territories, and even from some of the Protestant kings. In the Netherlands, Philip's ascension in Spain raised particular problems; for the sake of harmony, order, and prosperity Charles had not blocked the Reformation, and had tolerated a high level of local autonomy. An ardent Catholic and rigidly autocratic prince, Philip pursued an aggressive political, economic and religious policy toward the Dutch, resulting in a Dutch rebellion shortly after he became king. Philip's militant response meant the occupation of much of the upper provinces by troops of, or hired by, Habsburg Spain and the constant ebb and flow of Spanish men and provisions on the so-called Spanish road from northern Italy, through the Burgundian lands, to and from Flanders.
Ferdinand I, Holy Roman Emperor