Olivenza is a small town in Extremadura, southwestern Spain, close to the Portuguese border. The town has a long and rich history, being first settled by the Celts and later by the Romans. The town was taken by the Portuguese in 1415, and remained under Portuguese rule until 1801, when it was ceded to Spain as part of the Treaty of Badajoz. Olivenza has a distinctly Portuguese character, with many of the town's inhabitants speaking Portuguese as their first language. The town's architecture is also Portuguese in style, and the town's main square is dominated by a statue of King Sebastian of Portugal. Olivenza is a popular tourist destination, and is home to a number of restaurants, bars, and shops.