Socialist leader Pedro Sánchez, UN agency filed the motion when Mr Rajoy's party was involved in an exceedingly corruption scandal, can become prime minister.
"We're reaching to sign a brand new page within the history of democracy in our country," Mr Sánchez same prior Friday's vote.
Mr Rajoy is that the initial prime minister in trendy Spanish history to be defeated in an exceedingly no-confidence motion.
The leader of the conservative common Party (PP) has been prime minister since 2011.
During the second day of dialogue on weekday, Mr Rajoy admitted facing defeat and told MPs that it's been "an honour to depart an improved Spain than I found".
Mr Sánchez secured a majority within the vote when gaining support from varied smaller parties, together with the Basque Nationalist Party - one hundred eighty MPs backed the motion, 169 voted against, with one self-denial.
Why was the vote called?
Mr Sánchez says Mr Rajoy, 63, had did not take responsibility for his party's involvement within the scandal, that hit the headlines once more last week when one in all its former treasurers was given a 33-year jail sentence.
The court in Spanish capital guilty Luis Bárcenas of receiving bribes, concealing and tax crimes.
The case centred on a secret campaign fund that the PP ran from 1999 till 2005.
Many Spanish voters, cheesed off by corruption scandals involving the standard centre-right PP and centre-left Socialist parties, have abandoned them for newcomers just like the left Podemos (We Can) and pro-market Ciudadanos (Citizens), additionally as regional parties.
Who is that the new prime minister?
Pedro Sánchez emerged as a virtual unknown to win the Spanish political party berth in 2014. The attractive social scientist and former athlete won members over with a promise to unite a divided party and place the Socialists back in power.
Yet he afterwards suffered 2 undignified election defeats, in 2015 and 2016. He was eventually forced to resign when his refusal to back Mariano Rajoy in AN investiture vote plunged the country into a protracted political stalemate and his party into bitter infighting.
Months later he mixed-up his several critics by returning to win the Socialist primary. Spain's constitution states that the party presenting a no-confidence motion should be ready to manipulate and replace the throw out prime minister if a parliamentary majority backs it.
Therefore this moderate however bold 46-year-old from Spanish capital is ready to be Spain's new prime minister, despite the very fact that his party commands lower than 1 / 4 of seats in Congress.
What happens now?
Mr Rajoy's departure casts the EU's fourth-largest economy into political uncertainty.
Mr Sánchez is predicted to be sworn in at the weekend and to call a cupboard next week.
Although he leads the Socialist PSOE party, he's not a member of parliament. Correspondents say that with solely eighty four lower house seats, the party can struggle to seek out allies to urge legislation enacted.
Mr Sánchez is predicted to urge support from Podemos. Smaller teams - together with Basque and Catalan nationalists - supported the no-confidence motion, however it's unclear whether or not they can back the new government.
The Ciudadanos party, that had been doing well in opinion polls, supported Mr Rajoy.
source: BBC
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