Two goals from Fred and a stunning left-foot shot from Neymar gave next year's World Cup hosts their fifth straight win in the competition as they clinched the trophy for a third time in a row.
Spain endured a miserable night with Sergio Ramos missing a penalty early in the second half and Gerard Pique sent off for a lunge on his new Barcelona team mate Neymar after 68 minutes.
The Maracana crowd taunted Spain and chanted "the giant is back" as Brazil overpowered Vicente del Bosque's team whose last competitive defeat was against Switzerland at the 2010 World Cup.
"We played four world champions and now we have a little bit more confidence and that is what we wanted," he told O Globo.
"The players were wonderful today. I used the players I wanted to and none of them let me down," he added.
Spanish coach Del Bosque, whose side last lost any match when they were beaten by England in a friendly in November 2011 told Telecino: "We had a bit of bad luck in the opening minutes of each half but I don't want to make any excuses, they were better and that's that.
"They possibly had a bit more energy than us. Instead of being 1-1 we went 2-0 down in the last moments of the first half. But I don't think that right now we can analyse details. They were superior and that's it."
Fred's second minute hook-in while he was sitting on the ground lacked the powerful beauty of Neymar's strike against Japan, but its impact was even more emphatic.
The crowd, who just minutes earlier gave a rousing rendition of the Brazilian national anthem, raised the decibel levels even higher in celebration to settle Brazil's nerves, unsettle Spain and put the hosts firmly in control.
Spain were clearly rattled by Brazil's rampaging start and they survived another scare when defender Alvaro Arbeloa escaped with a yellow card when he was the last defender and sent Neymar tumbling.
Spain, who usually dominate matches with their intricate midfield passing moves, showed patches of their usual self-assured control, but they also looked tired following Thursday's exhausting semi-final penalty shootout victory over Italy.
Luiz's name boomed through the cavernous ground four minutes before half-time when he raced back to clear a goalbound shot from Pedro one metre in front of the line with Julio Cesar beaten.
