Defenders Kyle Walker and Chris Smalling were the shining lights for Stuart Pearce's side on a testing night, with Spain dominating large periods of the play.
Spain well and truly had the upper hand in the first half and took the lead with an Ander Herrera header in the 14th minute, though television replays suggested the ball may have struck him on the hand.
England clawed their way back into the game in the second half and both sides created several chances, before Manchester United's Welbeck fired an 88th-minute equaliser past David De Gea, after good work down the right flank from Tottenham starlet Walker.
The match had been billed as a meeting of two of the tournament's early favourites, but it was Spain who were well on top during the early exchanges, with their slick and composed passing game leaving England chasing shadows for the first half hour, with Thiago Alcantara and Javi Martinez the lead tormentors.
Despite Stuart Pearce's side finding their feet as the game wore on, it was Spain who still looked more likely to find the net, with young Blackburn keeper Frank Fielding at full stretch to turn a deflected Herrera shot around the post.
Just as the game looked to be slipping from England's grasp, fullback Walker - who spent the second half of the season on loan at Aston Villa - found space down the England right, cut inside and threaded the ball through to Welbeck - himself on loan at Sunderland this season.
