The high court determined Faical Errai, 29, ran pro-jihad Internet forums from his home in the coastal holiday town of Denia, TheLocal.es reported Wednesday.
He recruited terrorists "to kill or set themselves alight or carry out suicide attacks in conflicts in northern Africa and southwest Asia," the ruling said.
Judge Fernando Grande-Marlaska said that while it was clear Errai worked for the Ansar al-Mujahideen group, there was no evidence he was "an integral part of the network."
He said Errai's connection to the group was always virtual and he did not personally know the members of the group.
The ruling showed there was a legal difference between working for a terror group and being a member of said group, Spain's ABC newspaper said.