"We think that the Greek people will be courageous, that they will be on the 'No' side," said Rommy Arce, a Madrid city councillor who belongs to a leftist "Ahora Madrid" citizens platform that took power in the capital last month.
Voting "No" to the latest bailout terms offered to Greece by the IMF and the European Union "is a rejection of all the governments that apply these policies on the rest of Europe," she added.
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It was backed during local elections in May by Spain's new radical, anti-austerity party Podemos, a close ally of Greece's ruling Syriza party.
"The fundamental dilemma is between democracy and austericide," said Jaime Pastor, a member of Podemos.
"Our future will depend on what will happen in Greece," he added.
Podemos has not called openly for Greeks to vote "No" but one of its representatives will be in Athens on Sunday and the party has defended the right of Greeks to decide their own future.
The Greek referendum is being closely watched in Spain where anger over austerity has fuelled the rise of Podemos ahead of a year-end general election.
The party came in third place during local and regional elections in May, behind the ruling conservative Popular Party and the Socialists.
Spain's conservative government argues a replay of Syriza's policies could derail the Spanish economy's recovery from the worst downturn in its democratic history.
Spain grew by 1.4% last year, its first full year of growth since a property bubble burst in 2008, throwing millions of people out of work.
But its jobless rate remains at 23.78% in the first quarter, the highest rate in the eurozone after Greece's which stood at 25.6% in March.
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