Spain's equivalent of the Concise Oxford English Dictionary defines "Jewish" as "a person who is avaricious or usurious".
The 23rd edition of the Royal Spanish Academy (RAE) dictionary took 13 years to compile and was launched at a sombre ceremony presided over by King Felipe VI and Queen Letizia earlier this month.
The dictionary defines the word "judaida", which in English means a cruel act or extortion, as "an action that prejudiced someone".
Isaac Querub, the president of the Federation of Jewish Communities in Spain, told the Times: "The definitions of judaida only reflect antisemitic prejudices from other times. We call on the RAE to leave behind the legacy of the Inquisition and Nazism."
The RAE said that the dictionary reflected the way Spanish people describe Jews.
The Jews were expelled from Spain in 1492. Earlier this year, the government passed a bill allowing their descendants to claim Spanish citizenship.