Spain clinched third place with a 90-run victory over Israel, who were only able to field nine players because of injuries and religious observance.
In another powerful batting display, the Spaniards ran up a total of 258-8, surpassing their previous best of 248 for six against Portugal.
The runs came from Tariq Ali, who made 58 from 18 deliveries, with five fours and five sixes, sharing an opening stand of 78 with Armaghan Khan (29), from Pedro Venus Valiente (44 from 26), and from Nizar Ahmed, whose 19-ball 50 included two fours and six sixes.
Israeli wicketkeeper Shailesh Bangera discarded the gloves for this game and was the most successful of the bowlers with 3-32, while captain Herschel Gutman and Shifron Waskar picked up two apiece.
This total was always going to be beyond the depleted Israelis, but Josh Evans (52) and Bangera (64 not out) shared a fourth-wicket stand of 80 which lent respectability to their score, and the innings closed on 168-4.
Reflecting on the competition, Israel captain Herschel Gutman told JC Sport: "Our goal was to finish top two and gain promotion to Division One, and after winning five out of five in the group stages we just came unstuck against eventual winners Isle of Man.
"T20 cricket can change so quickly and after having IoM 95-7 after 17 overs, the three overs of our bowling cost us a little and then we were on course for a win at 60-1 afte 10 overs, but again, a few poor overs and the run rate kept climbing.
"It was a sad end to a very good tour. We never had any individuals who stood out which showed how good we were as a team unit - our fielding was far superior to other teams and our discipline was brilliant.
"All in all, it was a fantastic trip, the squad as a whole were excellent ambassadors for Israel and only made friends with other teams and officials."
ICC EUROPEAN DIVISION TWO T20 CHAMPIONSHIPS
Spain 258-8 (20 overs) Shailesh Bangera 3-32
Israel 168-4 (20 overs) Shailesh Bangera 64 not out, Josh Evans 52
Spain won by 90 runs