Aim To evaluate the social, educational, health and behavioral predictors of physical functional decline in older Spanish adults. Methods A 2‐year longitudinal study based on 699 community‐dwelling Spanish adults aged over 65 years participating in the Survey of Health, Ageing and Retirement in Europe was carried out. Several predictors of a combined measure of functional disability were examined using logistic regressions. Results A decline in function was experienced by 166 individuals. Functional decline in men was associated with an increased number of chronic diseases (OR 2.25, 95% CI 1.21–4.19) and depressive symptoms (OR 5.05, 95% CI 2.42–10.54) over a 2‐year period, whereas among women it was associated with decreased numeracy score (OR 1.88, 95%CI 1.05–3.34). Conclusions Longitudinal changes in predictors are strongly associated with longitudinal changes in function between baseline and a 2‐year follow up, most clearly among men. A decrease in cognitive functioning and increased depressive symptoms are associated with a decline in physical functioning, and can serve as useful clinical predictors to prevent disability in older Spanish adults. Geriatr Gerontol Int 2014; 14: 403–412.