Everyone will have a different opinion but most would say that Juan Belmonte was one of the greatest, if not the greatest, matador in history. Others might say Manolete, Dominguin, Antonio Ordonez, Carlos Arruza or even El Cordobes or another.
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If by famous you mean best, everyone has their own opinion. However, the majority would probably vote for the Spaniard Juan Belmonte. Others for Manolete. However, a a few decades back Spain produced another matador who may not have been very artistic nor was he a particularly great matador. However, he became quite famous around the world for his daring and, sometimes, suicidal antics in the bullring. His name - Manuel Benitez known as El Cordobes. He has been retired for some time now.
Perhaps the most famous matador in Spain today (2014) is Juan Jose Padilla. On October 7, 2011, he received a very serious goring in the face and lost one eye. He wears an eye patch now and is known in the ring as El Pirata - The Pirate. Five months later he returned to the ring. For a video of the bullfight and his goring click here. Be advised, it is graphic.
In this video he makes a triumphant return to the bullring a few months later. The video shows almost the entire bullfight and includes the other matadores appearing with him that day. Note that Juan Jose places his own banderillas and does not delegate that to one of his assistants.
Here are the names of a few, both Spaniards and Mexicans:
Francisco Romero
Juan Belmonte
Manolete
Antonio Ordonez
El Cordobes
Carlos Arruza
Fermin Espinosa
Manuel Capetillo
Alfredo Leal
Antonio Lomelin
Mariano Ramos
and hundred of others
The very best matadors are famous in Spain because the Festival of the Bull is a highly regarded art form and Spanish past time. Top-rung matadors have rock star status.