Gonzalo was born in Madrid. He was baptized with the names Gonzalo Manuel María Bernardo Narciso Alfonso Mauricio. He received his final name in honor of his uncle, Prince Maurice of Battenberg, who was killed in World War I shortly before Gonzalo's baptism. The infante was educated privately. Because he inherited hemophilia from his mother's family (a fact not widely known in Spain during his life), he suffered some ill health, although he was an active sportsman. He held the rank of a private in the Engineering Corps of the Spanish Army. In 1927 he was made the 1,166th Knight of the Spanish branch of the Order of the Golden Fleece.
In August 1934 Gonzalo was spending the summer holidays with his family at the villa of Count Ladislaus Hoyos at Pörtschach am Wörthersee in Austria. On the evening of 11 August, Gonzalo and his sister Infanta Beatriz were driving from Klagenfurt to Pörtschach. Near Krumpendorf, Beatriz, who was driving, was forced to swerve to avoid a cyclist (the retired jockey Baron Neimans). The car crashed into a wall. Neither Gonzalo nor Beatriz appeared badly hurt, and so they returned to their villa. Several hours later it became clear that Gonzalo had severe abdominal bleeding. Because he had a weak heart, an operation was ruled out. He died two days later.
Gonzalo was buried in the graveyard at Pörtschach. Later his body was moved to the Pantheon of the Princes in El Escorial.
The generations indicate descent from Carlos I, under whom the crowns of Castile and Aragon were united, forming the Kingdom of Spain. Previously, the title Infante had been largely used in the different realms.