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Spoilers for another post elsewhere:
Spike returns as a incorporeal being who is pretty much a ghost... though not exactly a ghost as Fred continues to insist. He can't leave LA. He's somehow connected to the amulet. He reveals to Fred (and to Fred alone) that he thinks he's being sucked into hell. Fred vows to try to help him and make him corporeal again. She actually comes up with a way but when she is endangered by it, Spike passes up his chance to be corporeal again to save Fred's life. So... Spike is a ghost.
Spike returns as a incorporeal being who is pretty much a ghost... though not exactly a ghost as Fred continues to insist. He can't leave LA. He's somehow connected to the amulet. He reveals to Fred (and to Fred alone) that he thinks he's being sucked into hell. Fred vows to try to help him and make him corporeal again. She actually comes up with a way but when she is endangered by it, Spike passes up his chance to be corporeal again to save Fred's life. So... Spike is a ghost.