Total Investment Hits Four-Year Low, but Quarterly Performance Recovers
Data from the Foreign Investment Registry of the Spanish Ministry of Commerce shows that in 2025, non-ETVE (Entities Holding Foreign Securities) foreign direct investment in Spain totaled €30.764 billion. This figure represents a 21.8% decrease compared to 2024, marking the lowest level since 2021 (€29.216 billion).
Despite the overall annual decline, quarterly data indicates a gradual recovery. Investment in the first quarter of 2025 was €4.841 billion, followed by a slight increase in the second quarter. It then surged significantly to €10.615 billion and €10.998 billion in the third and fourth quarters, respectively, showing a strong rebound in the second half of the year.
Regional Distribution: Madrid Dominates, with Catalonia Following
Geographically, investment remains highly concentrated. The Community of Madrid attracted €15.97 billion in foreign investment in 2025, accounting for 51.9% of the national total and maintaining its position as Spain’s primary investment hub. However, it is noteworthy that this figure represents a 40% decrease compared to 2024.
Catalonia ranked second with €4.51 billion. Aragon and Andalusia also performed well, attracting €3.387 billion and €1.364 billion, respectively. These four were the only autonomous communities to receive over €1 billion in foreign investment in 2025. Among other regions, the Valencian Community attracted €772 million, while Ceuta and Melilla received just €10 million.
Sectoral Focus: Services and Real Estate Prove Most Attractive
In 2025, foreign capital primarily flowed into several key sectors. The information services sector attracted the most investment at €3.437 billion, closely followed by advertising and market research with €3.26 billion.
Other popular investment areas included:
- Real estate activities: €2.54 billion
- Warehousing and support activities for transportation: €2.117 billion
- Financial services: €2.066 billion
- Supply of electricity, gas: €2.029 billion
- Food industry: €1.353 billion
Main Source Countries: Luxembourg and the US Dominate
By country of origin, Luxembourg was the clear leader, investing €8.561 billion to become Spain’s largest source of foreign capital. The United States followed in second place with €6.402 billion. Together, these two countries accounted for a substantial portion of the total investment.
Other major investor countries included the United Kingdom (€2.322 billion), France (€2.079 billion), the Netherlands (€1.529 billion), Belgium (€1.441 billion), Mexico (€1.122 billion), Germany (€1.121 billion), and Canada (€1.082 billion). Analysts suggest that while geopolitical tensions and tariff uncertainties have impacted global investment flows and contributed to the overall decline, Spain continues to be an attractive destination for investors from major economies.
