On February 18, 2025, the Spanish Institute for Foreign Trade (ICEX) released the 17th edition of the “Business Investment Environment Index Report”, offering a comprehensive analysis of the current state of foreign direct investment (FDI) in Spain and its future outlook.
I. Current Situation of FDI Attraction in Spain
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Over the past decade, Spain has solidified its position as a leading global investment destination, showcasing resilience and openness to international trade and economic integration. The country continues to emphasize multilateralism and globalization, aligning with the European Union’s (EU) strategic vision.
Spain’s balanced and sustainable economic model remains a cornerstone of its success. According to the OECD, Spain ranks among the top 10 developed economies with the highest openness to FDI. Regulatory updates since 2020—while designed to protect national interests—have not deterred investment inflows. Instead, they have enhanced investor confidence by ensuring stability and transparency.
A clear indicator of Spain’s attractiveness lies in its greenfield investment performance.
According to FDI Markets (Financial Times Group), in the first 11 months of 2024, Spain ranked 5th globally in the number of greenfield projects, with 682 projects attracting nearly EUR 33 billion and creating over 60,000 new jobs. These figures reflect Spain’s strong appeal and capacity to drive sustainable, high-value economic growth.
To sustain this momentum, the Spanish government is intensifying efforts to retain and expand foreign investments. Recently, the Prime Minister announced the formation of a Strategic Investment Committee, tasked with prioritizing major investment projects, accelerating digital transformation, and enhancing cross-sectoral coordination. This initiative aims to ensure that FDI contributes effectively to long-term national goals.
Spain’s investment environment remains among the most competitive in Europe, offering:
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A robust local business ecosystem with international linkages
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Advanced industrial clusters
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Strong infrastructure and logistics
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Improved energy cost efficiency, a key factor for investors
These advantages, highlighted in the 17th ICEX report, reinforce Spain’s position as a hub for innovation and sustainable development within the EU.
II. Assessment of Spain’s FDI Environment
The 17th Business Environment Index Report, jointly conducted by ICEX, the Multinational Companies Association in Spain, and the International Center for Competitiveness (ICC) of IESE Business School, reflects feedback from over 700 foreign-owned enterprises operating in Spain.
The findings reveal continued optimism across key indicators — investment, revenue, employment, and exports — for 2025:
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12% expect an increase in revenue
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3% plan to raise investment
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7% forecast higher employment
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6% anticipate stronger exports
Overall, 89% of foreign firms intend to maintain or increase investment in Spain this year, despite a complex global landscape.
Revenue expectations are similarly strong, with 87% of companies forecasting stable or higher sales in 2025, up from 78% in 2024.
Export Outlook
Approximately 74% of surveyed foreign companies export from Spain to other markets.
Among these, 92% expect to maintain or expand export sales to third countries in 2025, underscoring Spain’s role as a regional export hub within Europe.
Employment Forecast
92% of respondents plan to maintain or increase their workforce in 2025—an improvement of seven percentage points compared to 2024.
This demonstrates corporate confidence in Spain’s long-term labor market stability.
III. Strengths and Areas for Improvement
According to foreign investors, Spain’s top strengths include:
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World-class infrastructure
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Large domestic market
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Skilled and adaptable workforce
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Strategic geographic location connecting Europe, Africa, and Latin America
Meanwhile, investors identified areas for improvement such as:
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Tax and financial policies
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Administrative burdens
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Electricity costs (though improved compared to prior years)
IV. Sustainability Commitments and Future Outlook
In line with the UN 2030 Agenda for Sustainable Development, the report highlights Spain’s growing alignment between public policy and private-sector sustainability goals.
Foreign enterprises in Spain acknowledge strong social awareness among consumers, employees, and suppliers, which supports the adoption of responsible and green business models.
Spain’s long-term investment strategy—anchored in sustainability, innovation, and competitiveness—positions it as one of Europe’s most promising destinations for high-value FDI in 2025 and beyond.