Spain Was Fifth European Country with Most Foreign Investment Projects in 2025

Spain has once again demonstrated its growing appeal to foreign investors, securing the fifth position in Europe for attracting investment projects in 2025. This achievement, detailed in the latest EY barometer, highlights Spain's resilience and attractiveness amidst a backdrop of international economic uncertainty. While France maintained its leadership for the seventh consecutive year, Spain's performance is particularly noteworthy, with a 7% increase in projects compared to the previous year, bringing the total to 376.

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Spain attracted 376 projects, 7% more than in 2024, driven by economic dynamism and the attractiveness of certain strategic sectors.

This growth is attributed to Spain's robust economic dynamism, which outpaced the EU average with a 2.8% expansion in 2025, and the strategic appeal of key sectors. The report specifically points to Spain's competitive labor costs within the Eurozone, its strong ties with Chinese investors in crucial areas like energy and batteries, and the vibrant technological ecosystem in Catalonia as significant draws. Furthermore, the availability of logistical and industrial land, coupled with excellent infrastructure connectivity, solidifies Spain's position as a prime destination for foreign capital.

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Spain recorded a strong fall in associated employment of 60% compared to the previous year, mainly due to the absence of large projects capable of generating more than five hundred jobs.

However, the narrative is not entirely without its complexities. While the number of investment projects increased, the associated employment saw a significant decline of 60%. This is largely explained by the absence of mega-projects capable of generating over 500 jobs, a trend observed in previous years. Notable investments include Chinese firm TDG IBERNAVITAS's battery and energy storage solutions project in Zaragoza and Microsoft's relocation of its Western Europe online sales center to Barcelona. From our perspective, these developments underscore Spain's evolving role in the global investment landscape, showcasing its capacity to attract diverse projects while highlighting the need to focus on initiatives that maximize job creation to fully capitalize on this foreign investment momentum.

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Spain has one of the lowest labor costs in the eurozone, with an average of twenty-six euros per hour worked, compared to the average of thirty-eight euros in the community area.