Foreign Direct Investment in Spain Plummets 22% to Lowest Level Since 2021

FDI in Spain fell 22% to €30.76B in 2025, diverging from global growth trends. Madrid remains the top destination while technology and data centers lead sectors.

By: AXL Media

Published: Apr 6, 2026, 10:41 AM EDT

Source: Information for this report was sourced from Euronews

A Sharp Reversal from Prior Record Peaks

Spain’s ability to attract international capital saw a significant contraction in 2025, with foreign direct investment (FDI) falling to levels not seen since the immediate post-pandemic recovery of 2021. This 21.8% decrease follows a year of peak performance in 2024, when the country secured €39.35 billion in investment. Even when accounting for net terms—which deducts disinvestments from the total—the Spanish economy still experienced a 10% decline, signaling a cooling of interest from international markets despite the presence of specialized European recovery funding.

Divergence from Global Investment Trends

The contraction in the Spanish market stands in stark contrast to the broader international landscape, where investment appetite appeared to be on the rise. According to estimates from the United Nations Conference on Trade and Development (UNCTAD), global foreign investment expanded by approximately 14% throughout 2025. While advanced economies typically posted growth rates of at least 5%, Spain’s double-digit decline has widened the performance gap between the Iberian nation and its peer economies, raising questions about the country’s comparative attractiveness.

The United States Maintains Lead in Key Sectors

Despite the overall downward trend, the United States remained the primary source of foreign capital for Spain, contributing approximately €10 billion over the past year. Much of this American investment was concentrated in high-tech infrastructure, specifically targeting large-scale data center projects and broader technology initiatives. Other major European economies, including France, the United Kingdom, and Germany, followed as leading contributors, while China ranked seventh with €643 million, trailing behind Singapore in the annual investment rankings.