Despite a macroeconomic environment marked by geopolitical uncertainty and trade protectionism, the United Kingdom has consolidated its position as the fourth largest investor in Spain, with a stock of Foreign Direct Investment (FDI) that reached 68.477 billion euros in 2023. The outlook for 2026 is optimistic, as more than 60% of British companies expect to increase their investments in the Spanish market.
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El Barometer on Climate and Prospects for British Investment in Spain, in its tenth edition, reveals the strength of the bilateral economic link between both countries. In 2023, the stock of British FDI grew by 4,6% year-on-year , representing a 11,2% of total FDI in Spain.
British investment shows a marked historical concentrationhighlighting the following sectors in 2023 by volume of stock:
Telecommunications: 9.287 billion euros (13,6% of the total).
Metallurgy: 6.539 millones de euros.
Tobacco industry: It contributes 83,4% of the sector's total FDI.
Postal and mail activities: It accounts for 89,6% of foreign investment.
Recent Investment Flows
FDI flows from the United Kingdom registered a exceptional volume of 12.407 million euros in 2024 , driven primarily by unique transactions in Telecommunications. In the first half of 2025, investment moderated to 1.077 millones de euros , placing the United Kingdom as the second largest investor In Spain, second only to the United States.
In the first half of 2025, the flows were concentrated in Information Services (37% of the total) y Telecommunications (17,4% of the total). La productive nature British FDI remains, with 95,6% of historical flows not being of the ETVE type (Foreign Securities Holding Entities).
UK FDI contributes to the creation and maintenance of More than 331.100 jobs in Spain (1,5% of total national employment) in 2023. Of these, 193.895 are direct jobs y 137.260 indirect jobs.
La Region of Madrid It has historically established itself as the main recipient of flows , absorbing near the 70% of the total in the first half of 2025 , followed by Catalonia with 19% and with a notable increase in regions such as La Rioja and Galicia.
British companies have good EXPECTATIVES about the Spanish economy. El 64% of the companies surveyed declares his intention to increase the volume of investment in 2026. . The main motivation for maintaining or increasing investment is the expansion of business lines (72%) , followed by the development of the digital transformation and innovation (both with 39%).
However, medium- and long-term investment faces challenges identified in the focus groups with companies:
Regulatory and Fiscal Uncertainty: La institutional volatility, regulatory fragmentation, and lack of fiscal predictability could affect future strategic decisions.
Talent Management: There is a shortage of specialized profiles (such as sustainability or AI) and the lack of affordable housing It makes retention difficult, although Spain is positioning itself as an attractive destination for middle managers..
Sustainability: Although there is a growing commitment With decarbonization, companies are warning about the lack of incentives appropriate and the normative complexity for the implementation of green initiatives, such as that of CBAM.
In short, British investment in Spain presents itself as resilient and with a sustained commitmentHowever, improvements to the regulatory environment and talent management will be crucial to ensuring its long-term growth..
