Spain It has firmly established itself as the second most popular destination globally for investments from Latin Americawith a capital flow that has experienced particularly intense and sustained growth since 2010, accumulating an increase of 103%. This trend has brought the region's total accumulated investment in Spain to the figure of 66.844 millones de euros, which represents a significant 9,4% of total foreign investment in the country.
These data are the central axis of the seventh edition of the report Global LATAM 2025, an initiative led by ICEX-Invest in Spain in collaboration with the Ibero-American General Secretariat (SEGIB). The study was presented in Madrid by Elisa Carbonell, CEO of ICEX Spain Export and Investment, and Andrew Allamand, Ibero-American Secretary General.
The report not only details the origin, destination and sectors of this growing Latin American investment in Spain, but also introduces for the first time the innovative GLOBAL LATAM Index of MultilatinasThis tool is designed to measure the degree of internationalization of the most prominent companies in Latin AmericaFurthermore, the analysis delves into Spain's crucial role as a platform and bridge for these companies to access the European market, offering a detailed overview of the phenomenon.
Experts point out that the «growing influx of Latin American capital into Spain This is not a passing trend, but a "structural phenomenon." Multiple factors are driving this trend, allowing us to anticipate continued growth in the coming years. Spain, a high-income market with 48 million consumers and the fourth largest economy in Europe by population, offers privileged access to the vast European market. Added to this, as the Global LATAM report emphasizes, is remarkable political, regulatory, and institutional stability, a stable currency (the euro), and controlled inflation under the safeguard of [the relevant regulations/institutions]. European Central Bank, factors that position Spain as a safe haven asset.
Despite a global context marked by geopolitical tensions, disruptions in thesupply shortages and a volatile international political environment, Foreign Direct Investment (FDI) received by Spain from Latin America in 2024 reached 2.178 millones de eurosAlthough this figure represents a 5,3% decrease compared to 2023, it remains in line with the average of recent years.
During the presentation, Elisa Carbonell, CEO of ICEX, emphasized that "Global LATAM is now an essential tool for understanding the evolution of Latin American investment and for anticipating future trends." She stressed that this new edition confirms that "Spain is now consolidating its position as the bridge to the European Union for Latin American capital and companies, which are becoming increasingly internationalized, despite the complex international landscape."
For his part, Andrés Allamand, Ibero-American Secretary General, highlighted the strength of the business internationalization of the region, evidenced by an increase of almost 50% in the investment issued by Latin America and the Caribbean at a global level in 2024. Allamand also highlighted the importance of Latin America is the fourth largest investor in Spain and that, reciprocally, Spain is the second extra-regional destination for Latin American capital.
More than 600 companies and 44.000 direct jobs
The report details that Latin America is the fourth largest investor in Spain, preceded by powers such as United States, United Kingdom and FranceA total of 20 Latin American countries have active investments in Spain, forming a robust business community that exceeds the 600 companies and generates more than 44.000 direct jobs.
In the breakdown by issuing markets, Mexico leads by a notable margin, contributing 33.902 billion euros (50,2% of total Latin American investment). This positioning makes Mexico is the first middle-income country in terms of investment volume in Spain, far outperforming other emerging economies. It is followed by Argentina, with 10.569 million (15,8%); Brazil, with 6.144 million (9,2%); Colombia, with 6.023 billion (9%), standing out as the Latin American country whose investment is experiencing the fastest growth in Spain; and Uruguay, with 3.606 million (5,4%).
Considering investments in Foreign Securities Holding Entities (ETVE) or holding companies, the volume of Latin American investment in Spain amounts to the aforementioned €66.845 billion.
The report introduces this year's GLOBAL LATAM Multilatinas Index (IGLM), which identifies the most internationalized Latin American companies.
Diversified and High Value-Added Sectors
Between 2020 and 2024, Spain attracted 360 projects greenfield (investments in new facilities) from Latin America, according to data from FDI Markets analyzed in the report. This figure places it ahead of the United States (with 1.017 projects attracted by Spain from there) and well above other European destinations such as France (103 projects from LatAm), Germany (89), Portugal (83) or Italy (34). In fact, Spain receives more projects greenfield from Latin America than the rest of the European Union as a whole.
The sectoral distribution of these projects over the last twenty-one years demonstrates a diversified profile and a clear commitment to high added value activities. The Software and ICT It stands out as the main destination, with 82 projects, confirming the "significant arrival" of Latin American service firms and technology startups. It is followed by Financial Services (45 projects), Food & Beverage (34 projects), and the sector Textile (25 projects). In total, Latin American business presence extends across 25 different economic sectors.
Trained Companies and a New Internationalization Indicator
Globally, FDI flows issued by Latin America and the Caribbean in 2024 reached an estimated 53.035 million, a 49% increase over the previous year. This figure marks the third highest annual record in the historical series. Brazil, Mexico, Chile, and Colombia account for more than 85% of this outbound investment.
The report introduces this year the GLOBAL LATAM Multilatinas Index (IGLM), which identifies the most internationalized Latin American companies based on variables such as sales and employment abroad, geographic coverage, and financial solvency. The IGLM includes 348 companies with sales exceeding US$2.500 billion. The ranking is led by companies such as Tenaris (Argentina, metals), Orbia (Mexico, chemicals), Nemak (Mexico, manufacturing), Bimbo (Mexico, food), and Cemex (Mexico, cement). By country, Brazil leads the number of companies (19), although Mexico has the highest IGLM average.
Prospects for Continued Expansion
Looking ahead, Global LATAM 2025 projects that Latin American investment in Spain will continue its upward trajectory. “The strengthening of economic ties between both regions is generating an increasingly integrated and dynamic business ecosystem,” the study states. Emerging sectors such as technological innovation, renewable energy, digitalization, and business process outsourcing are gaining prominence, opening up new opportunities. In this context, the report highlights the rise of “startups led by young Latin Americans trained in Spain,” which bodes well for greater dynamism and innovation.
The conclusion is clear: with proper planning and a smart alliance strategy, "Spain will continue to play a key role as a bridge for the internationalization of Latin American companies to Europe and the world."
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
