The tenth edition of the Barometer on Climate and Outlook for British Investment in Spain reveals the strength of the bilateral economic ties between the two countries . In 2023, the stock of British FDI grew by 4,6% year-on-year , representing 11,2% of total FDI in Spain.
British investment shows a marked historical concentration , with the following sectors standing out in 2023 by stock volume :
Telecommunications: 9.287 billion euros (13,6% of the total).
Metallurgy: 6.539 billion 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
Foreign direct investment (FDI) flows from the United Kingdom reached an exceptional €12.407 billion in 2024 , driven primarily by one-off transactions in the telecommunications sector . In the first half of 2025, investment moderated to €1.077 billion , positioning the United Kingdom as the second largest investor in Spain, behind only the United States.
In the first half of 2025, flows were concentrated in Information Services (37% of the total) and Telecommunications (17,4% of the total) . The productive nature of British FDI remains, with 95,6% of historical flows not being of the ETVE (Foreign Securities Holding Entities) type.
UK FDI contributed 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 were direct jobs and 137.260 were indirect jobs.
The Community of Madrid is historically consolidating its position as the main recipient of flows , absorbing nearly 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 positive expectations for the Spanish economy . 64 % of the companies surveyed stated their intention to increase their investment volume by 2026. The main motivation for maintaining or expanding investment is the expansion of business lines (72%) , followed by the development of digital transformation and innovation (both at 39%).
However, medium and long-term investment faces challenges identified in focus groups with companies:
Regulatory and Fiscal Uncertainty: Institutional volatility , regulatory fragmentation, and a 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 makes retention difficult, although Spain is positioning itself as an attractive destination for middle managers.
Sustainability: Although there is a growing commitment to decarbonization, companies warn about the lack of adequate incentives and the regulatory complexity for the implementation of green initiatives, such as the CBAM.
In short, British investment in Spain appears resilient and with a sustained commitment , but improvements in the regulatory environment and talent management will be crucial to ensuring its long-term growth.
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