Since its implementation in 2020, Spain's Foreign Direct Investment (“FDI”) control regime has experienced constant growth in the number of notifications each year, alongside the regulator’s increasing efforts to shed some light on a complex and occasionally ambiguous legal framework applicable to certain transactions coming from abroad.

According to the most recent report on FDI flows in Spain in 2024, published by the Spanish Directorate General for Trade and Investment (Dirección General de Comercio e Inversiones), Spain attracted a total of EUR 40,047 million in FDI transactions, representing a significant increase of 22% compared to the figures shown in the 2023 report.

But what commercial trends lie behind the Spanish FDI inbound flows? 

Main forms of FDIs in Spain

Almost 92% of FDIs made in Spain during 2024 were classified as productive investments, which may reflect a strong commitment to sectors that drive long-term economic growth and a more cautious approach in certain speculative markets.

A notable factor in this year’s data is that less than 5% of FDIs in Spain were directed towards listed companies (EUR 1,771 million). This suggests that investors generally see greater potential in privately held enterprises in a national economy mostly based on Small and Medium Size Enterprises (SMEs), possibly due to their flexibility, innovation potential, and strategic expansion plans. 

Breaking down the productive investment structure, new capital contributions seem to be the preferred option for investing in Spain, accounting for 80.5% of FDI, whereas pure acquisitions of national companies only account for 19.5% of FDI. In particular, greenfield and brownfield investments have kept growing in the last couple of years, demonstrating continued confidence in Spain as a hub for business expansion.

Most affected sectors by FDIs in Spain

According to the 2024 report, the vast majority of FDI in Spain continues to be related to the services sector, followed by the industrial sector. Within the services sector, the information services industry stands out as the top performer in terms of growth. In 2024, FDI soared from EUR 21 million to EUR 2,638 million. This sharp increase may be related to key areas such as data management or emerging technologies, like AI, which can generally be subject to the national FDI prior authorisation regime.

Within the industrial sector, the electricity, gas, steam and air conditioning supply sub-sector received the highest FDI in2024, consolidating its position as another high-growth area compared to 2023. This data may suggest foreign investors are more selective in promoting investments in key strategic areas such as energy and tech. 

The sectors with the lowest levels of FDI, however, have been accommodation services, financial services, and architectural and engineering technical services. Despite this, these sectors still showed asubstantial increase in FDI compared to the previous year. When considering investment stability over the past three years, telecommunications and real estate activities have demonstrated the most consistent data and steady growth. These sectors represent 13.9% and 5.2% of the FDIs in Spain this year, respectively.

Upcoming changes

In 2023, the Spanish External Investment Board (Junta de Inversiones Exteriores) formally reported a total of 97 FDI control requests for authorisation. Although there is no official data available yet regarding the number of FDI notifications submitted in 2024, this number appears to be increasing, following the trend from previous years. 

The Unit of Foreign Investments (Subdirección General de Inversiones Exteriores) is expected to release further details later this year on FDI control and the Spanish prior authorisation regime. This will include valuable insights into the number of operations submitted for review, and their evolution compared to 2023. Moreover, further amendments to the prior authorisation regime are anticipated as part of ongoing efforts to strengthen the national FDI control framework, along with new guidelines to support interpretation and best practices in an area still characterised by a certain degree of legal uncertainty.

For further information on the key legal and economic updates about FDI in Spain, you can see our articles featured in the October 2024 and February 2025 newsletter editions.

If you need more information or further guidance in this area, please contact Candela Sotés.

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