Spain

Spain's Kearney 2026 Foreign Direct Investment Confidence Index ranking fell four positions to 15th globally, with the report citing public debt at approximately 103% of GDP, structural unemployment, and the extension of the FDI screening mechanism through December 2026 as the principal investor-confidence headwinds. Inbound FDI excluding Foreign Securities Holding Entities (ETVE) totalled €30.76 billion in 2025, representing a year-on-year decline of 21.8% according to the State Secretariat for Trade's DataInvex registry.

Idealista / Kearney FDI Confidence Index 2026 · 2026-04-22

Royal Decree-Law 1/2025, issued on 29 January 2025, extended the requirement for prior authorization of FDI by EU and European Free Trade Association (EFTA) residents until 31 December 2026, applying to investments exceeding €500 million or those involving listed Spanish companies. The measure, originally introduced under Royal Decree-Law 8/2020, aims to maintain government oversight of strategic-sector transactions affecting public order, security, and public health.

UNCTAD Investment Policy Monitor · 2026-05-22

Spain's Co-Investment Fund (FOCO), a €2 billion instrument under the Recovery, Transformation and Resilience Plan (RTRP) Addendum, has been activated by Council of Ministers agreement to attract foreign capital and support productive modernization, sustainable growth, and the ecological and digital transition. The fund is managed through ICEX Spain Export and Investment and is operational through 2026, providing a co-investment vehicle for market entrants targeting strategic sectors.

Spanish Ministry of Economy, Commerce and Business (Press Releases) · 2026-05-22

The United States administration's threat to sever trade relations with Spain—following Spain's refusal to permit use of its military bases for operations related to Iran—has introduced bilateral diplomatic friction, though Spanish officials have characterized relations as normal. Any unilateral US trade action would face structural legal constraints, as Spain's trade policy is set at the EU level; goods trade between the two countries was valued at approximately $47 billion in 2025.

Global Trade Magazine / IndexBox (citing Euronews) · 2026-03-17

Spain's State Secretary for Trade attended the EU Foreign Trade Council in Brussels, where Spain advocated for diversification of EU trade relations—particularly toward Mercosur and Southeast Asia—and reaffirmed commitment to a constructive transatlantic relationship with the United States. The session also addressed the future of EU-US trade relations and the EU's economic security framework.

Spanish Ministry of Economy, Commerce and Business (Press Releases) · 2026-05-22

CaixaBank Research analysis indicates that US tariff increases of 10–20 percentage points are expected to have a limited direct impact on Spain, given that Spanish goods exports to the US represent only 1.1% of GDP. However, the slowdown of key trading partners and elevated global uncertainty are projected to weigh on investment decisions and the activity of Spain's export-intensive productive sectors.

CaixaBank Research · 2026-05-22

Spain's real GDP expanded 0.6% quarter-on-quarter in Q1 2026, decelerating from 0.8% in Q4 2025, with year-on-year growth of 2.7%; the slowdown reflected weaker private consumption, a contraction in exports, and reduced fixed investment amid a more hostile international environment. The European Commission's Spring 2026 Economic Forecast projects full-year GDP growth to remain solid, supported by domestic demand, while the unemployment rate is expected to fall below 10% for the first time since 2008.

FocusEconomics / European Commission Spring 2026 Economic Forecast · 2026-05-21

Harmonized Consumer Price Index (HICP) inflation is projected by the European Commission to reach 3% in 2026, driven by the surge in energy prices and pass-through to food and industrial goods, with core inflation remaining sticky. The IMF's 2026 Article IV Mission projects GDP growth of approximately 2.1% for 2026, with downside risks concentrated in prolonged Middle East conflict, elevated energy prices, and domestic political fragmentation.

IMF 2026 Article IV Mission / European Commission · 2026-03-20

The OECD projects Spain's economic growth to ease from 2.9% in 2025 to 2.2% in 2026 and 1.8% in 2027, with investment underpinned by ongoing RTRP disbursements and lower financing costs. The IMF recommends accelerating discretionary fiscal consolidation to rebuild fiscal space ahead of projected sharp increases in aging-related pension, health, and long-term care spending from the early 2030s.

OECD Economic Snapshot – Spain · 2026-05-22

On 24 March 2026, Spain's Council of Ministers approved a Royal Decree activating the mandatory business-to-business (B2B) electronic invoicing obligation under Law 18/2022 (Crea y Crece), requiring structured, machine-readable invoice files and effectively ending the use of PDFs and paper invoices between companies. A Ministerial Order—subject to a public consultation that closed 8 May 2026—is still required before enforcement timelines take effect; if published in H1 2026, large companies would be required to comply from 2027 and SMEs from 2028.

Thomson Reuters Regulatory Updates – Spain · 2026-05-08

Spain's 2026 regulatory environment for businesses has been characterized by multiple short-lived tax measures, with several Royal Decree-Laws entering and exiting force within weeks, creating compliance risk for operators. Measures that have been ratified and remain in force include Royal Decree-Law 7/2026 (energy crisis tax mitigation), Royal Decree-Law 6/2026 (Personal Income Tax changes on compensation payments), and Royal Decree-Law 5/2026 (tax relief for extreme weather damage in Andalusia and Extremadura).

LEIALTA Tax Advisory · 2026-04-14

From January 2026, financial institutions—including fintechs such as Revolut and Wise—are required to submit monthly reports to the Spanish Tax Agency (AEAT) covering bank account balances, card and mobile payment transactions, and cash operations above €3,000, under Royal Decree 253/2025. This expanded financial reporting framework, which also covers foreign entities operating in Spain without a permanent establishment, increases tax-compliance obligations and data-disclosure requirements for all businesses receiving digital payments.

Spanish Tax Agency (AEAT) / EBF Consulting · 2026-05-22