IESE Insight
Spain remains attractive for foreign firms, despite taxation and bureaucracy challenges
Foreign-owned companies in Spain value the country’s skilled workforce and high-quality infrastructure but highlight the need for improvements in bureaucracy, taxation and social security costs.
- 89% of foreign companies plan to maintain or increase investments in 2025, despite global uncertainty.
- 92% expect to retain or expand their workforce.
- Infrastructure, market size and human capital remain the factors most highly valued.
The 17th edition of the Barometer of the Business Climate in Spain, prepared by ICEX-Invest in Spain, Multinationals with Spain and IESE’s International Center for Competitiveness (ICC), led by Pascual Berrone, confirms that Spain remains an attractive hub for foreign investors despite international uncertainty. In 2025, 89% of surveyed companies expect to maintain or increase their investments.
While infrastructure, market size and human capital continue to receive high marks, investors highlight the need for improvements in taxation, bureaucratic burden and labor legislation adapted to business needs.
About the study
The 17th edition of the Barometer of the Business Climate in Spain analyzes the feedback of over 700 executives from foreign-owned companies about Spain’s business environment. The study is carried out by ICEX-Invest in Spain, Multinationals with Spain and IESE’s International Center for Competitiveness (ICC), led by Pascual Berrone, and co-authored with researcher Maria Luisa Blazquez.
READ ALSO:
The war in Ukraine hinders growth for foreign investors in Spain
