Net foreign investment has plummeted by 40% in the first half of the year, especially from the still top investor in the country, the United States. This is according to official data released on Monday by the Ministry of Economy. Official sources downplay to EL MUNDO this decline in net terms and attribute it to "specific financial operations", emphasizing that "gross investment" is increasing. Net investment measures how much foreign capital is actually entering Spain, taking into account not only the money coming in but also what is divested.
In the first six months, gross investment reached approximately £10.7 billion, a 31.23% increase, a figure highlighted early on by the Ministry of Carlos Cuerpo as implying that "Spain maintains a strong appeal as a destination for productive foreign investment." However, it did not mention the so-called "divestments," which involve capital withdrawals or closures or sales of factories or companies by conglomerates or funds. Divestments amounted to approximately £7.7 billion, a 171% increase from the first half of 2025.
The combination of both data points to a net investment in Spain of only about £2.9 billion in the first half of 2026. If this trend continues until the end of the year, it would make the current year the worst in terms of net capital inflow since the 2012 crisis. In 2025, net investment for the whole year amounted to approximately £17.2 billion, already 19% less than in 2024.
The United States remains the top investor in gross terms in Spain, but ranks only 253rd in net investors. Its net investment is negative by about £825 million, a 230% decrease from a year ago, a figure that arises amid tensions with U.S. President Donald Trump.
During Joe Biden's presidency, U.S. investment in the fourth-largest economy in the eurozone exceeded £5.1 billion annually in net terms. However, in the first half of the year, it plummeted to approximately -£850 million.
Nevertheless, U.S. gross investment remains positive at approximately £2.45 billion, an 83% increase. But divestments from that country in Spain have surged to a total of approximately £3.29 billion, a 383% increase in outflows compared to July 2025, resulting in the aforementioned negative balance. "The strength of U.S. investment confirms the continued interest that Spain holds for large international companies and funds," concludes the Ministry, omitting the impact of divestments.
In the ranking of net investors in Spain, France leads with approximately £1.54 billion in the first half, followed by Portugal, Germany and South Korea. China ranks 15th with just around £47 million net, despite all the announced investment commitments. Experts consulted suggest that drawing conclusions from a six-month period is premature, but the Ministry of Economy itself positively concludes that the gross investment data "is a clear sign of confidence in our economy, our productive fabric, and the opportunities that Spain offers."
This year coincides with the end of European funds, which were expected to act as a magnet to attract productive foreign investment in, for example, semiconductor and battery factories, but the trend is downward in net terms. The Ministry highlights another indicator, that of so-called "greenfield" projects, which start from scratch rather than acquiring existing ones. "Especially positive is the behavior of 'greenfield' investment linked to the launch of new projects and production capacity, which has grown by over 52%," according to the Ministry.
By autonomous communities, the data still place Madrid as the main recipient of funds. It doubles the second, Catalonia, which in turn is getting closer to Valencia and Andalusia, according to first-half figures.
Compared to other recipients of foreign investment, Spain fares poorly in the latest UNCTAD report published last July. It ranks twentieth, down from eighth the previous year, after losing £10.5 billion in investment compared to 2024. The Ministry highlights, conversely, that in the FDI Markets index of the Financial Times, Spain ranks fourth.
The first-half data do not reflect the potential impact of various current government measures that are contradictory in attracting foreign investment.
An example is the new regulation on data centers that, according to the sector, could cause an exodus. Another is the new interministerial committee for strategic investments, which aims to streamline permits and aid for projects declared of top priority, although the discretion reserved by La Moncloa has drawn criticism from the National Commission of Markets and Competition.
The Ministry of Economy has also subjected to public consultation a review of the foreign investment control system, tightened during the pandemic to safeguard sectors deemed strategic. This is the Draft Reform of Law 19/2003, of July 4, on the legal regime of capital movements and economic transactions with foreign countries.
The loss of the European funds magnet will be an obstacle to attracting foreign investment from 2027 onwards, after six years of having this extra funding.