Spain: A Strategic Destination for Latin American Investment

Spain has consolidated itself as one of the main destinations for foreign direct investment (FDI) from Latin America, with growth exceeding 20 billion euros in the last decade.

According to the Global Latam 2024 report by ICEX-Invest in Spain, Spain is the fourth most attractive destination for investments from Latin America, after the USA, the United Kingdom, and France[1]. The report reveals that our country has received more than 66.8 billion euros from Latin American companies, which corresponds to approximately 11% of the total investment in the country.

In 2023, investment from Latin American companies in Spain increased by 138%, reaching 2.83 billion euros. Mexico led this growth as the fifth largest investor in the country, contributing 58% of the total, with 1.645 billion euros directed to key sectors such as food, chemicals, and manufacturing. In the ranking of investors, Honduras stood out in second place, followed by Argentina and Uruguay. In total, 11 countries from the region made investments in Spain.

Boosting growth for Latin American companies

Beyond cultural and linguistic ties, Spain has become a highly attractive market for Latin American companies looking to expand in Europe. In a context where many European countries face limited economic growth, Spain stands out as an exception.

According to European Commission (EC) forecasts, while the European Union as a whole will experience GDP growth of 0.9% in 2024[2],the Spanish economy will expand by 3%. With growth forecast at rates of 2.3% in 2025 and 2.1% in 2026[3], Spain continues to outperform its European neighbors. This growth is driven by solid domestic consumption, the resilience of the labor market and an increase in investment, factors that reinforce the country's attractiveness to foreign companies.

Another key factor is price stability. The EC forecasts that inflation in Spain will continue its downward trend, reaching 2% in 2026[4]. Unlike other developed markets, Spain has managed to control inflation through different policies focused on reducing spending in a text of strong growth in tax revenues.

With solid domestic consumption, Spain is positioned as a strategic destination for expanding Latin American companies. However, expanding into new markets brings with it a number of challenges. Latin American companies must support each other and seek partners with outstanding track records to ensure successful integration into the Spanish and European markets.

BME, the Strategic Partner for Latin American Business Expansion

The strengthening of economic ties between Latin America and Spain is not only due to cultural and historical factors, but also to a financial ecosystem that facilitates investment and business growth. In this context, BME play a key role in promoting two-way investment between the two regions.

In addition to the main market, BME promotes investment through specialized markets such as BME Growth and BME Scaleup, focused on small and medium-sized enterprises (SMEs) seeking to grow and finance themselves through capital markets designed for companies at different stages of development that wish to take advantage of the benefits of being listed on a European market, with regulations and costs adapted to their size, greater visibility and prestige, and attracting European sources of financing.

BME also has markets such as Latibex, where European investors can buy and sell shares of leading Latin American companies through a single market, a single currency, the Euro, and a single operating model for clearing and settlement. This initiative allows European investors to diversify their portfolio in dynamic Latin American economies while simultaneously giving Latin American companies access to international sources of financing.

To further strengthen investment flows between Spain and Latin America, it is essential to maintain a continuous dialogue between business and institutional leaders from both regions. In this regard, BME not only facilitates investment tools, but also promotes meeting and collaboration spaces to foster joint growth, such as the Latibex Forum, with more than 25 years of experience.

With a stable economic environment, privileged access to the European market and a solid financial ecosystem, Spain is positioned as a strategic destination for Latin American companies, while BME is consolidating its position as a key partner in the internationalization and expansion of business.