In its quarterly bulletin released on 23 December, the Bank of Spain raised its 2025 growth forecast to 2.9 %—up 0.3 points—citing “robust domestic demand, tourism recovery and immigration-led population growth”. Projections for 2026-27 were also nudged higher.
Why immigration matters
The central bank notes that net migration has added roughly 600,000 residents since 2023, bolstering consumer spending and helping to fill chronic labour shortages in hospitality, logistics and IT. Without that influx, Spain’s working-age population would have shrunk, knocking half a point off potential GDP.
Labour-market dynamics
Foreign nationals now account for 13 % of the workforce; the Bank warns, however, that many are concentrated in low-productivity services where wage gains lag the national average. Policymakers are urged to channel skilled migrants into higher-value sectors to maintain competitiveness.
![Immigration Drives Spain’s Upgraded Growth Outlook, Says Bank of Spain]()
Global mobility teams grappling with Spain’s evolving migration framework can lean on VisaHQ’s end-to-end visa and residence permit services, which simplify paperwork for both short-term assignees and long-term hires. The platform’s Spain hub (https://www.visahq.com/spain/) tracks real-time policy changes, fees and processing times, helping employers keep talent pipelines moving while avoiding costly compliance missteps.
Takeaways for mobility professionals
• Spain remains an attractive destination for corporate expansion thanks to favourable demographics compared with ageing peers such as Germany and Italy.
• Competition for skilled talent will intensify; companies may need to offer localisation support and housing allowances as rents outpace wages.
• HR should monitor upcoming regulatory tweaks—such as the pending reform of the Migration Law—that aim to streamline recognition of foreign qualifications.
Broader macro environment
Despite the upbeat forecast, the Bank warns that household purchasing power is still squeezed by food and housing costs, a gap that could stoke social-policy debates in 2026.
Why immigration matters
The central bank notes that net migration has added roughly 600,000 residents since 2023, bolstering consumer spending and helping to fill chronic labour shortages in hospitality, logistics and IT. Without that influx, Spain’s working-age population would have shrunk, knocking half a point off potential GDP.
Labour-market dynamics
Foreign nationals now account for 13 % of the workforce; the Bank warns, however, that many are concentrated in low-productivity services where wage gains lag the national average. Policymakers are urged to channel skilled migrants into higher-value sectors to maintain competitiveness.
Global mobility teams grappling with Spain’s evolving migration framework can lean on VisaHQ’s end-to-end visa and residence permit services, which simplify paperwork for both short-term assignees and long-term hires. The platform’s Spain hub (https://www.visahq.com/spain/) tracks real-time policy changes, fees and processing times, helping employers keep talent pipelines moving while avoiding costly compliance missteps.
Takeaways for mobility professionals
• Spain remains an attractive destination for corporate expansion thanks to favourable demographics compared with ageing peers such as Germany and Italy.
• Competition for skilled talent will intensify; companies may need to offer localisation support and housing allowances as rents outpace wages.
• HR should monitor upcoming regulatory tweaks—such as the pending reform of the Migration Law—that aim to streamline recognition of foreign qualifications.
Broader macro environment
Despite the upbeat forecast, the Bank warns that household purchasing power is still squeezed by food and housing costs, a gap that could stoke social-policy debates in 2026.
