In southwestern Europe, occupying the Iberian Peninsula, stands the country of Spain. Its rich culture, strong traditions and extensive coastline make it a popular place to visit. Included among the top 20 largest economies in the world, and one of the largest in the European Union (EU), Spain is a strong environment for business.

Despite a minor setback during the 2008-2009 global recession, Spain has remained a leading force in the EU, accounting for about 12% of the eurozone’s economy. Its long-standing prosperity can be attributed to tourism and the manufacturing of pharmaceuticals, textiles, apparel, footwear and chemicals.

Today, the European country is only getting stronger. In the last quarter of 2025, Spain surpassed expectations after growing by 2.8%, according to the National Statistics Institute (INE). Gross domestic product (GDP) rose by 0.8% in the fourth quarter, a 0.6% increase from the previous three-month period, according to INE’s flash estimate, Reuters reported. Analysts polled by Reuters had expected GDP to grow 0.6% quarter-on-quarter.

This advancement is supported by a flourishing tourism sector, satisfactory energy conditions and effective household spending. Last year, Spain hosted a record 97 million tourists. “If growth continues this year, we will reach ⁠100 million foreign tourists,” Jordi Hereu, Spanish Tourism Minister said, according to Travel Tomorrow.

In the past year, the country’s energy sector grew significantly, with green energy exceeding 56% of total electricity generation in 2025, driven by a massive solar PV expansion of nearly 7.9 GW. As the country enters 2026, the focus shifts to integrating this capacity to manage grid congestion, while overall demand and generation continue to rise.

Spain’s household consumption rose by 1% and investment increased by 1.7% in the final quarter, while public spending remained stable at 0.1%, per Euronews. Tourism contributed to a surge in Spanish services activity, resulting in a 0.8% increase. Construction productivity rose by 2.1%.

Additionally, an increase in domestic consumption stood as a major driver for growth. Decreased energy prices and reduced inflation helped maintain consumer confidence and boosted spending. Spain’s annual inflation rate fell to 2.4% in January from 2.9% in December, slightly exceeding analysts’ estimates of 2.3%, according to Trading Economics. The third consecutive slowdown in price growth and the lowest inflation reading since June 2025.

In December, Spanish customers averaged nine days beyond terms, according to FCIB’s Credit and Collections Survey. Results showed that 40% of respondents did not experience payment delays, while 20% reported an increase in delays, 20% noted a decrease and 20% saw no change.

The primary reasons cited for payment delays in Spain were cash flow issues, customer payment policies and unwillingness to pay, each reported by 67% of respondents. When working with Spanish customers, one survey respondent advised adhering strictly to Know Your Customer (KYC) practices, while another recommended using bank guarantees to help ensure timely payment.