Immigration drives three quarters of Spain's GDP growth since 2018

A report by the Instituto de Estudios Económicos (IEE) shows that foreign‑born residents and dual‑nationality holders were the main engine of Spain’s economy between 2018 and 2025. Without immigrants, the country would have seen a decline in labour assets and consumption, and would have missed 73.9% of total GDP growth and about two‑thirds of the jobs created in that period. Their share of the population rose from 11.6% to 18.5%, adding roughly 2 million active workers and boosting consumption share from 9.6% to 16%.

The surge in foreign‑born households also strained the housing market: in 2025 about 230 000 new households were formed while only 80 000 new homes were completed, contributing to an 88% rise in house prices since 2013. Poverty risk is higher among immigrants, and the report warns that immigration alone cannot sustain growth without gains in productivity, investment and higher‑value employment.