A Comprehensive Guide to Investing in Spain

Many Spanish companies are listed on the domestic stock exchange, and almost anyone can become a shareholder. Spaniards themselves make active use of this opportunity. La Cotorra explains which companies trade on Spain’s financial markets, how to begin investing, and which instruments may be suitable for different aims.

According to BlackRock, around eleven million people invest in the Spanish stock market, representing 28 per cent of the adult population. Of these, 47 per cent hold shares and bonds. Although the Spanish stock market is far smaller than its American counterpart in terms of trading volume, investor activity and diversity of instruments, it still allows investors to acquire stakes in the country’s major enterprises and potentially profit from them.

Choosing How to Buy

It is important to decide through which service to purchase Spanish shares. There are two primary options: traditional brokers or neobanks. The final choice depends on the investor’s goals, planning horizon and the amount of capital involved. Investors with Russian passports must also consider potential sanctions-related complications, especially if EU residency is lost.

Traditional brokers — for example Interactive Brokers, Saxo Bank or BBVA Broker — can be described as expensive but reliable. Their disadvantages include a relatively complex interface and the presence of fees (for trading and sometimes for custody). In return, they offer secure and transparent asset protection and a broad range of instruments. Client assets are typically held separately from those of the broker, which is crucial in the event of bankruptcy.

Neobanks — such as Revolut, N26 or Trade Republic — prioritise convenience, although their transparency and reliability are sometimes questioned. They offer very simple interfaces, may not charge commissions, and allow fractional share purchases. However, these platforms do not always provide direct exchange access: trading may occur through designated market-makers or internal models, which can result in less favourable prices. Neobanks may not segregate client assets and often provide a limited selection of instruments. Many do not offer access to the Spanish exchange directly but instead to Germany’s Xetra, where some Spanish equities are unavailable.

What to Buy

Several hundred companies are listed in Spain. The thirty-five largest constitute the IBEX 35 index, which reflects the general state of the Spanish stock market. It consists mainly of financial institutions, energy and oil-and-gas companies, consumer goods producers and telecommunications firms — together accounting for more than 80 per cent of the index’s capitalisation.

At the opening of trading on Monday 5 May, the IBEX 35 stood at 13,446.70 points. It recently recovered from a drop of more than ten per cent caused by Donald Trump’s tariffs. Overall, the index is performing well: it has risen more than 15 per cent since the start of the year and has nearly doubled in the past five years.

There are two principal ways to earn from shares: dividends and price appreciation. It is relatively rare for a company to offer both high growth and substantial dividends. Therefore, we examine separately the strongest dividend payers, the fastest-growing shares and those for which analysts predict the greatest potential. We limit ourselves to IBEX 35 constituents due to higher liquidity and narrower spreads.

Top Five Dividend Shares

Enagas (ENG)

Dividend yield (last 12 months): 8.61%.

The company owns Spain’s national gas pipeline network and several LNG regasification plants. Sustaining this dividend is uncertain due to record losses although the company has promised to maintain payouts.
Shares have risen 14.2% this year but lost more than one-third over five years. Analysts expect a recovery of around 12% within a year.

Repsol (REP)

Dividend yield: 7.33%

Spain’s largest oil-and-gas company, operating across the full value chain. Repsol confirmed that it will continue dividends and buybacks following stronger-than-expected profits.

The share price has fallen nearly 9% this year but risen 25% over five years. Analysts forecast a further increase of around 25%.

Banco de Sabadell (SAB)

Dividend yield: 6.54%

A major bank focused on individuals and SMEs. It may be acquired by BBVA; the deal has regulator approval and awaits the government’s decision.

Shares have risen more than one-third this year and 6.5-fold in five years, but remain below their 2007 peak. Analyst consensus suggests a modest further rise of 7.7%.

Banco Unicaja (UNI)

Dividend yield: 6.36%

Spain’s sixth-largest bank. Last year’s dividends were record-high.

Shares have risen one-third this year and 3.5-fold in five years. Analyst consensus indicates potential growth of 2.7%.

Grupo Logista (LOG)

Dividend yield: 5.55%

A logistics company distributing goods from tobacco and books to medical products and hotel supplies. Considered a defensive stock.

Shares are up 4% this year and 90% over five years. Analysts forecast approx. +6% in twelve months.

Top Five Fast-Growing Shares

Selected by performance since the start of 2025.

Indra Sistemas (IDR)

A major IT and defence company producing air-traffic systems, aircraft simulators, ticketing platforms and military electronics. Shares up more than 70% this year, 3.5-fold in five years. Analysts expect a small additional increase of 1.3%.

Banco Santander (SAN)

One of the world’s largest financial institutions. Shares up more than 40% this year and tripled over five years. Forecast +10%.

Bankinter (BKT)

Spain’s fifth-largest bank. Shares up nearly 40% this year and 3.5-fold in five years. Analysts expect a slight decline of 3%.

Banco de Sabadell (SAB)

Also part of the dividend list: +33% YTD and 6.5-fold in five years.

Banco Unicaja (UNI)

Strong dividends and growth: +33% this year, 3.5-fold in five years. Further rise possible due to a planned buyback if large acquisitions fail.

Top Five Shares with the Greatest Potential

Based on analyst consensus (TradingView). Should not be the sole basis for decisions as forecasts often fail.

Grifols (GRF)

A global leader in plasma collection and producer of plasma-derived medicines. Analysts’ target price is more than 80% above current levels.

Shares are down 7% this year and have lost three-quarters of their value in five years.

Solaria Energía y Medio Ambiente (SLR)

A major solar energy producer. Target price suggests +75%.

Shares are down 20% this year and 29% over five years.

Laboratorios Farmacéuticos Rovi (ROVI)

Produced Moderna’s COVID vaccine in 2020. Forecast: +50%.

Shares down 18% this year but nearly doubled over five years.

Acciona Energía (ANE)

Producer of wind, solar, hydro and green hydrogen projects. Forecast: +44%.

Shares down 11% this year and 16% over five years.

Puig Brands (PUIG)

Owner of Nina Ricci, Carolina Herrera and Paco Rabanne. Listed since May 2024. Forecast: +39%. Shares have fallen by one-third since IPO and 5% this year.

How to Buy All Major Spanish Shares at Once

Investors can avoid choosing individual shares and buy the entire IBEX 35 through an ETF. The ETF collects investor money and purchases all 35 shares in the exact proportions of the index.

The only ETF tracking the IBEX 35 is the Amundi IBEX 35 UCITS ETF (AMES).

Accumulating version: €329.63 (2 May 2025).

Distributing version: €136.85, available only on the Spanish exchange.

Disclaimer

This article does not constitute investment advice. Only you can determine which instruments suit your circumstances. You invest at your own risk. Investments may result in losses.