Spain has become a luxury shopping destination

While Europe’s broader luxury retail landscape continues to recover from the pandemic, Spain is clearly moving forward. The latest data from Global Blue indicates a significant 5% increase in tax-free spending by non-EU visitors in Spain in the year to September 2025. This impressive number not only surpasses the global average of 2.5% but also exceeds Europe’s overall growth of 4%.

In fact, the data confirms the observations made during the summer months in Madrid’s Calle Serrano, Barcelona’s Passeig de Gracia, and Marbella’s Puerto Banús: Spain is constantly consolidating its position as the leading destination for luxury shopping tourism on the continent.

Americans replace the Chinese as the biggest consumers

A significant change is evident:

US consumers have dramatically increased tax-free spending, tripling it across Europe and quadrupling it in Spain in particular.Thus gaining the first position compared to China. Currently, China ranks second along with the Gulf countries (United Arab Emirates, Saudi Arabia and Qatar).

Despite Chinese travelers retaining the dominant share of global luxury spending in absolute terms, their spending has largely shifted to places closer to home, particularly Japan, since borders have been opened. Across Europe, tax-free purchases by Chinese travelers remain well below the levels seen in 2019.

However, Spain stands out as an exception to this trend. “The Chinese market is showing a faster recovery here than in the rest of Europe,” according to Global Blue Spain General Manager Anara Endosa. “We anticipate a rapid revival in their performance once exchange rates and perceptions become more favorable,” she added.

Another differentiating factor for Spain is the significant presence of buyers from Latin America. Mexican and Venezuelan tourists, less popular in cities like Paris or Milan, have a particularly strong presence in the Iberian Peninsula, attributed to a common language, cultural ties, and convenient direct flights.

Gen Z is the fastest growing luxury consumer

The future of luxury retail is already evident in the support of brands such as Loewe, Peugeot, and related stores. Generation Z now accounts for about 12% of the world’s luxury tax-free spending and is showing twice the growth rate of any other age demographic. In Spain, their share has risen to 20%, matching the European average.

What are their preferences? They are looking for personalization, community engagement, and seamless integration of physical and digital experiences. For brands and retailers, this translates into the importance of talkable store designs, limited edition product releases, and special events, all of which are just as important as the products themselves.

From mass tourism to high-impact tourism strategies

By political figures and industry leaders, it is deliberately diverted away from the country’s full volume and at a higher value.

Xandra Falcó, head of Círculo Fortuny (Spain’s analogue to France’s Comité Colbert), expressed the vision: “Today’s luxury traveler prioritizes comfort, authenticity, and purposeful experiences. By aligning vision, investment, and narrative, Spain has the potential to become a top global leader.”

Echoing this sentiment, the Mayor of Madrid, José Luis Martínez-Almeida, said at the report’s presentation: “Our success is no longer measured by the number of tourists, but by their spending and return tendencies. This requires creating memorable, unique Madrid experiences – more than just increasing traffic.”

Reasons for Spain’s current success

Several factors have contributed to the growth of luxury shopping tourism:

A relatively weak euro makes European luxury goods more affordable, especially for buyers using US dollars. The revival of direct and long-haul flights has given Spain an advantage over other traditional entry points such as Paris or London.

The deliberate promotion of “quiet luxury” destinations (such as Mallorca, Ibiza during the season, the Costa del Sol, and the Basque Country) offer exceptional weather. A progressive image for authentic, design-focused hospitality, which perfectly complements high-end fashion and jewelry shopping.

Consequently, while cities like Paris, Milan and London are focused on regaining the number of Chinese tourists, Spain is successfully attracting new, high-spending visitors from other countries – and keeping them for the long term.

As Endosa summarized, “Spain is not only recovering, in many respects, we are setting a new standard for Europe.”

Luxury brands and retailers that mainly focus on Chinese tourist patterns before the pandemic should consider diversifying their strategies. The result is unmistakable: looking ahead to 2025 and into the future, continued growth is tied to key Spanish centers such as Madrid, Barcelona and indeed Marbella – not just the traditionally dominant capital cities.