While the broader European luxury retail landscape continues its post-pandemic recovery, Spain has demonstrably surged forward. Recent data from Global Blue indicates a notable 5 % increase in tax-free spending by non-EU visitors in Spain through September 2025, year-on-year. This impressive figure not only surpasses the global average of 2.5 % but also exceeds Europe’s overall growth of 4 %.
Indeed, the data substantiates observations across Madrid’s Calle Serrano, Barcelona’s Passeig de Gràcia, and Marbella’s Puerto Banús throughout the summer months: Spain is steadily solidifying its position as a leading destination for luxury shopping tourism within the continent.
Americans Replace Chinese as the Biggest Spenders
A significant change is apparent:
Shoppers from the United States have dramatically increased their tax-free spending, tripling it across Europe and quadrupling it specifically within Spain, thereby overtaking China to secure the top position. Currently, China, alongside the Gulf nations (UAE, Saudi Arabia, and Qatar), shares the second-place ranking.
Despite Chinese travelers maintaining a dominant share of global luxury spending in absolute terms, their spending has largely shifted towards destinations closer to home, notably Japan, since the borders reopened. Across Europe as a whole, tax-free purchases by Chinese travelers remain substantially below the levels seen in 2019.
However, Spain stands as an exception to this trend. According to Ainara Andueza, General Director of Global Blue Spain, “The Chinese market is showing a quicker recovery here than in the rest of Europe.” She further added, “We anticipate a rapid resurgence in their activity when exchange rates and perceptions become more favorable.”
Another distinguishing factor for Spain is the significant presence of shoppers from Latin America. Tourists from Mexico and Venezuela, who are less prominent in cities like Paris or Milan, hold a particularly strong presence on the Iberian Peninsula, attributable to shared language, cultural connections, and convenient direct flights.
Gen Z Is the Fastest-Growing Luxury Customer
The future of luxury retail is already evident in the patronage of brands such as Loewe, Puig, and related stores. Generation Z now accounts for approximately 12 % of global luxury tax-free spending and demonstrates a growth rate double that of any other age demographic. In Spain, their contribution has risen to 20 %, aligning with the European average.
What are their preferences? They seek personalization, community engagement, and a seamless integration of physical and digital experiences. For brands and retailers, this translates to the importance of TikTok-worthy store designs, limited-edition product releases, and exclusive events, all of which are as crucial as the products themselves.
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From Mass Tourism to High-Impact Tourism Strategies
There’s a deliberate redirection of the country away from sheer volume and towards higher value by political figures and industry leaders.
Xandra Falcó, president of Círculo Fortuny (Spain’s analogue to France’s Comité Colbert), articulated the vision: “Today’s luxury traveler prioritizes well-being, authenticity, and purposeful experiences. By aligning vision, investment, and narrative, Spain has the potential to become a global leader in high-impact tourism.”
Echoing this sentiment, Madrid’s mayor, José Luis Martínez-Almeida, stated at the report’s presentation: “Our success is no longer gauged by the number of tourists, but by their spending and their inclination to return. This necessitates creating memorable, unique Madrid experiences — more than just an increase in foot traffic.”
Reasons Behind Spain’s Current Success
Several factors have contributed to the rise in luxury shopping tourism:
A relatively weaker euro is making European luxury goods more affordable, notably for shoppers using the U.S. dollar. The recovery of direct, long-haul flights has favored Spain over more conventional entry points like Paris or London.
A deliberate promotion of “quiet luxury” destinations (such as Mallorca, Ibiza during the off-season, the Costa del Sol, and the Basque Country) offering an air of exclusivity. A developing image for genuine, design-focused hospitality, which nicely complements high-end fashion and jewelry purchases.
Consequently, while cities like Paris, Milan, and London are focused on regaining Chinese tourist numbers, Spain is successfully attracting new, high-spending visitors from other countries — and retaining them for longer periods.
As Andueza summarized, “Spain is not merely recovering. In numerous areas, we are setting a new standard for Europe as a whole.”
Luxury brands and retailers that remain primarily focused on pre-pandemic Chinese tourist patterns should consider diversifying their strategies. The implication is unmistakable: looking ahead to 2025 and further into the future, sustained growth hinges more and more on key Spanish hubs like Madrid, Barcelona, and indeed Marbella – not just the traditionally dominant capital cities alone.