Like several other European countries, Spain faces demographic challenges linked to an ageing population and low birth rates. Photo credit: Renata Photography/Shutterstock
More than half of the immigrants who arrive in Spain eventually leave again, according to a new report from Spanish economic think tank Funcas, which says high housing costs, insecure employment and limited long-term stability are making it difficult for many foreign workers to remain in the country.
The study examined migration patterns between 2002 and 2024 and found that around 15 million foreign nationals arrived in Spain during that period. However, the country’s net increase in foreign population was only around seven million people, indicating that a large proportion later moved elsewhere or returned to their countries of origin.
Researchers said the figures place Spain among the European countries with the lowest immigrant retention rates, with only around 48% of arrivals remaining in the country over the long term.
Housing and unstable work linked to departures
According to the report, the main reasons many immigrants leave Spain are connected to economic pressures, particularly difficulties accessing stable employment and affordable housing. The report suggested that many migrants initially arrive to work in sectors such as hospitality, agriculture, construction and care services, where labour shortages continue in parts of the economy. However, temporary contracts, seasonal employment and lower average wages compared with some other European countries often make long-term settlement difficult.
The report also highlighted the growing cost of housing as a major factor. Rising rents in cities including Madrid, Barcelona, Valencia and Málaga have increased pressure on lower-income households, including many foreign workers. Researchers noted that limited housing supply and increasing competition for rental properties can leave many migrants in temporary or overcrowded accommodation, particularly in larger urban areas and tourist destinations.
Spain remains dependent on immigration
Despite the high number of departures identified in the report, Spain continues to rely heavily on immigration to support workforce demand and population growth. Like several other European countries, Spain faces demographic challenges linked to an ageing population and low birth rates. Economists have repeatedly argued that immigration will play an important role in maintaining labour supply and supporting public services in the future.
The Funcas study warned, however, that attracting migrants may not be enough if many continue to view Spain as a temporary destination rather than a place to settle permanently. Researchers argued that immigration policy cannot be separated from wider economic issues such as housing affordability, salary levels and employment conditions. Without improvements in these areas, they suggested that Spain may struggle to retain workers over the long term.
Pressure grows on rental market and services
Housing affordability has become one of Spain’s most sensitive political and social issues in recent years. Rental prices have risen steadily across many major cities and coastal areas, while housing construction has not kept pace with demand in some regions. The study suggested that migrants are often particularly affected because many arrive without established support networks and frequently work in lower-paid sectors of the economy.
Several migrant support organisations have also raised concerns over overcrowded living conditions and difficulties accessing secure rental accommodation. In some areas, high tourism demand and the growth of short-term rentals have added further pressure to the housing market. At the same time, businesses in sectors already facing labour shortages have warned that difficulties retaining foreign workers could create additional staffing problems. Hospitality, agriculture and care services are among the industries most dependent on migrant labour in Spain.
Debate over migration policy expected to continue
The report is likely to add to ongoing political debate surrounding immigration, housing and economic policy in Spain. Successive governments have promoted immigration as part of the solution to labour shortages and demographic decline. However, the Funcas findings suggest that long-term integration may become increasingly difficult if living costs continue to rise faster than wages.
Researchers concluded that Spain’s challenge is no longer only attracting migrants, but ensuring conditions allow people to remain in the country over time. The report argues that improving access to housing, increasing employment stability and strengthening long-term economic opportunities will be essential if Spain wants immigration to remain a sustainable part of its economic and demographic future.
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