【Spain】Tourists Drive Luxury in Spain: They Buy 70% of Jewelry and 50% of Clothing

The luxury market in Spain represents barely 4.5% of the total European market and 1% of the global market, but has demonstrated particular dynamism in recent years. According to data analyzed in the report, jewelry and leather goods have been two of the most resilient sectors within the luxury industry, with sustained demand driven by high-spending tourism. The Spanish capital accounts for 65% of sales in this category, solidifying its position as a key destination for major international brands.
The attraction of tourists to luxury jewelry is due to several factors. One of the main ones is the favorable tax regime compared to other European countries. In Spain, the VAT refund system for non-EU visitors incentivizes the purchase of high-value products. Furthermore, brands have strengthened their presence on main commercial arteries, such as Madrid’s Golden Mile or Barcelona’s Paseo de Gracia, turning these cities into reference points for the international consumer.

The profile of the buyer has changed in recent years. While high-net-worth individuals remain the main driver of demand, the market has diversified. The report highlights that 25-30% of the sector’s growth has been driven by ultra-high-spending clients, those who allocate more than 70,000 euros annually to luxury goods. However, an increase in aspirational buyers has also been observed, who spend between 3,000 and 10,000 euros per year and represent between 10% and 15% of sales.

Brands have adapted their strategies to attract these consumers with a more varied offering, from limited editions to personalized in-store experiences.

This change in mindset has led to a boom in exclusive services, such as the personalization of pieces or access to private collections in boutiques closed to the general public.
International tourism not only drives jewelry sales but also fashion sales. According to the report, foreign consumers represent approximately 50% of purchases in this segment, with a special concentration in Madrid, where this percentage reaches the same level. Catalonia and the Balearic Islands, for their part, record 15-20% international clientele in this market.

Despite the recorded growth, sector executives view the immediate future with caution. The report indicates that the general sentiment among luxury executives has shifted from moderate optimism in 2024 to greater concern for 2025. Economic slowdown in some key markets and geopolitical volatility are factors that could affect spending on high-end goods, especially among more aspirational buyers.
However, Spain maintains positive expectations for luxury jewelry, thanks to its appeal as a tourist destination and its reputation in the sector. The growing presence of Asian buyers and the increase in American tourism are offsetting the decline in consumption in other regions. Furthermore, the local industry remains a benchmark in the production of high-quality pieces, with enclaves like Córdoba or Valencia playing a key role in manufacturing jewelry for international brands.

Faced with this outlook, the sector faces the challenge of retaining international buyers and reinforcing Spain’s image as a luxury hub. The report outlines a series of strategies for the coming years, including optimizing the shopping experience and digitizing sales channels. The integration of new technologies, such as augmented reality for piece personalization or online assisted sales services, is emerging as one of the most important bets for the sector.
The industry will also have to face the growing competition from other European markets, such as France and Italy, where brands have intensified their strategies to attract high-spending tourists. In this regard, the report highlights the need to strengthen the “Spain Brand.”