Luxury: European Countries That are Holding up Better Than France or Italy

The Spanish luxury goods market was estimated at around $7 billion in 2025, with annual growth expected to be around 5% until 2030, driven by tourism and growing domestic demand. In recent years, Spain has gradually overtaken Italy in terms of the economic value generated by tourism, demonstrating a greater ability to capture high-potential flows, particularly in the luxury segment.

While Italy, a dominant competitor in the high-end sector, remains an unrivalled cultural powerhouse, Spain has implemented a more integrated model combining hotels, retail, premium services, and attractive tax policies. The result is less fragmented tourism that is more focused on spending, particularly international spending. At the heart of this transformation is Madrid, which is increasingly moving away from its image as an “affordable” destination and closer to that of a European hub for high-end shopping. The major luxury shopping streets, from Serrano to Ortega y Gasset, are undergoing a new phase of investment, with flagship stores, five-star hotels, and gastronomic offerings in line with the highest international standards. In addition to these addresses, there are luxury shopping centers such as Serrano 47 and Galeria Canalejas, offering VIP services (personal shoppers and tax assistance). We are also seeing the opening of several high-end concept stores such as WOW Concept Serrano, covering 6,400 m² and combining traditional and emerging brands.

Recently, the Madrid Luxury District Association was created to organize regular events and activities (Christmas markets, art exhibitions) around high-end boutiques, enhancing the exclusive shopping experience.

Tax-free shopping is emerging as one of the major drivers of the upmarket trend in Spanish tourism, an area in which Spain has distinguished itself with a speed of recovery and dynamism that is significantly higher than that observed in the rest of Europe.

Driven by the return of non-European customers, tax-free spending has accelerated dramatically, rising by around 164% between June 2023 and May 2024 compared to pre-pandemic levels. Over this period, non-EU tourists generated nearly €2.5 billion in tax-free spending, confirming the strategic importance of this segment in the country's tourism economy. This performance was largely driven by luxury goods, which alone account for 50% of tax-free spending, illustrating Spain's ability to attract international customers with high purchasing power.

The country therefore represents a discreet but crucial rise in the world of luxury. The best concrete example of success remains Puig, which in just a few years has become one of the best-performing European luxury groups. After achieving record sales of €4.79 billion in 2024 (compared to €4.3 billion in 2023), Puig has established itself as a global leader in luxury perfumes, a segment that is more resilient than fashion, less exposed to cyclical effects, and easily exportable.