International postgraduate education has become a major source of economic activity for Spain, with foreign students enrolled in master’s and other postgraduate programmes generating an estimated €3.27 billion for the economy, according to the Spanish foreign trade agency ICEX. The figure represents 39.4% of the total economic impact generated by international students, even though postgraduate students account for less than 13% of the foreign student population.
Spain received about one million international students during the 2023-24 academic year, producing an overall economic impact of €8.316 billion, up 30% from the previous year. The contribution, including academic spending and the wider effects of accommodation, health insurance, transport and leisure, was equivalent to 0.55% of Spain’s gross domestic product, ICEX said.
The postgraduate segment is expanding particularly rapidly. There were 78,120 international students enrolled in master’s and postgraduate programmes in the period covered by the ICEX analysis, an increase of 41.9% in five years. Ministry of Universities figures show that the number rose further to 89,449 in 2024-25, an annual increase of 14.5%.
Business schools and universities are reporting continued demand. At IE Business School, Spanish students account for only about 10% of the 2,500 master’s students this year, with Americans, French, Italians, Germans, Mexicans and Indians strongly represented. Mar Hurtado de Mendoza, vice-president of IE University, said the institution was continuing to see growth in both general and specialised programmes.
International students also make up a substantial share of postgraduate enrolment at major public universities. The University of Barcelona had 1,822 foreign students in its master’s programmes last year, representing 31% of the total. At the Autonomous University of Barcelona, foreign students accounted for 39% of master’s enrolment, with 958 studying official master’s degrees and 745 enrolled in its own programmes. Its rector, Javier Lafuente, said students were attracted by the university’s prestige and that the institution was seeking to maintain that appeal through programme quality and research.
At IESE Business School, international students now account for 90% of the MBA cohort, and Brazilians and Indians have overtaken Spaniards as the largest nationalities for the first time. The school has about 1,800 master’s students.
ICEX attributes part of Spain’s growing appeal to tighter restrictions on international student entry in countries including the United States, United Kingdom, Canada, Australia and the Netherlands. Hurtado de Mendoza said students from countries such as China and India that traditionally looked to the United States for postgraduate study were increasingly considering Spain. Chinese students are the largest foreign nationality in master’s programmes at the Autonomous University of Barcelona.
The expansion also exposes weaknesses in Spain’s international recruitment model. Latin American students represented 72.9% of foreign postgraduate enrolments last year, prompting ICEX to recommend greater diversification towards south-east Asia and the United States. International enrolment has also grown far more strongly in private institutions than public universities. Public universities offered 2,942 master’s programmes and enrolled 47% of foreign students, while private institutions enrolled 53% despite offering only 1,224 programmes.
ICEX attributes the difference partly to admissions procedures, English-language provision and assistance with visas, accommodation and insurance rather than price. Private institutions spend more on international recruitment, while visa processing has become a growing difficulty, according to Lisa Hehenberger, dean of Esade Business School.
Cost remains a barrier for many students, with MBA tuition at leading business schools approaching €100,000. IESE and Esade have responded with flexible loan schemes backed by the EU’s InvestEU Fund, allowing students to repay after graduation according to their income. At IESE, the number of beneficiaries rose from about 45 last year to 130 this year, while Esade provided 117 below-market-rate loans last year, 74 of them to master’s students.
