Top 10 European countries attracting the most foreign direct investment

Valerie Charoux
4 days ago
4 min read

Investment News Europe – Here are the Top 10 European countries attracting the most foreign direct investment (FDI) in 2024 by number of projects, as well as fastest growing markets in Europe for foreign direct investment (FDI) projects, according to the EY 2025 report:

1 – What are the fastest growing markets in Europe for foreign direct investment (FDI) projects?

The fastest growing markets in Europe for foreign direct investment (FDI) projects are:

1 – Spain

Spain is the No. 1 fastest growing market for foreign direct investment (FDI) projects with a share of +15% of projects in 2024 compared to 2023.

2 – Poland

Poland is the 2nd fastest growing market for foreign direct investment (FDI) projects with a share of +13% of projects in 2024 compared to 2023.

3 – Italy

Italy is the 3rd fastest growing market for foreign direct investment (FDI) projects with a share of +5% of projects in 2024 compared to 2023.

2 – Here are the Top 10 European countries attracting the most foreign direct investment (FDI) by number of projects in 2024:

1 – France

France ranks No. 1 country in Europe attracting the most foreign investment in 2024, with a total of 1,025 foreign direct investment (FDI) projects, that represents a share of -14% of projects compared to 2023.

However, France attracted a lower share of foreign investment in 2024 compared to the previous year since the country suffered a protracted period of political uncertainty following legislative elections. This was compounded by high labor costs, impending exceptional corporation taxes for large businesses, and uncertainty about the continuation of tax credits all acted as deterrents to potential investors.

2 – United Kingdom

The UK ranks 2^nd country in Europe attracting the most foreign investment in 2024, with a total of 850 foreign direct investment (FDI) projects, that represents a share of -13% of projects compared to 2023.

The UK attracted a lower share of foreign investment in 2024 compared to the previous year since the country continues to struggle to raise low productivity levels and endures some of the highest energy prices in Europe.

3 – Germany

Germany ranks 3^rd country in Europe attracting the most foreign investment in 2024, with a total of 850 foreign direct investment (FDI) projects that represents a share of -17% of projects compared to 2023.

Germany attracted a lower share of foreign investment in 2024 compared to the previous year since the country suffers as a destination for FDI due to the loss of cheap Russian energy, declining exports to China and a weakened manufacturing sector.

4 – Spain

Spain ranks 4^th country in Europe attracting the most foreign investment in 2024, with a total of 351 foreign direct investment (FDI) projects.

Spain is however the No. 1 fastest growing market for foreign direct investment (FDI) projects with a share of +15% of projects compared to 2023.

By contrast to western European countries, foreign investment increased across many countries in Central, Eastern and Southern Europe.

Spain stands-out as the best performer for attracting foreign direct investment in 2024, with the number of announced projects surging 15% due to a combination of strong economic performance, relatively low energy and labor costs, and an abundant supply of land. Spain also benefited from a funding of EUR 163 billion from the NextGenerationEU (NGEU) scheme, the second-largest amount secured in the EU.

5 – Turkey

Turkey ranks 5^th country in Europe attracting the most foreign investment in 2024, with a total of 351 foreign direct investment (FDI) projects, that represents a share of -15% of projects compared to 2023.

6 – Poland

Poland ranks 6^th country in Europe attracting the most foreign investment in 2024, with a total of 259 foreign direct investment (FDI) projects.

Poland is however the 2nd fastest growing market for foreign direct investment (FDI) projects with a share of +13% of projects compared to 2023.

7 – Italy

Italy ranks 7^th country in Europe attracting the most foreign investment in 2024, with a total of 224 foreign direct investment (FDI) projects.

Italy is however the 3rd fastest growing market for foreign direct investment (FDI) projects with a share of +5% of projects compared to 2023.

8 – Belgium

Belgium ranks 8^th country in Europe attracting the most foreign investment in 2024, with a total of 210 foreign direct investment (FDI) projects, that represents a share of -2% of projects compared to 2023.

9 – Portugal

Portugal ranks 9^th country in Europe attracting the most foreign investment in 2024, with a total of 196 foreign direct investment (FDI) projects, that represents a share of -11% of projects compared to 2023.

In sectoral terms, software and IT services continue to lead in FDI, with 137 projects secured in 2024. Despite a decrease of 23 projects compared to 2023, Portugal still ranks 4th in the European ranking for the IT sector, with a share of 29.1% of all FDI projects in Portugal, compared to an average share of 14.6% in Europe.

10 – Netherlands

The Netherlands ranks 10^th country in Europe attracting the most foreign investment in 2024, with a total of 147 foreign direct investment (FDI) projects, that represents a share of -6% of projects compared to 2023.