UK and Spain Deepen Economic Ties with New Visa Waiver and Trade Dialogue

Madrid, Spain – The United Kingdom and Spain are strengthening their economic relationship with a new short-stay work visa waiver and increased collaboration on trade and investment, as announced during a visit by UK Chancellor Rachel Reeves to Madrid on March 18, 2026.

First UK-Spain Trade and Investment Dialogue

Chancellor Reeves co-chaired the inaugural UK-Spain Trade and Investment Dialogue with Spanish Minister of Economy, Trade & Enterprise Carlos Cuerpo Caballero. The dialogue, established under a strategic bilateral framework signed September 3, 2025, aims to bolster the economic ties between the two nations and promote sustainable growth [HM Treasury].

Growing Trade and Investment

Both countries have seen consistent growth in bilateral trade, with a 9.4% increase in the four quarters leading up to the end of Q3 2025. Foreign direct investment between the UK and Spain is as well expanding [HM Treasury]. This reflects a long-term commitment from the private sector to investment, supply chain integration, and collaborative research and development.

New Visa Waiver and Professional Recognition

A key outcome of the discussions is an agreement for a new short-stay work visa waiver, designed to ease the movement of services professionals between the UK and Spain [Spain English]. The two nations also plan to work towards closer recognition of professional qualifications.

Commitment to Regulatory Alignment

Chancellor Reeves has signaled the UK government’s willingness to explore regulatory alignment with the European Union, stating that alignment should be the rule unless there is a specific reason to diverge [La Moncloa]. This approach aims to reduce burdens on businesses and foster economic growth.

Shared Values and European Collaboration

Reeves emphasized the importance of the relationship with Spain, noting the shared values between the two countries and the potential for collaboration within Europe, particularly in the context of global challenges such as those in the Middle East, the United States, and Russian aggression [La Moncloa].

Devolution and Regional Growth

The Chancellor also highlighted the UK government’s commitment to devolving powers to regional areas, aiming to address economic imbalances and promote growth beyond London and the South East [La Moncloa].

Further discussions are planned for June and October to develop a roadmap for continued collaboration.