Investors started piling into Spain about a year ago, hoping to make money as rock-bottom valuations and the nascent signs of an economic recovery promised bumper returns. But 12 months on and they have been served several timely reminders that where there are returns, there is risk.

The country pulled out of a two-year recession late last year, and in February saw its first listing of size since July 2011, when real estate company Lar Espana Real Estate raised $547 million.