This article for first time explores the relationship between immigration and poverty in Spain. Using recent Spanish household surveys, it is found, first, that both moderate and severe poverty are more acute among immigrants than among nationals and social transfers play no substantial role in reducing monetary deprivation in the case of foreign-born population; in the second place, we perform an econometric analysis that shows that the different poverty risk faced by local and immigrant households is not driven by differences in basic household and demographic characteristics.