Far from being a gamble, Madrid has become a strategic hub in the evolving relationship between Germany and Spain.
Germany is one of Spain’s top trading partners, with more than €30 billion in annual bilateral trade. A significant portion of these flows are concentrated in the Madrid region, which hosts several hundred German companies, including some of the most influential names in the Mittelstand. Notably, Siemens, Bosch, DHL, Mercedes-Benz, Bayer, and SAP have established Iberian headquarters, logistics centers, or regional management functions in Madrid to oversee Southern European operations.
The German Chamber of Commerce for Spain (AHK Spain), highly active in Madrid, fosters a vibrant professional network, reinforced by regular bilateral business events. Institutional ties have also strengthened with several German Länder through joint economic missions and cooperation agreements.
Three Concrete Forms of German Presence in Madrid
- A Diverse Industrial and Logistics Footprint
Thanks to its infrastructure network – including Madrid-Barajas Airport, freight rail platforms like Coslada, and highway access to Portugal and Andalusia – the region attracts many German players in sectors such as mechanics, chemicals, logistics, and electronics. The Henares Logistics Corridor, east of Madrid, alone hosts several dozen foreign-capital establishments. - Strategic and Innovation-Oriented Functions
Madrid is home to R&D centers (e.g., Siemens Gamesa), digital hubs, Iberian headquarters for companies like Lufthansa, Henkel, and Allianz, and regional platforms for managing business across Spain, Portugal, and sometimes Latin America. - A Structured and Integrated German Community
The region offers multiple German-speaking educational institutions, such as the Deutsche Schule Madrid, a dynamic network of professional and business associations like AHK Spain, and tailored support for relocating executives and their families.
Madrid: A Complete Framework for Long-Term Expansion
The Madrid region combines high quality of life, global accessibility, competitive taxation, and administrative stability. Its business ecosystem actively welcomes foreign companies with relocation support, networking opportunities, and a growth-oriented environment.
For German firms seeking to expand, the Madrid region stands out for the strength of its economic ties, the maturity of its business ecosystem, and its ability to support effective, long-term growth both in Spain and beyond. It is a base of operations – and a launchpad – at both the European and global scale.
Madrid is more than ever a key node between Germany and Spain.