With its strategic location, competitive tax framework, and high-quality infrastructure, Madrid is an ideal choice for German companies looking to expand or accelerate their international development. Certain industries, in particular, are receiving increased attention from public authorities, offering significant business opportunities: aerospace and defense, mobility and logistics, data centers, artificial intelligence, biotechnology, microelectronics, and creative industries.
Aerospace & Defense: Madrid Takes Innovation to New Heights
Madrid dominates the Spanish aerospace sector, generating 62% of the national aeronautics turnover and 95% of the aerospace revenue. The presence of leading industry players, combined with cutting-edge research centers like INTA and the European Space Agency’s Business Incubation Center (ESA-BIC), positions Madrid as a key driver of innovation in Europe.
Automotive, Mobility & Logistics: Driving the Future Forward
As the second-largest car manufacturer in the European Union, Spain is a major player in the automotive industry. Madrid plays a vital role in this landscape, particularly in the transition to electric mobility and supply chain optimization. New logistics infrastructure and a strong commitment to sustainable transport solutions make Madrid a prime location for German companies in the sector.
Data Centers: A Thriving Digital Infrastructure
With 164 MW of installed capacity – set to reach 792 MW in the coming years – Madrid is rapidly becoming Southern Europe’s key data center hub. Global tech giants like AWS, Microsoft, and Google have made significant investments, reinforcing the region’s appeal to cloud computing and data management companies.
Digitalization & AI: A Flourishing Innovation Ecosystem
Madrid is at the forefront of digitalization and artificial intelligence, representing 31% of Spain’s digital economy. With €5.13 billion invested in R&D, a workforce of 64,470 research professionals, and the presence of industry leaders like Microsoft, Google, and IBM, the region attracts both startups and major corporations. Its specialized clusters, nearly 100% 5G and fiber-optic coverage, and booming data center industry create an ideal environment for technological innovation and digital investment.
Biotechnology: A Center for Scientific Excellence
Madrid accounts for 45% of Spain’s pharmaceutical and biotech sector revenue. With world-class research facilities like the Carlos III Health Institute and the Madrid Science Park, the region offers international companies an optimal environment to develop and scale their life sciences projects.
Microelectronics & Semiconductors: Powering the Future
With Europe focused on industrial sovereignty, Madrid is actively developing a semiconductor and microelectronics hub. Supported by both public and private investments, the region is positioning itself as a major player in addressing the challenges of digital transition.
Creative Industries: A Booming Sector
Madrid has become a magnet for video game developers, film studios, and animation companies. Major industry players like Electronic Arts and Ubisoft have established operations in the city, drawn by its creative ecosystem, favorable tax incentives for audiovisual production, and strong connections between businesses, universities, and research institutions.
Tailored Support for Entrepreneurs
Madrid doesn’t just offer an attractive business environment—it also provides comprehensive support for international investors. The Invest in Madrid agency offers tailored assistance to entrepreneurs, granting them privileged access to infrastructure, financing options, and innovation networks. From setup to scaling, businesses benefit from a dedicated, step-by-step support system.
A Strategic Choice for Investors
Germany is among the top six foreign investors in Spain, with many German companies choosing Madrid as their primary foothold in the country. Whether for establishing a regional headquarters, R&D center, or logistics base, the region provides high-quality real estate and land development opportunities to meet industry needs. With its dynamic economy, pro-business policies, and thriving key industries, Madrid is an essential destination for companies looking to expand in Europe. For German businesses seeking new growth opportunities, the Spanish capital is an unmissable investment destination.