Industry and technology are driving the trend, amid broader European supply chain realignment.
According to the ICEX Barometer (November 2025), 54% of German investment flows into Spain this year have been directed toward industrial activities, with the Madrid region capturing the largest share of these projects. The trend is not limited to new entrants. Data published by the German-Spanish Chamber of Commerce (December 2025) shows that 40% of German companies already established in Spain plan to expand their operations in 2026, with Madrid emerging as a preferred location.
A consolidating industrial and logistics hub
Madrid continues to outperform the national average in economic growth and remains at the center of Iberian logistics networks. The €25 billion Madrid Nuevo Norte development is expected to further strengthen the region’s business and technology ecosystem over the coming years. The region plays a central role in Spain’s logistics activity and benefits from strategic infrastructure. Adolfo Suárez Madrid-Barajas Airport serves as a key European hub, particularly for connections with Latin America, while Spain’s high-speed rail network reinforces Madrid’s national connectivity. For German industrial groups seeking to diversify operations within Southern Europe, this operational centrality represents a clear advantage.
Competitive tax environment and talent availability
Spain’s 25% corporate income tax rate, combined with a competitive regional fiscal framework, remains a relevant factor for international investors. Madrid concentrates 43% of Spain’s technology professionals and maintains a steadily declining unemployment rate (10.6%), supporting recruitment in engineering, industrial and digital sectors. Access to qualified talent continues to play a decisive role in investment decisions as European value chains evolve.
Concrete corporate expansions
Several German companies illustrate this momentum. Siemens is expanding its automation center in Madrid’s Orense business district. IT group Bechtle is strengthening its operations along Vía de los Poblados. Freudenberg and Voith are developing production units in Villaviciosa de Odón, benefiting from serviced industrial land and regional support schemes. Invest in Madrid reports sustained growth in German foreign direct investment throughout 2025, reflecting continued investor confidence in the region’s industrial and technological competitiveness.
A strategic southern European platform
German companies already account for more than 61,000 jobs in Spain, with a significant concentration in the Madrid region. Despite challenges linked to infrastructure pressure and urban growth, Madrid continues to consolidate its position as a stable and competitive Southern European base for German groups. As European industries adjust to geopolitical uncertainty and supply chain restructuring, Madrid is increasingly viewed as a strategic platform for long-term expansion.