Madrid attracted more foreign direct investment than any other Spanish city in the first half of 2025, according to data compiled by the national investment promotion agency. The capital received 8.7 billion euros in FDI between January and June, a 22% increase on the same period last year and enough to place it ahead of Barcelona for the first time since 2019.
The shift reflects several factors. Madrid's lower corporate tax environment — the Community of Madrid has consistently maintained lower regional tax rates than Catalonia — has been cited by several multinational companies as a factor in their location decisions. The city's growing technology sector, anchored by a cluster of fintech and artificial intelligence companies in the Cuatro Torres business district, has also attracted significant venture capital.
What the Numbers Mean
The FDI figures cover a range of investment types, from greenfield projects to mergers and acquisitions. The largest single transaction in the period was the acquisition of a Spanish logistics company by a US private equity fund, which alone accounted for 1.2 billion euros. Excluding that transaction, Madrid's FDI growth was a more modest 11%.
Barcelona's investment community has pushed back on the narrative, arguing that the city's strength in design, biotech, and mobile technology makes direct comparisons misleading. "We are competing for different types of investment," said one senior figure at the Barcelona Chamber of Commerce.