Madrid economy reaches historic 20% share of Spain's GDP

The Community of Madrid has reached a historic economic milestone, contributing 20% of Spain's total GDP for the first time. According to data from the National Statistics Institute (INE), the region's GDP reached 337,216 million euros, following a 2.7% growth rate in 2025. This performance exceeds the national average and widens the gap with Catalonia, which accounts for 18.9% of the national GDP.

Madrid's economic leadership is supported by high levels of foreign investment—hosting 43.5% of all foreign-capital companies in Spain—and a per capita income of 47,220 euros, which is 38% higher than the national average. Regional officials attribute this success to policies focused on economic freedom, legal certainty, and competitive taxation.

To further bolster the local economy, the regional government has announced significant support for the self-employed. For 2026, resources for the self-employed will increase by 18% to 37 million euros. Key initiatives include the ‘Tarifa Cero’ program, which covers 100% of Social Security contributions for new entrepreneurs during their first year, and new measures for active retirement. Additionally, upcoming plans for 2027 include monthly subsidies of up to 1,250 euros for self-employed workers requiring replacements due to maternity, paternity, or long-term illness.