The country’s digital economy is growing faster than almost anywhere else in Europe, and that changes the rules for every small business operating here.
Anyone who’s started a business in Spain, or has even just thought about it, will no doubt have been given one clear piece of advice: it’s who you know that counts. For decades, possibly even centuries, doing business in Spain has been a question of finding the right contact, getting a warm introduction, and building trust – usually over a very long lunch
And whilst that still holds true in a lot of cases, the times they are a-changing.
Because as well as being one of the best countries at knowing someone who knows someone, Spain is also one of the fastest-growing digital economies in Europe. And if you want to build your business in this modern mediterranean powerhouse, you need to learn to ride the digital wave.
Let’s look at the numbers.
According to 2025 figures from the Spanish government’s Invest in Spain agency, Spain’s digital economy now accounts for 26% of national GDP – around €414 billion – and grew by 17% year on year.
The country has nearly 100% broadband coverage at speeds above 100Mbps, putting it 20 points above the EU average. There are over 38,000 Information & Communication Technology (ICT) companies operating here. And perhaps most strikingly, in 2025 Spain jumped from 10th to 2nd place globally for receiving new ICT and internet infrastructure investment projects.
Think about that. Second in the world. Not second in Europe, second globally. That’s the kind of leap that signals something structural, not just a good year.
Big tech companies sense the opportunity. Amazon recently confirmed an €18 billion investment in data centres in Spain, adding to the €15.7 billion it had already announced in 2024. Over the last 5 years, Microsoft has committed to investing over €10 billion in cloud computer, data centres and AI infrastructure. Google also has a significant foot in the door.
Now, there’s a tendency to read stories about billion-euro investments and move on. After all, what does that sort of infrastructure have to do with a restaurant in Malaga or a freelance consultancy in Barcelona?
Well, a lot actually. Because the digital transformation happening at the top of Spain’s economy filters down. Better infrastructure means faster, more reliable connectivity for everyone. More connectivity means more and more business activities are taking place online. And that includes how customers interact with businesses.
In a country where smartphone penetration is among the highest in Europe, online consumer behaviour has shifted dramatically since the pandemic. And whilst some people still ask their friend if they know a good plumber, more and more are asking Google – and increasingly AI – instead.
For small businesses that represents a genuine window of opportunity. Spain is already seeing Europe’s second fastest growth in tech startups, but taking advantage of the digital economy applies just as much to bricks-and-mortar businesses as it does to AI entrepreneurs. Because even if your business relies on people coming through the door and a good old-fashioned handshake, the internet is becoming the primary place to let them know you’re there. Which means, these days, all businesses need to be seen online.
For many, that may sound like a daunting prospect (or something you leave in the hands of your web developer). But it doesn’t have to be either. Over the coming months, I’ll be using this column to take a look at what’s going on in the digital world and show how it impacts small and medium-sized businesses in Spain – particularly the international and expat-run businesses. And I’ll be offering help and advice on how to adapt to, and benefit from, the tech evolution.
So, charge up your mobiles, dust off your search engines and together we’ll grab this digital bull by the horns.
Ben Giddings is an SEO and digital communications consultant based in Madrid. With over 20 years of digital communications experience – including senior roles managing digital strategy across the UK Foreign Office’s global network – he now helps English-speaking businesses in Spain and the UK to improve their online visibility and use websites as a tool for business growth. Find out more at bengiddings.com.
Meta title: Spain is a digital powerhouse – is your business keeping up? | Spain in English
Meta description: Spain’s digital economy now accounts for 26% of GDP and is growing fast. Here’s what that means for small and expat-run businesses operating here.
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