Pharma in Spain: why global investors and innovators are moving in By Dylan Kissane 7 minutesmins June 9, 2026 7 minutesmins Share WhatsApp Twitter Linkedin Email Photo credits: Omar Lopez-Rincon (Unsplash) Newsletter Signup - Under Article / In Page"*" indicates required fieldsPhoneThis field is for validation purposes and should be left unchanged.Subscribe to our newsletter to get the latest biotech news!By clicking this I agree to receive Labiotech's newsletter and understand that my personal data will be processed according to the Privacy Policy.*Company name*Job title*Business email* A shift in the European pharma sector’s center of gravity might be underway as Spain continues to build on its reputation for innovative biotechnology and life science.Now ranked third in scientific production in the European Union and 9th globally, Spain is attracting life science entrepreneurs, established pharma companies, and the investors whose capital helps elevate them to the next level. Spain’s strong higher education sector, modern healthcare system, leadership in European clinical trials, and a variety of strategic government incentives combine to make the country increasingly attractive to pharma professionals.Table of contentsBuilding the future of pharma on powerful foundationsInnovation in biotechnology and in the pharma industry does not happen in a vacuum. It is built on three pillars: advanced scientific output, integrated healthcare system, and a highly qualified talent.Spain delivers on the first with output that eclipses all but two other EU member states, with particular strengths in biochemistry and genetics attracting global attention. More than 3% of all global scientific output emerges from Spain, with the country eclipsing larger economies and traditional powers.When it comes to translational healthcare, the Spanish system has the scale and structure that pharma companies appreciate. There are 848 public hospitals and private clinics that maintain deep collaboration with research institutes and universities. Patients in the Spanish system are open to participating in clinical trials and lead the world in organ donations and transplants – indeed, nearly 1 in 5 of all European donations are Spanish, and the country that is just 0.6% of the global population represents more than 6% of the world’s organ donations. Spain’s academic research centers and universities represent an established research infrastructure for pharma to leverage. The Spanish National Research Council (CSIC) support hundreds of research centers and units, including the National Oncology Research Center (CNIO), the National Cardiovascular Research Center (CNIC) and the Severo Ochoa Molecular Biology Center (CBM). Little surprise that these world-renowned centers attract attention, and more than 70% of industry research alliances include public centers of reference.Global companies are investing heavily in Spanish pharmaProof positive that Spain’s pharma sector is proving attractive to international industry players can be found in the raw numbers around clinical trials and pharmaceutical research and development (R&D). Spain leads Europe in the number of clinical trials approved annually, with more than 1000 trials authorized by the Spanish Medicine and Healthcare Products Agency (AEMPS) in areas including cell and gene therapies and oncology. Global pharma companies appreciate both the ease of patient recruitment from a large and dense population, the collaboration with and support from public hospital system, as well as the country’s wide genetic variation, and so it is no surprise that Spain collaborates in nearly 20% of all international clinical trials – the most for any country in the EU.Global pharmaceutical manufacturers are an important part of the life science ecosystem in Spain, too. Whether producing active ingredients, biologics, or medicines for humans and animals, the 181 manufacturing plants welcome more that €1 billion ($1.16 billion) in annual investment and generate €23 billion ($30.3 billion) in annual revenue. Spain’s ease of access to the European market makes it an attractive base for pharma manufacturers and 76% of all production is exported to regional and global customers.Multinational pharma companies have invested in the Spanish economy to the tune of billions of euros in recent years. Examples abound of industry leaders that have established operations in the country, including Merck’s global growth-hormone production site in Tres Cantos, Eli Lilly & Company’s medicinal chemistry plant in Madrid, and Bayer’s worldwide aspirin production site in La Felguera. With AstraZeneca, Roche, GSK, Takeda and Bristol Meyers Squibb among more than a dozen other top industry actors investing in Spain, it seems clear that the largest international pharma companies have grasped the opportunities that the country has to offer. With more than €1.5 billion ($1.75 billion) invested annually in R&D in Spain – representing 20% of all private R&D funding – the pharmaceutical industry is leading the scientific charge.Government incentives fuel Spain’s pharma innovationSpain’s success in attracting pharmaceutical industry investment is no accident. Instead, it is the result of strategic planning and a response to governmental incentives that encourage firms to conduct research, develop therapies, trial medicines, and manufacture drugs in the country.Consider the tax incentives available to life science companies investing in innovation in Spain. The government allows a 42% tax deduction for investment in R&D (Investigación y Desarrollo, or I+D) and a 12% tax deduction for investments in technological innovation (Innovación Tecnológica, or IT). What’s more, companies can deduct up to 40% of the mandatory social security contributions for R&D workers, making the production of new research even more economically interesting.On top of these tax incentives, Spain’s State Plan for Scientific and Technical Research (PEICTI) outlines a variety of ways in which the national government will help the life science sector to advance. Included in PEICTI 2024-2027 are loans and grants that would cover investments in R&D materials, collaboration and personnel, special funding for hiring Ph.D.’s and specialized technicians, investing in intellectual property (IP), and aid for establishing new infrastructure in Spain’s many science and technology parks.Dynamic biotechnology sector powering pharma innovationSpain’s biotechnology ecosystem is rich and growing. More than 4,400 companies operate across the sector today, with more than 1000 of those specialized in biotech and biopharma. Employing nearly 40,000 people and representing more than 1.1% of Spain’s gross domestic product (GDP), Spanish biotech is an important pillar in the national economy. Biotech companies combined to turnover more than €13 billion ($15.1 billion) in 2023, an increase of 9.4% on the previous year, on the back of an investment of €1.2 billion ($1.4 billion) in R&D, up 5% year-on-year. Spain’s decentralized economy means that there are active regional biotech clusters across the country, most notably in Catalonia, Madrid, and Andalusia, and there is a certain culture of creating spinouts from public research institutions.The dynamism of the biotechnology sector attracts interest from foreign firms keen to leverage the benefits Spain offers. As Carlos Murillo, President of Pfizer Spain, told ICEX, “Spain provides us with a robust research ecosystem, highly skilled professionals and cutting-edge technology, these being fundamental pillars that drive innovation and support our daily work.”Investors, too, find Spanish biopharma attractive with €181 million ($210 million) in new funding flowing into biotechs in 2024. Proof of the international appeal of Spain’s local biotechnology industry, more than a third of that funding was from outside of the country, including from venture firms in Canada, Chile, the Netherlands, Japan, Denmark and the United States. Financing from regional players like the European Investment Bank and even crowdfunding – worth €6.3 million ($7.3 million) in 2024 – also contributed to a 26% increase in the number of funding deals closed that year.Beyond therapeutics, the Spanish medtech sector is also showing strong signs of growth. More than 1000 companies generate revenues of more than €11.6 billion ($13.5 billion) and employ more than 35,000 people. Medtech exports are growing at 7% annually with both European and North American markets welcoming Spanish health technology products, and Asia becoming an increasingly important destination for the country’s medtech devices. Market leaders including 3M, Philips, Braun and Abbott all manufacture medical technologies in Spain, with important activity in the regions of Catalonia, Madrid, Valencia, and the Basque Country.No slow down expected for pharma investment and innovation in SpainSolid foundations, government incentives, buy-in from industry leaders, and a dynamic local biotech sector combine to make Spain one of the most attractive places to invest and innovate in 2026. With annualized revenues continuing to grow and advantages for venture capital, entrepreneurs, and market leaders maintained, the future looks bright for one of Europe’s leading lights in life science.Spain combines research capabilities, industrial scale and international connectivity, offering a strategic platform for biotech and pharma growth across Europe and beyond.Life Sciences in Spain. Explore other topics: Clinical trialEuropeinvestmentSpain