Iberdrola Pays Record €10.41 Billion in Taxes in 2025
Iberdrola reached a historic milestone in its fiscal contribution, paying a total of €10.41 billion in taxes across the countries where the company operates. According to the company’s 2025 Fiscal Transparency Report, this represents the largest tax contribution in the group’s history, underscoring the scale of Iberdrola’s global operations and its commitment to responsible corporate governance.
The record payment reflects the energy group’s continued expansion across international markets, as well as its strong financial performance during the year. The report highlights how the company’s tax contributions play a critical role in supporting public finances and economic development in the regions where it operates.
Record Tax Payments in Spain
A significant portion of Iberdrola’s tax contribution in 2025 was made in Spain, where the company reached another historic record. Tax payments in Spain totaled nearly €4.7 billion, representing an 8% increase compared with 2024.
This figure further consolidates Spain’s position as the country receiving the largest share of Iberdrola’s tax contributions. Nearly half of the company’s global tax payments were made in Spain, highlighting the energy group’s continued importance to the Spanish economy.
The scale of these payments is particularly notable considering Iberdrola’s increasingly international footprint. While Spain receives nearly half of the company’s tax contributions, approximately two-thirds of Iberdrola’s business operations and almost 75% of its assets are located outside Spain. This illustrates the significant fiscal impact the company continues to have in its home market despite the geographic diversification of its operations.
Electricity-Specific Taxation in Spain
One of the primary reasons Spain receives such a large portion of Iberdrola’s tax payments lies in the country’s electricity-specific tax structure.
According to the Fiscal Transparency Report, Iberdrola is subject to 41 electricity-related taxes in Spain alone. By comparison, across the 31 other countries where the company operates, the group faces a combined total of 28 similar taxes.
As a result, Spain accounts for 79% of all electricity-related taxes paid by Iberdrola worldwide. This difference in tax frameworks highlights the particularly complex regulatory and fiscal environment faced by energy companies operating within Spain’s electricity sector.
The report notes that these taxes cover a wide range of charges associated with electricity generation, transmission, distribution, and energy system regulation. They form a substantial component of the company’s overall fiscal obligations.
A Significant Share of Profits Allocated to Taxes
Globally, Iberdrola dedicated a substantial share of its earnings to taxes in 2025. The company reported that 44% of its profit was allocated to paying taxes that directly affect its financial results.
This level of fiscal contribution illustrates the significant role taxation plays in the energy sector, particularly for large utilities with extensive infrastructure investments and regulated operations.
Over a longer timeframe, Iberdrola’s fiscal contribution has been equally substantial. Over the past five years, the company has paid more than €45 billion in taxes worldwide.
This cumulative figure is particularly striking when placed in historical context. According to the company, the €45 billion paid in taxes over the past five years is equivalent to the total dividends distributed to shareholders between 2001 and 2026. The comparison demonstrates the magnitude of the company’s financial contributions to public budgets around the world.
Taxation as Part of Iberdrola’s Social Dividend
Iberdrola views its tax payments as a central element of what it calls its “social dividend.” This concept refers to the broader value the company aims to generate for society beyond financial returns to shareholders.
Under this framework, taxation represents one of the most tangible ways the company contributes to public welfare, helping governments fund infrastructure, social programs, healthcare systems, education, and the energy transition.
The company emphasizes that its fiscal approach is grounded in a model of responsible taxation, built around three core principles:
- Strict compliance with tax regulations in every country where the company operates
- Transparency in reporting and disclosure of tax-related information
- Consistency between economic activity and taxes paid
By aligning these principles with its corporate strategy, Iberdrola seeks to ensure that its tax practices support both business sustainability and societal development.
Cooperative Relationships with Tax Authorities
Another key component of Iberdrola’s fiscal strategy is maintaining collaborative relationships with tax authorities in its operating markets.
The company actively participates in cooperative compliance programs, which aim to foster transparency, trust, and early dialogue between corporations and tax administrations.
These programs are currently in place in several countries where Iberdrola operates, including:
- Spain
- United Kingdom
- Brazil
- France
- Portugal
- Australia
Participation in these initiatives allows companies and tax authorities to work together proactively to resolve potential issues, improve compliance, and enhance mutual understanding of tax obligations.
Commitment to Fiscal Transparency
Transparency has become a cornerstone of Iberdrola’s corporate governance practices.
In 2019, the company voluntarily began publishing its Tax Transparency Report and Country-by-Country Report, providing detailed information about its tax contributions in each jurisdiction where it operates.
Importantly, this step was taken before such disclosures became mandatory under international regulations, demonstrating the company’s proactive approach to transparency.
The reports provide stakeholders—including governments, investors, and the public—with a clearer understanding of how the company’s tax payments align with its business activities across different regions.
Recognition for Responsible Tax Governance
Iberdrola’s approach to tax transparency and responsible fiscal management has earned recognition at the international level.
In 2025, the company renewed its **Fair Tax Foundation certification through the Fair Tax Mark. The renewal was accompanied by an improved score, reflecting continued progress in transparency and responsible tax practices.
The company also ranked first place in the Tax Responsibility and Transparency Index, an international benchmark that evaluates the tax governance practices of large multinational corporations. The index examines several key factors, including:
- The strength of corporate tax governance structures
- The level of transparency in reporting tax information
- The alignment between tax payments and economic activity
- The overall integrity of tax practices
These achievements reinforce Iberdrola’s reputation as a leader in responsible corporate taxation.
Certified Tax Compliance System
Another important milestone for the company is the certification of its tax compliance system.
Iberdrola’s fiscal governance framework has been certified under the UNE 19602 standard. This certification confirms that the company has established robust procedures for identifying, managing, and mitigating tax-related risks.
In 2025, the company renewed this certification for the seventh consecutive year, once again without any non-conformities identified during the review process.
Maintaining this certification demonstrates Iberdrola’s commitment to maintaining high standards of accountability and internal control in its tax operations.
Global Distribution of Tax Contributions
Iberdrola’s €10.41 billion tax contribution in 2025 was distributed across its major markets around the world.
The breakdown of tax payments by country reflects the geographic diversity of the company’s operations:
- €4.675 billion in Spain
- €2.328 billion in Brazil
- €1.384 billion in the United States
- €1.061 billion in the United Kingdom
- €645 million in Mexico
- €317 million across other countries where the company operates
This distribution highlights the importance of Iberdrola’s global presence and its significant economic contributions in multiple regions.
Supporting Public Finances and Energy Transition
As one of the world’s largest renewable energy companies, Iberdrola’s fiscal contributions play an important role in supporting the energy transition and broader economic development.
Tax revenues generated by large energy companies contribute to funding essential public services and infrastructure. In many countries, these resources are increasingly being directed toward investments in clean energy, grid modernization, and climate-related initiatives.
For Iberdrola, the record tax payments reported in 2025 reflect both the scale of its operations and its broader commitment to responsible corporate citizenship.
Through continued transparency, regulatory compliance, and collaboration with governments, the company aims to ensure that its financial contributions support sustainable growth in the communities where it operates.
Source Link: https://www.iberdrola.com/
