Iberdrola Increases Contribution to Public Coffers by 8%, Reaching €10.3B in 2024
Iberdrola has firmly established itself as one of the leading corporate contributors to taxation across the countries where it operates. In what has been a record year for investments, with a total of €17 billion directed towards growth due to increased demand in all markets, the company’s tax contribution has reached historic levels. For 2024, Iberdrola’s tax payments have increased by 8%, exceeding €10.3 billion, a testament to its strong financial performance and positive impact on global economies.
This impressive tax contribution is not only significant in scale but also highlights Iberdrola’s role in supporting public finances worldwide. The €10.3 billion represents more than double the company’s net profit and equates to a daily contribution of over €28 million in taxes, or approximately €1.2 million every hour. This underscores the scale of Iberdrola’s operations and its commitment to social responsibility, benefiting the communities and economies where it operates.
The company’s contribution goes beyond taxes, as it is also deeply involved in the electrification of economies, which is a driving force for growth and job creation. Iberdrola’s activities are central to advancing the energy transition, which not only supports sustainable development but also stimulates employment and economic dynamism. Over the past six years, the company’s total tax contribution to public coffers in more than 25 countries has exceeded €50 billion, reinforcing its pivotal role in supporting public sector funding.
Global Tax Contributions and Regional Breakdown
Iberdrola operates in over 25 countries worldwide, subjecting itself to a diverse range of taxes. In total, the group faces over 70 electricity-specific taxes globally, with the majority of these taxes being in Spain. In fact, Spain is the country where Iberdrola faces the highest tax burden, with 40 electricity taxes, 26 of which are regional. This is a significant portion of the company’s total tax contribution, reflecting the complexity of the tax landscape in its home country.
Excluding corporate income tax, taxes and charges impacting the company’s income statement account for a striking 111% of net operating expenses. This percentage is notably higher than the global average, where similar figures for other companies tend to be around 49%. This disparity highlights the considerable weight that taxes impose on Iberdrola’s operations, particularly in Spain.
When broken down by country, Iberdrola’s largest contributions come from Spain (€4.313 billion), followed by Brazil (€2.428 billion), the United States (€1.292 billion), the United Kingdom (€1.260 billion), and Mexico (€442 million). The remaining countries where Iberdrola operates contributed €565 million in taxes, further underscoring the global scale of the company’s impact.
Iberdrola as an Engine of Wealth Creation
Iberdrola’s commitment to taxation is matched by its broader role in creating wealth and driving economic prosperity in the regions where it operates. The taxes paid by the company play a critical role in the local and national economies, generating substantial wealth and job creation. As a key player in the global energy sector, Iberdrola has a direct and positive impact on the economy through its operations and investments.
In addition to its tax contributions, Iberdrola’s activities contribute over €52 billion to global GDP, representing a 14% increase from the previous year. Of this total, nearly €17.5 billion comes from Spain alone, reflecting the company’s significant role in the country’s economy. Iberdrola’s impact extends beyond just the direct contributions; it generates nearly 500,000 jobs worldwide, both directly and indirectly, through its workforce of 42,200 people. These jobs span across various sectors, from energy production to research and development, contributing to the stability and growth of local economies.
By supporting the global transition to renewable energy, Iberdrola also plays an essential role in promoting long-term sustainability. The company’s investments in clean energy technologies, including wind, solar, and hydroelectric power, are driving the transformation of the global energy sector, fostering environmental sustainability, and creating new opportunities for economic growth. This aligns with Iberdrola’s vision of leading the energy transition while simultaneously contributing to economic prosperity and social well-being.
