Gipuzkoa's Economy Shows Strong Growth in 2025 Amid Global Uncertainty
Gipuzkoa's 2025 revenues surged 10.8% to €6.075 billion, driven by tax growth and marked by record municipal funding despite global economic uncertainties.
- • Gipuzkoa's total revenue grew 10.8% to €6.075 billion in 2025, beating forecasts by €75 million.
- • Personal Income Tax (IRPF) and Value Added Tax (IVA) revenues saw significant rises of €287.5 million and €141.6 million respectively.
- • Corporate tax revenue fell due to refunds but showed a 15% rise when excluding these effects from 2023 to 2024.
- • Municipalities will receive a record €702 million from the Foral Fund for Municipal Financing (FOFIM) in 2025, surpassing previous budgets.
Key details
The economy of Gipuzkoa demonstrated robust performance in 2025, achieving total revenues of €6.075 billion, marking a 10.8% increase (€654.9 million) over the previous year and exceeding projections by €75 million. These results were presented by the Diputada General of Gipuzkoa alongside the Diputada Foral of Hacienda y Finanzas, highlighting positive economic indicators including sustained company activity and employment levels in the region.
Significant tax increases contributed to the growth, with the Personal Income Tax (IRPF) rising by €287.5 million and the Value Added Tax (IVA) increasing by €141.6 million. Income tax withholdings also saw a 6.1% rise, signaling ongoing economic dynamism. Meanwhile, corporate tax revenues declined due to unusual refunds related to prior years’ investment returns; excluding these refunds, corporate tax grew 15% from 2023 to 2024.
Gipuzkoa municipalities will benefit from a record allocation of €702 million from the Foral Fund for Municipal Financing (FOFIM) in 2025, exceeding the €700 million milestone and surpassing budgeted expectations by €29 million.
Despite the positive outcomes, officials advised caution, noting geopolitical uncertainties worldwide that could affect trade relationships. The revenue gains are expected to support ongoing policies aimed at enhancing business competitiveness and promoting promising industrial sectors in the region.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
