Banco Sabadell has announced its decision to relocate its headquarters back to Catalonia, marking a symbolic return after seven years in Alicante.
The move signals a significant improvement in the region’s political and economic climate following the turmoil of 2017.
A reaction to political unrest in 2017
In October 2017, Catalonia experienced mass political unrest, culminating in an illegal independence referendum and a unilateral declaration of independence. This led to significant economic repercussions, with around 3,000 companies, including major banks like Sabadell and CaixaBank, relocating their headquarters to other regions in Spain. Banco Sabadell chose Alicante, leveraging its prior acquisition of CAM Bank, while CaixaBank moved to Valencia.
The political unrest stemmed from Catalonia’s push for independence, led by the regional government under Carles Puigdemont. The Spanish constitutional court declared the referendum illegal, but it proceeded despite warnings. The subsequent declaration of independence by the Catalan parliament led to the Spanish government invoking Article 155 of the constitution, effectively suspending Catalonia’s autonomy and imposing direct rule from Madrid. This unprecedented step deepened divisions within Catalonia and created widespread uncertainty for businesses and investors.
The exodus reflected widespread concern among businesses about the political instability in Catalonia. Shareholder confidence plummeted, with Sabadell losing 22% of its market value. Many companies feared the economic implications of staying in a politically uncertain environment.
Catalonia’s new phase of stability
In 2025, the situation in Catalonia appears markedly different. Under the leadership of Salvador Illa and the Socialist Party of Catalonia (PSC), the region has entered a phase of political stability and economic recovery. Sabadell’s decision to return underscores the progress made in restoring business confidence.
This move makes Banco Sabadell the first major company from Spain’s Ibex 35 stock index to return to Catalonia. It sends a clear message that the region is once again an attractive destination for businesses.
The economic and strategic implications
Although Sabadell’s decision is symbolic, it carries economic weight. The return comes at a time of significant challenges in Spain’s banking sector, including a hostile takeover bid from BBVA. If the acquisition proceeds, Sabadell’s headquarters could move again, possibly to Bilbao, BBVA’s home base. However, Sabadell has emphasised its commitment to maintaining its Catalan identity, which could serve as a strategic asset during these uncertain times.
Historical impact of the exodus
The economic damage from the 2017 independence crisis was substantial. Major companies like Naturgy, Cellnex, and Inmobiliaria Colonial also left Catalonia. Tourism, a critical sector for the region, saw growth fall from an annual 10% increase to just 2%. The political unrest created a challenging environment for businesses and investors.
Efforts to attract companies back to Catalonia have been ongoing since 2017, but progress was initially slow. Notable returns, such as Laboratorios Ordesa and Cementos Molins, began in 2022. Sabadell’s decision to return could inspire other companies to follow suit.
Why now?
Improved legal certainty and a stable political environment were key factors in Sabadell’s decision. The move also aligns with the bank’s strategic interests, as it seeks to strengthen its position amid BBVA’s takeover attempt. By re-establishing its headquarters in Catalonia, Sabadell hopes to solidify its regional identity and garner political and public support.
Reactions to the announcement
The Valencian government, where Sabadell’s headquarters has been located since 2017, expressed regret over the decision but acknowledged it as a business move. It emphasised that Sabadell would continue to contribute to the local economy. Meanwhile, CaixaBank confirmed that it has no plans to return to Catalonia, citing its commitment to Valencia as a permanent base.
A new chapter for Catalonia
Banco Sabadell’s return to Catalonia is a pivotal moment in the region’s recovery from the 2017 crisis. It reflects a restored confidence in Catalonia’s political and economic environment. While challenges remain, particularly the threat of further consolidation in the banking sector, Sabadell’s move could signal the start of a broader trend of businesses returning to the region.
The decision highlights the interplay between politics and economics in Catalonia, underscoring the region’s resilience and its efforts to rebuild its status as a business hub. Whether this will encourage other companies to follow remains to be seen, but it marks a hopeful turning point for Catalonia’s future.