A large-scale operation in Granollers (Catalonia) has become one of the most high-profile events in recent years for all of Spain. Thanks to the actions of law enforcement, massive financial losses for the country’s budget were averted and a scheme threatening the region’s economic stability was uncovered. According to El Pais, the case involves an underground facility capable of producing millions of packs of cigarettes, directly impacting state revenues and the legal market.
During the investigation, Civil Guard officers discovered an illegal factory where 11 workers were found. They not only worked there but also lived directly on the premises, raising suspicions of possible exploitation. Investigators are now determining whether these individuals were victims of forced labor. According to police representatives, living and working conditions fell far short of the standards accepted at legal enterprises and raised serious concerns regarding human rights compliance.
Operation details
A total of 10 tons of counterfeit tobacco were seized. Experts estimate that if all this product had reached the market, the loss to the treasury would have been about 30 million euros. For comparison, this amount is equivalent to funding several large social facilities, such as schools or medical centers. As El Pais notes, operations of this scale and consequence for the country’s economy are extremely rare.
During the two phases of the operation, 20 people were detained, four of whom were jailed by court order. The others remain under investigation. Interestingly, raw materials for production came from Bulgaria and Romania, although so far no arrests have been made outside Spain. The investigation also found that the final destination for the counterfeit cigarettes was outside Spain—some shipments had already crossed the French border, confirming the scheme’s international scale.
How the factory operated
The production process was organized to industry standards: tobacco leaf was stored in Piera, then sent to the factory in Granollers, where it was processed into finished cigarettes. The equipment could produce up to 900,000 cigarettes a day. Outwardly, the facility looked no different from a legal enterprise, but working conditions were extremely harsh—workers could not freely leave the premises and slept right in the workshops.
Most of the seized products imitated well-known brands, particularly Philips Morris. Representatives of the company assisted with expert evaluation during the investigation. According to the police, such underground operations not only damage the state budget, but also erode trust in the legal market and create additional risks for consumers.
Economic and social impact
Authorities emphasize that the fight against tobacco smuggling is just as important as combating drug trafficking or human trafficking. According to RUSSPAIN.COM, losses to the budget from the illegal tobacco trade may be comparable to expenditures on major government programs. Three quarters of the price of a legal pack of cigarettes are taxes, and every shipment of counterfeit products is a direct blow to funding for healthcare, education, and other sectors.
Recalling the government’s recent actions to stabilize the economy, it is clear that fighting the shadow sector is becoming increasingly relevant. For example, authorities have recently allocated significant funds to support citizens and businesses, as detailed in the report on new anti-crisis initiatives (details on the emergency measures package).
Context and similar cases
In recent years, Spain has faced an increase in illegal tobacco production, particularly in regions with developed logistics and proximity to international borders. In 2025, authorities in Andalucía also uncovered a large network of underground workshops, seizing tons of raw materials and finished products. At the time, the damage to the budget was estimated at tens of millions of euros. Such incidents highlight the ongoing need for control and improved strategies against the shadow market, to minimize state losses and protect legal businesses.
