Spain took the peninsula in 1497, and it has stayed Spanish ever since, which makes Melilla one of the oldest European settlements in Africa. For most of its history it was a fortress and a garrison, and the walled old town, Melilla la Vieja, still stands on the rock with its towers and a series of defensive lines. The Spanish army and the Legion remain an important presence, and the military makes up a good part of the economy.
The city grew in the early twentieth century, when the Spanish protectorate in northern Morocco and the mining of the Rif brought trade, and a local architect, Enrique Nieto, filled the new quarter with modernist buildings. That is why the centre looks like a small Barcelona by the African sea. Today the economy is public administration, the port, the garrison and trade with the Moroccan side of the border, and private business is thin.
That economy produces odd statistics. Unemployment is 21.7% (2025), one of the highest in Spain, while net household income is €47,850 a year (2024), because public-sector salaries are high and residents benefit from a large income-tax deduction. Prosperity comes out below average, and jobs come out average. The city also has a different tax system for consumption, with a local indirect tax in place of VAT.
The population is young: the median age is 33.4 years (2025), the lowest of any Spanish city of its size, and residents born abroad make up 24.6% (2025). The share of seniors is 12.7% (2025).
Housing is unusually cheap against income. A typical 70 m² flat rents for about €637 a month (2024), and buying costs €2,164 per square metre (Q2 2026). Housing comes out above average. Safety is middling: recorded crime is 50.7 per 1,000 people (2024), and safety comes out average.
Healthcare is the weak area. The hospital is run directly by the national health institute, not by a regional service, and the city comes out weak on healthcare. Life expectancy is 81.9 years (2023), below the national figure. People with a serious condition are often sent to the mainland, by ferry or plane.