A police statement issued Wednesday said the group's alleged European leader, German citizen Frank Hanebuth, was among those detained in 31 house raids.
Police said the 25 were wanted for suspected drug trafficking, trafficking in human beings, extortion, money laundering and corruption.
The statement said Hanebuth owned an estate on Mallorca valued at $3.3 million where the gang had planned to build a Formula One race track.
Police said several cars and motorcycles, as well as arms, cash and jewelry were seized in the operation Tuesday.
Authorities in Germany, Luxembourg, the Netherlands and Austria helped in the two-year investigation.
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