In Iberian Railways, you start with nothing but hope and a willingness to take on debt in order to construct railways that connect towns and cities across the Iberian peninsula.

The game board depicts Spain and Portugal, with towns, "minor" cities, "major" cities, Lisbon, and Madrid (collectively called "urban hexes") being color-coded on a hex-based map. The board includes four action spaces — start, expand, merge, purchase — with all players starting on expand. On a turn, you must move your action marker to a new action, then either take that action or pass.