Spain is more than the cultural capital of Europe
Spain is the world’s 14th-largest economy and the 5th-largest economy in the EU: GDP worth 1.4 trillion USD.
Spain is the 11th-largest exporter of commercial services worldwide and the 16th ranked exporter of merchandise trade.
Multinationals in Spain account for 44% of total exports from Spain to third Markets. Total exports from Spain amounted 277 Billion € in 2017.
International Export Services from Spain - excluding Tourism- to third markets reached more than 60 Billion € in 2017. More than 120 Billion € including Tourism. According to WTO Spain ranks 11th Worldwide.
Spain received 82 million international tourists in 2017. Spain is the 2rd country worldwide in number of international tourist arrivals and 2nd in revenues after USA (1st in Europe).
Spanish companies are among leading companies in the world:
▪ 3 out of every 5 flights worldwide are controlled using Spanish Air Navigation Management systems-ATM.
▪ Telefonica is one of the largest telecommunications companies in the world (in terms of market capitalization and number of customers).
▪ Santander is the 2nd bank in the Eurozone and one of the first in the world (stock market capitalization) and BBVA now operates in 40 countries.
▪ Mapfre is the largest multinational insurer in Latin America and among the top 10 European insurance companies by premium volume
▪ Iberdrola is the 4th-largest utility company in the world (in terms of market capitalization) and the 2nd largest wind power operator in USA.
▪ The Spanish infrastructure sector is a world leader in foreign markets. ACS Group is the leading international contractor in the world, according to the ranking published in 2018 by the specialized publication Engineering News Record (ENR).
➢The Al Shoula Group, a Spanish-Saudi consortium, is to run the high-speed train between La Mecca – Medina.
➢The Panama Canal expansion project has been developed by a Spanish-led consortium. ➢6 out of 10 Worldwide Concessionaires of transportation infrastructures are Spanish Companies.
Foreign Investment in Spain
Spain is the 9th-most open country to Foreign Investment according to OECD’s FDI Restrictiveness Index.
Over 12,500 foreign companies in Spain across all economic sectors. 70 of the FORBES Top 100 companies have branches and 90 out of 100 top R&D Companies has a subsidiary according to Thomson Reuters. Foreign Companies in Spain account for more than 49% of the total industrial turnover yearly and 33% of the industrial employment.
US, UK, French, Italian and German Companies are the largest investors in Spain.
Domestic market of over 46 million consumers: Spain has a GDP per capita (PPP) above the EU-28 average.
Spain grants free access to the world´s largest market, the European Union: more than 500 million consumers. Advantages of operating in the EU:
▪ Intra-European duty-free market.
▪ Free movement of goods and services, capital and persons.
▪ Single currency: EUR
Spain and Latin America
The best European platform for doing business with Latin America:
▪ 17 Agreements to Avoid Double Taxation in Central and South America: Argentina, Bolivia, Brazil, Barbados, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, El Salvador, Ecuador, Mexico, Panama, Jamaica, Trinidad & Tobago, Uruguay and Venezuela.
▪ 19 Agreements for Reciprocal Protection and Promotion of Investments Argentina, Colombia, Costa Rica, Cuba, Chile, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Dominican Republic, Trinidad & Tobago, Uruguay and Venezuela.
▪ Excellent communications and infrastructure: Madrid concentrates around 35% of total air traffic between Europe & Latin America.
Why is Spain a perfect hub for doing business in Latin America?
1. Common historical, cultural and linguistic roots. Institutional network relationships.
2. Strong economic and business ties: Spanish companies have invested in strategic sectors in Latin America (banking, utilities, communications and transport, building industry, airport management, etc.)
3. Good communications: Spain is a major connecting hub for airlines traveling between America, Europe and Middle East.
4. Multinational companies are increasingly choosing Spain for their Latin American headquarters.
5. Spain has become the European HQ for Latin American multinational companies.
6. In the USA there are more than 50 million people working in Spanish.
Spanish Companies are very active investors in USA, EU and the world´s 2nd-largest investors in Latin America. Many Spanish companies have a strategic position in key sectors in Latin America (ICT, energy, finance, infrastructures, etc.)
Spain and Africa /Mediterranean
Spain is also a suitable platform within the European market for doing business with North-African, Mediterranean, and Middle East countries:
❑ 19 BilateralAgreements to Avoid Double Taxation
❑ 15 BilateralAgreements for Reciprocal Protection And Promotion of Investments
Euro-Mediterranean Association Agreements with Egypt, Israel, Jordan, Lebanon, Morocco, Tunisia and Algeria for the gradual liberalization of trade in the Mediterranean area.
Key Role of the Spanish Canary Islands Special Zone (ZEC) as a commercial and logistic hub with Africa
▪ Geoestrategic location: On the Southernmost border of the European Union (EU) ▪ Strong historical and commercial ties with Africa and America ▪ Tax benefits for ZEC entities ▪ Authorized by the European Commission in January 2000
✓ Europe’s most beneficial tax regime (4% corporate tax rate).
✓ Excellent communications and services infrastructure.
✓ Interesting tri-continental logistic platform to Africa, Latin America and Europe
International flights from Spanish airports: More than 4,000 weekly flights to main international destinations. Spanish airports carried- arrivals and departures- 229.9 Million passengers by 672 Airlines connecting 136 countries and 338 cities. (2016), according to AENA.
Spain is the 3rd largest worldwide (1st in Europe) in High-Speed Network and the European leader with more than 2,500km in service, travelling at an average commercial speed of 222 km/h, higher than that of Japan (218 km/h) and France (216 km/h). And a total railway network over 15,500 km. According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indexes of rail road infrastructure Quality in the world, and one of the best subway systems in major cities.
Spain has the largest EU highway network with 14,701 km. According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indexes of Quality of roads in the world.
Excellent maritime connections, with 46 state-own ports on both the Atlantic and the Mediterranean coasts, with 3 ports among the Top-20 container ports in Europe (Valencia, Algeciras, and Barcelona). According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indexes of Quality of port infrastructures in the world.
Hubs and Connectivity
Over 70 Technology Parks - 66 parks in the Association of Science and Technology Parks of Spain, hosting 6286 companies.
Spain is the 3rd country in the OECD with greater growth in implantation of fiber optic (101.9%).
❖ Broadband penetration in Spanish households keeps growing. In 2015 it was 77.8% and in 2016 it reached 81.2%.
❖ In 2016, fiber optic covers a total of 10,039,416 households, 23.1% more than in 2015. Coverage reaches 55.6% of Spanish households, 10.8 points higher than 2015.
❖ Spain is the European country with the largest fiber optic network.
Spain has got many Institutions that promote incentives in different calls along the year:
▪ The Centre for Industrial Technological Development (CDTI) has got a wide range of grants and loans at competitive low interest rate for technological projects.
▪ The State Secretariat for Innovation in the Ministry of Economy, Industry and Competitiveness (MINECO) also offers support with grants and loans for technological projects developed by companies and public bodies
▪ INVEST IN SPAIN/ICEX has developed a program for supporting foreign companies up to €200,000 for investments with a high degree of R&D in competitive tenders
▪ The National Innovation Company (ENISA) finances SMEs up to €1.5 million with participative loans at a very competitive interest rate and where no-guarantee is required.
▪ The Public organization RED.ES promotes the IT activities of technological companies and start-ups financing investments in infrastructures, equipment and so on.
The International analysis shows that Spain is a country with relatively moderate ratio between Tax Revenues (Including Social Security Contributions ) and GDP (34.4% GDP).
Corporate Income Tax Rate: 25%.
Quality of Life
▪ Spain is the 1st country in Europe in terms of quality of life for ex-pats and 2nd-ranked worldwide
▪ With large communities of many different nationalities, Spain is known for its highly cosmopolitan character. On average, 12.2% of the Spanish residents are foreign-born, a figure that rises to 16-17% in regions like Madrid or Catalonia
▪ One of the largest number of International Schools in Europe
▪ Outstanding & modern health system with very high standards
▪ Favourable fiscal regime for expatriates
▪ Law enforcement: Assurance & stability in business and social life
▪ Excellent climate, first-class gastronomy, wide range of cultural and leisure activities
Source ICEX. To learn about opportunities in Spain by industry please follow this link.