Why Invest in Spain

Spain provides a proper business environment, which is why it has managed to become an important recipient of foreign investments during the last years. The increase in sums and percentage of investments are due to several factors, including the stability of the Spanish economy, the friendly legislation or the location on the map.

Business environment

As a member of the EU, Spain has direct access and connections to the entire European Union. Besides, it has a well-developed infrastructure that allows international trading to take place in an efficient way.  Its railway, highway, airport and port networks are a priority to the Spanish government. Having earned its feature of the ninth largest economy in the world makes Spain even more attractive for foreign investors. A stable economy and sustained growth are the results of Spanish reforms in most relevant sectors.

Market and workforce

The international business community prefers Spain due to its wide market and competitive environment. The Spanish market is one of the biggest in Europe, counting more than 47 million consumers, in addition to the 50 million tourists who visit Spain every year. The Spanish labour force includes 18.2 million people in both local and foreign companies at the moment. Actually, Spain has a highly skilled labour force, given the fact that it also has three of top 20 Business School in the world. Moreover, Spanish scientists have high-standard skills, managing to accelerate the development of research and technology in Spain.

Legislation

Spanish legislation provides a high level of legal protection for investors in order to facilitate business activity. Besides, Spain signed bilateral treaties with African and Latin American countries, in order to avoid double taxation and protect mutual investments. Also, Spain is part of some Euro-Mediterranean Association agreements Egypt, Israel, Jordan, Lebanon, Morocco, Tunisia and Algeria.

Taxes

The standard Spanish corporate tax levied on companies activating on the country's territory is 35%. The VAT rate in Spain is 18% since 2010, but still not very high. However, reduced rates of 8% and 4% apply to hotels and restaurants, respectively food, newspapers and books. Special tax systems apply sometimes as tax incentives for foreign investors, as long as certain requirements stipulated by law are met.