Spain
Spain is a developed country, a secular parliamentary democracy and a constitutional monarchy, with King Felipe VI as head of state. It is a high-income country and an advanced economy, with the world's fourteenth-largest economy by nominal GDP and the sixteenth-largest by PPP. Spain has one of the longest life expectancies in the world at 83.5 years in 2019. It ranks particularly high in healthcare quality, with its healthcare system considered to be one of the most efficient worldwide. It is a world leader in organ transplants and organ donation.
Spain is a member of the United Nations (UN), the European Union (EU), the Eurozone, the Council of Europe (CoE), the Organization of Ibero-American States (OEI), the Union for the Mediterranean, the North Atlantic Treaty Organization (NATO), the Organisation for Economic Co-operation and Development (OECD), Organization for Security and Co-operation in Europe (OSCE), the World Trade Organization (WTO) and many other international organisations.
Spanish art, music, literature and cuisine have been influential worldwide, particularly in Western Europe and the Americas. As a reflection of its large cultural wealth, Spain has the world's fourth-largest number of World Heritage Sites and is the world's second-most visited country. Its cultural influence extends over 570 million Hispanophones, making Spanish the world's second-most spoken native language.
Spain's capitalist mixed economy is the 14th largest worldwide and the 4th largest in the European Union, as well as the Eurozone's 4th largest.
Spanish companies invested in fields like renewable energy commercialisation (Iberdrola was the world's largest renewable energy operator), technology companies like Telefónica, Abengoa, Mondragon Corporation (which is the world's largest worker-owned cooperative), Movistar, Hisdesat, Indra, train manufacturers like CAF, Talgo, global corporations such as the textile company Inditex, petroleum companies like Repsol or Cepsa and infrastructure, with six of the ten biggest international construction firms specialising in transport being Spanish, like Ferrovial, Acciona, ACS, OHL and FCC.
Commercial, merchant and saving banks are involved in the great majority of financial transactions in all sectors of the economy. Saving banks handle business transactions and are very similar in their operations to the commercial banks but tend to specialise in private savings, personal loans and the financing of house purchases.
The Spanish state levies taxes on personal income and wealth, corporate profits, value added goods/services, transfers of goods and services among non-trading taxpayers, estates and gifts, etc.
Some of these taxes are administered and collected by the autonomous regions. In addition, local authorities levy taxes on property, increase of value of urban land, construction works and business activities, though the latter applies only to large companies.
The Madrid Stock Exchange is the largest securities market in Spain. The Spanish equity market has four stock exchanges: Barcelona Stock Exchange (Bolsa de Barcelona), the Bilbao Stock Exchange (Bolsa de Bilbao), and the Valencia Stock Exchange (Bolsa de Valencia), along with the Madrid exchange.
Since the mid-2000s, Spain has played an important role both as a destination for and source of foreign investment. Strengthening FDI from abroad will help Spain continue to reap the benefits for the Spanish economy, while the country aspires to increase expansion in new and existing markets.
Globalization has helped accelerate the growth of FDI, allowing it to become one of the key factors of the global economy. Developed countries, and the EU in particular, have always been the leading players in FDI, although developing countries are assuming an everincreasing role. In the case of Spain, since the mid-2000s, the country has become not only an important destination for FDI, but also a source, making Spain today Europe´s 3rd economy for outward FDI as a share of GDP and second for inward FDI. Most of Spain´s inward FDI has been channelled into the services sector with outward FDI mainly driven by large, productive companies. As regards geographic distribution, Europe and the U.S. (albeit to a lesser degree) continue to be main investors in Spain, even though developing countries are increasing penetration. Most outward investment is destined towards Europe and Latin America. Foreign investment in Spain, as well as Spanish investment abroad, has proven to be profitable, with positive spillover effects in terms of GDP growth, employment, exports, and efficiency gains for Spanish firms. Investment abroad by Spanish companies has also been beneficial, often accompanied by greater investment in human capital and R&D.
Investments in Spain are mainly oriented towards financial and insurance services, real estate, manufacturing, scientific, professional, technical, administrative support service activities, wholesale and retail trade, transportation and storage, and the energy sector.
The finance and insurance industry was the main recipient of foreign direct investment (FDI) in Spain in 2020, accounting for 23.2% of the total volume. IT and telecommunications was the second industry in importance, with a 22.8% quota. These two industries attracted over 45% of the total volume of FDI.
They were followed by the manufacturing industry (14.4%), construction and real estate (7.8%), and transportation and storage (7%).
Spain has many attractive aspects for investors, among others:
• The Spanish economy has steadily surpassed that of its European counterparts over the last five years, in pre-pandemic circumstances.
• Connectivity to LATAM and MENA: A highly developed and internationalized business sector favors partnerships and access to other markets.
• Privileged geographic situation: a unique logistics hub for commercial operations and passenger transfers.
• Spanish infrastructure is rated seventh in the world in the Global Competitiveness Report (World Economic Forum), particularly our highly efficient transport network and our development of renewable energies.
· Spain is one of the countries in the world with the least restrictive regulations for international investments (the OECD FDI Regulatory Restrictiveness Index ranks Spain as the 10th country in the world with the least restrictive regulations for international investments). Foreign investments in Spain do not require previous approval, as a general rule, with the exception of investments in activities that affect public security, public order, and public health.
· Spain has an extensive and comprehensive system of aid and incentives, with special emphasis on encouraging employment, regional investment, RDI, specific industrial sectors, and SMEs. Aid can also be obtained from the state, the regions and the EU, in addition to a wide range of public institutions that offer financing under favorable terms.
· A large percentage of the Spanish population has a higher education. Companies can find specialized talent to cover their ICT vacancies more easily in Spain than in neighboring countries and at a more competitive cost than in other major European economies.
· Longer and better lives. The life expectancy of Spaniards is longer than in most of the world thanks to the Spanish cuisine and the enjoyment of leisure activities. Spain's universal healthcare leads the world in healthcare systems.
Spanish Intellectual Property (“IP”) legislation is consistent with other EU Member States’ IP laws. Spain has ratified the most relevant international treaties in this field, which entails that non-Spanish nationals may obtain protection of their IP rights in Spain, and that Spanish nationals may obtain such protection in virtually every other country in the world.
Spain has a civil law system based on comprehensive legal codes and laws rooted in Roman Law. Civil law is applied throughout the entire territory of Spain, but there are autonomous communities that have their own civil law system, which is applied in relation to certain legal issues.
Our law firm VLO provides legal services for corporate and private clients in Spain. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Spain is a member of the United Nations (UN), the European Union (EU), the Eurozone, the Council of Europe (CoE), the Organization of Ibero-American States (OEI), the Union for the Mediterranean, the North Atlantic Treaty Organization (NATO), the Organisation for Economic Co-operation and Development (OECD), Organization for Security and Co-operation in Europe (OSCE), the World Trade Organization (WTO) and many other international organisations.
Spanish art, music, literature and cuisine have been influential worldwide, particularly in Western Europe and the Americas. As a reflection of its large cultural wealth, Spain has the world's fourth-largest number of World Heritage Sites and is the world's second-most visited country. Its cultural influence extends over 570 million Hispanophones, making Spanish the world's second-most spoken native language.
Spain's capitalist mixed economy is the 14th largest worldwide and the 4th largest in the European Union, as well as the Eurozone's 4th largest.
Spanish companies invested in fields like renewable energy commercialisation (Iberdrola was the world's largest renewable energy operator), technology companies like Telefónica, Abengoa, Mondragon Corporation (which is the world's largest worker-owned cooperative), Movistar, Hisdesat, Indra, train manufacturers like CAF, Talgo, global corporations such as the textile company Inditex, petroleum companies like Repsol or Cepsa and infrastructure, with six of the ten biggest international construction firms specialising in transport being Spanish, like Ferrovial, Acciona, ACS, OHL and FCC.
Commercial, merchant and saving banks are involved in the great majority of financial transactions in all sectors of the economy. Saving banks handle business transactions and are very similar in their operations to the commercial banks but tend to specialise in private savings, personal loans and the financing of house purchases.
The Spanish state levies taxes on personal income and wealth, corporate profits, value added goods/services, transfers of goods and services among non-trading taxpayers, estates and gifts, etc.
Some of these taxes are administered and collected by the autonomous regions. In addition, local authorities levy taxes on property, increase of value of urban land, construction works and business activities, though the latter applies only to large companies.
The Madrid Stock Exchange is the largest securities market in Spain. The Spanish equity market has four stock exchanges: Barcelona Stock Exchange (Bolsa de Barcelona), the Bilbao Stock Exchange (Bolsa de Bilbao), and the Valencia Stock Exchange (Bolsa de Valencia), along with the Madrid exchange.
Since the mid-2000s, Spain has played an important role both as a destination for and source of foreign investment. Strengthening FDI from abroad will help Spain continue to reap the benefits for the Spanish economy, while the country aspires to increase expansion in new and existing markets.
Globalization has helped accelerate the growth of FDI, allowing it to become one of the key factors of the global economy. Developed countries, and the EU in particular, have always been the leading players in FDI, although developing countries are assuming an everincreasing role. In the case of Spain, since the mid-2000s, the country has become not only an important destination for FDI, but also a source, making Spain today Europe´s 3rd economy for outward FDI as a share of GDP and second for inward FDI. Most of Spain´s inward FDI has been channelled into the services sector with outward FDI mainly driven by large, productive companies. As regards geographic distribution, Europe and the U.S. (albeit to a lesser degree) continue to be main investors in Spain, even though developing countries are increasing penetration. Most outward investment is destined towards Europe and Latin America. Foreign investment in Spain, as well as Spanish investment abroad, has proven to be profitable, with positive spillover effects in terms of GDP growth, employment, exports, and efficiency gains for Spanish firms. Investment abroad by Spanish companies has also been beneficial, often accompanied by greater investment in human capital and R&D.
Investments in Spain are mainly oriented towards financial and insurance services, real estate, manufacturing, scientific, professional, technical, administrative support service activities, wholesale and retail trade, transportation and storage, and the energy sector.
The finance and insurance industry was the main recipient of foreign direct investment (FDI) in Spain in 2020, accounting for 23.2% of the total volume. IT and telecommunications was the second industry in importance, with a 22.8% quota. These two industries attracted over 45% of the total volume of FDI.
They were followed by the manufacturing industry (14.4%), construction and real estate (7.8%), and transportation and storage (7%).
Spain has many attractive aspects for investors, among others:
• The Spanish economy has steadily surpassed that of its European counterparts over the last five years, in pre-pandemic circumstances.
• Connectivity to LATAM and MENA: A highly developed and internationalized business sector favors partnerships and access to other markets.
• Privileged geographic situation: a unique logistics hub for commercial operations and passenger transfers.
• Spanish infrastructure is rated seventh in the world in the Global Competitiveness Report (World Economic Forum), particularly our highly efficient transport network and our development of renewable energies.
· Spain is one of the countries in the world with the least restrictive regulations for international investments (the OECD FDI Regulatory Restrictiveness Index ranks Spain as the 10th country in the world with the least restrictive regulations for international investments). Foreign investments in Spain do not require previous approval, as a general rule, with the exception of investments in activities that affect public security, public order, and public health.
· Spain has an extensive and comprehensive system of aid and incentives, with special emphasis on encouraging employment, regional investment, RDI, specific industrial sectors, and SMEs. Aid can also be obtained from the state, the regions and the EU, in addition to a wide range of public institutions that offer financing under favorable terms.
· A large percentage of the Spanish population has a higher education. Companies can find specialized talent to cover their ICT vacancies more easily in Spain than in neighboring countries and at a more competitive cost than in other major European economies.
· Longer and better lives. The life expectancy of Spaniards is longer than in most of the world thanks to the Spanish cuisine and the enjoyment of leisure activities. Spain's universal healthcare leads the world in healthcare systems.
Spanish Intellectual Property (“IP”) legislation is consistent with other EU Member States’ IP laws. Spain has ratified the most relevant international treaties in this field, which entails that non-Spanish nationals may obtain protection of their IP rights in Spain, and that Spanish nationals may obtain such protection in virtually every other country in the world.
Spain has a civil law system based on comprehensive legal codes and laws rooted in Roman Law. Civil law is applied throughout the entire territory of Spain, but there are autonomous communities that have their own civil law system, which is applied in relation to certain legal issues.
Our law firm VLO provides legal services for corporate and private clients in Spain. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
