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Spain: The perfect country for investment

By 5 September 2022No Comments

Spain is one of the most important economies in the world, ranking 15th in size, and has an immense capacity to attract foreign investment (currently ranked 11th in terms of foreign direct investment). Here we explain to you why Spain is the perfect country for foreign investment.

Spain’s appeal for investment it’s not only in its domestic market, but also in the possibility of operating with third markets from Spain. This is because Spain has a privileged geo-strategic position within the European Union giving access to more than 2,300 million potential clients in the EMEA Region (Europe, Middle East and Africa). Its strong economic, historic and cultural ties also make Spain the perfect business gateway to Latin America.

Furthermore, Spain is a modern knowledge-based economy with services accounting for over 74% of economic activity. The country has become a center of innovation supported by a young, highly-qualified work force and competitive costs in the context of Western Europe.

Top 5 of European economies

  • With a GDP of $1.2 billion, Spain is the 4th economy of the EU (save for that of the United Kingdom) and the 14th in the world.
  • 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.
  • The right place for international expansión, where 70 out of 100 top companies in Forbes Global 2000 operate in Spain. Besides, more than 14,600 foreign firms have set up their business in Spain.

Powerful infraestructure

  • Spain has the largest network of highways and freeways in the EU, two of Europe’s busiest airports, the world’s third most extensive high-speed rail network and home to three of Europe’s most important ports in container terminal moves.
  • The Global Competitiveness Report (World Economic Forum) ranks Spain 7th worldwide in infrastructures.

Spain has the world’s third most extensive high-speed rail network

Competitive talent

  • A large percentage of the Spanish population have higher education qualifications. 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.
  • Spain ranks fourth in the EU in number of scientists and engineers, according to the latest Institute of Economic Studies (IEE) report.
  • Seven Spanish companies in this ranking that classifies the world’s largest corporations by revenue for fiscal year 2020: Santander, Telefónica, ACS, Iberdrola, BBVA, Repsol and Mapfre.

Taxation and incentives that promotes innovation

  • Spain is one of the countries in the world with the least restrictive regulations for international investment.
  • Spain’s tax burden is similar to the EU average. Spain offers subsidies and grants and has a comprehensive system of tax incentives and exemptions to promote RDI activities, knowledge transfer and job creation.
  • The Spanish tax system is advantageous to international companies that can benefit from the 94 double taxation agreements signed by Spain and currently in force, particularly with Latin American countries.
  • Spain has tax exemptions for ‘stock options’, a favorable regime for foreigners and lowers corporate tax to 15%.

European funds

Spain will receive a total of 140,000 million euros from the European Union Thanks to the Strategic Projects for Economic Recovery and Transformation (PERTE), the mechanism with which the Spanish Government will manage part of the money from the European Funds for the recovery from the crisis triggered by Covid-19.

Spain is the second tourist destination after France in number of annual visitors.

Best quality of life

  • Life expectancy in Spain is longer than in most of the world thanks to Spanish cuisine and the enjoyment of leisure activities. Spain’s universal healthcare leads the world in healthcare systems. Safety, the Mediterranean climate and its good health indicators, etc., have positioned it as one of the best countries to live in Europe -the favorite of expatriates-, which has put the country in the sights of investors.
  • According to the Global Peace Index 2020, it ranks among top 40 countries with the highest peacefulness in the world.
  • Spain is the second tourist destination after France in number of annual visitors, and third country in the world and second in Europe in UNESCO’s World Heritage Site list and world leader in Biosphere Reserves.


Are you thinking of investing in Spain? Kalea Group we are the consultancy you are looking for to make it a successful operation.