As we told you in the previous post, Spain is the perfect country for investment. It’s a competitive economy that provides access to the global market. In this post, find where to invest in Spain.
Foreign investments in Spain
Spain attracts 28.79 billion in foreign investment in 2021, a 17.7% increase on previous year, due to the better performance of investment in the last quarter of 2021, a period in which reached 14,170 million euros.
The Community of Madrid was the one that attracted the most volume of investment with 20,943 million, which represents an increase of 14.5% compared to the same period last year.
It is followed by Catalonia, with a total of 2,968 million after falling 4.8% compared to 2020; Basque Country, with 1,537 million; Andalusia, with 965 million; Valencian Community (856 million); Balearic Islands (334 million); Galicia (222 million); Castilla-La Mancha (187 million); Castile and León (134 million); and Aragon (177 million).
The sector that attracted the most foreign investment during 2021 was the ‘supply of electricity, gas, steam and air’, with 5,801 million, after soaring more than 300% in one year. They are followed by investments in ‘specialized construction activities’, with 5,007 million; ‘programming, consultancy and related activities’, with 1,694 million and ‘retail trade, except motor vehicles’, with 1,138 million.
Most attractive sectors to invest in Spain
The Spanish economy occupies an important place worldwide. Spain has made a great effort to equip itself with infrastructures that facilitate the growth of the economy, in addition to a strong commitment to R&D.
For foreign investors, Spain offers high business opportunities in different sectors, with the ICT, biotechnology and aerospace sectors being the most interesting due to the added value and competitive environment that encompasses them.
Technology
Large companies in the technology sector such as Oracle or Google have already chosen Spain as an investment destination. This list can also include niches that are experiencing rapid growth such as cybersecurity and video games.
Regarding cybersecurity, the sector is becoming increasingly important as a result of the growth of digital transformation and cybercrime. Cybersecurity also helps the optimal development of IoT technologies, Big Data and the Metaverse by protecting the information generated. On the other hand, there is the video game sector. It can be said that in recent years the growth of the sector has been quite accelerated. The rise of Esports, leisure habits and the development of the Metaverse is giving the gaming sector a growing audience and turning it into an interesting business opportunity.
Photovoltaic Energy
The Spanish photovoltaic market has become in recent years an extraordinary focus of attraction for the investment of foreign funds and companies: more than 50% of the photovoltaic in Spain is now in foreign hands. To those already known about the many hours of sunshine and the quality of the electricity grid, two others have been added that have been key: the new regulatory framework for renewable energies established in 2018 and the clear decarbonisation objectives set forth by the Government in the Plan Integrated National Energy and Climate Program (PNIEC) approved in 2021.
More than 50% of the photovoltaic in Spain is now in foreign hands
Tourism
After 3 tough years for the sector, it is finally getting back to its pre-pandemic volume. The progress of vaccination and the elimination of sanitary restrictions have made it possible to reactivate national and international tourism, which is allowing the scaled recovery of the sector. After the summer of 2022, it is expected to recover 90% of the activity prior to the pandemic, reaching 135,000 million euros.
Real Estate
Spain has become one of the countries where most is invested in Real Estate. In 2015 a new expansive cycle of the real estate market began that was characterized by geographical heterogeneity, with the leaders being Madrid, Barcelona, Malaga, the Balearic Islands, Santa Cruz de Tenerife and Las Palmas. With the boom in the Real Estate market, foreign investors, both residents in Spain and non-residents, are betting more and more on Spain as an investment destination, with the Costa del Sol being one of the preferred locations.
During 2021, a new historical maximum was reached in terms of purchases by foreigners, which totaled more than 110,000 homes purchased. In addition, investing in the real estate sector opens doors for foreign investors to obtain the Golden Visa.
Both residents in Spain and non-residents, are betting more and more on Spain as an investment destination, with the Costa del Sol being one of the preferred locations.
Digital Marketing
Digital marketing is an expanding sector that will continue to grow in the coming years. The complexity of this sector has made it necessary for all companies and has given rise to specialists in inbound marketing, content creators, SEO and SEM, user experience, etc. A sector that is becoming larger, necessary and competitive.
Smart Cities
In Spain there is an increasing commitment to smart cities. It has been possible to testify in cities such as Malaga or Seville, urban development projects in which economic, social, technological sustainability and a high quality of life are sought. There are not yet too many companies dedicated to the development of smart cities, so competitiveness is not high and it may represent an opportunity for market penetration.
Now that you know in which sectors you can invest in Spain, contact Kalea Group. We will help you and facilitate the process. Our work knows no borders.
