Spain: Investing

FDI in Figures

In twenty years, Spain has become the ninth global economic power thanks to its cheap workforce, the spectacular boom in tourism and, starting from the year 2000, the real-estate boom. The development of foreign investments illustrates these changes well. Spain came to depend more and more on its added value, both in terms of training and R&D, as well as high-tech services. The country has therefore made a radical turn towards renewable energies (wind and solar energy). In 2013, Seville will have the greatest photovoltaic production platform on the planet. In addition to this, Spain wants to become one of the world’s key research actors. In order to fulfill these ambitions, it has recently developed the “Malaga Valley” project, which its sponsors hope will become the greatest European research and innovation center dedicated to information and communication technologies.

In 2009, Spain’s FDI stock was EUR 465.5b. FDI flows fell sharply in 2009 with a process of disinvestment. The acquisition of holdings of suverain wealth funds in the Spanish petroleum company CEPSA by the UAE International Petroleum Investment Company was the largest acquisition of 2009. Madrid is the main destination for FDI flows, accounting for 62% of the total.

In terms of FDI appeal, the country’s strengths include: proximity to Latin America, with the presence of a number of Spanish multinational companies, boom in tourism, its highly efficient transport network and development of renewable energies.

Why You Should Choose to Invest in Spain

Strong Points

The country's main strong points are flexibility and adaptability of economic operators and in the quality of life the country offers.

Weak Points

The country's weak points are the low productivity of its manpower, its weak competitiveness as well as a growing trade balance deficit. The complexity of the regulation system with regard to the 17 Autonomous Communities is also a hindrance to investment.

Government Measures to Motivate or Restrict FDI

Spain applies the principle of free establishment and non-discrimination. Foreign investors can operate any type of business and under the same conditions as a local investor. The CEE Council Directive no. 88/361/CEE dated June 24, 1988, concerning the free movement of capital between the residents of member States was adopted in the Spanish legislation by Law no. 18/1992 of July 1, 1992, and came into effect on July 4, 1992 and by Royal Decree 1816/1991 no. 1816/1991 of December 20, 1991 on Foreign Economic Transactions.

The gaming, television, radio and air transport sectors are protected by restrictions for the investors residing outside an EU member country; it is the same for businesses manufacturing and selling arms. In the latter case, these restrictions also concern investors within the community.

Bilateral Investment Conventions Signed By Spain

Spain has signed bilateral agreements with more than fifty countries. 47 agreements can be downloaded from the website of UNCTAD: click here to download these agreements. They define the framework for foreign investment protection in Spain for each of the signatory countries.

Procedures Relative to Foreign Investment

Freedom of Establishment

Yes. 

Acquisition of Holdings

The acquisition of majority interest by a foreign company in a Spanish company is authorized provided that the business is not in the regulated sector of production and trade of weapons.

Obligation to Declare

Investment portfolios from an EU member state are exempt from all declarations whatever their amount. Direct investments can require a prior declaration, when the investment amount or the granted loans exceed 30,000 Euros for a foreign interest holding higher than 50%. The request is to be made with the Register of Foreign Investments, from the Directorate General of Commercial Policies and Foreign Investments (DGPCIE).

Competent Organization For the Declaration

Sub-secretary of state for Commerce

Requests For Specific Authorizations

Investment Opportunities

Investment Aid Agency

Interes

Tenders, Projects and Public Procurement

Visionnetware, Competitions and Tenders
Ted - Tenders Electronic daily, Business opportunities in EU 27
Globaltenders, Tenders & Projects from Spain
Tenders Info, Tenders in Spain
DgMarket, Tenders Worldwide

Other Useful Resources

The investment aid agencies of the autonomous communities

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