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Invest in the Basque Country. Guide for Investors
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Invest in the Basque Country
2010
0. Contents
1 Basque Country: Quality of Life 5
2 Talent 7
Higher Education 7Occupational Training 8Bilingual education and international schools 8
3 Main Sectors 11
Priority Clusters 11Sectoral Associations 19Preclusters 22Sectoral Diversification Strategies 22
4 Industrial Subcontracting: easy access to highly specialised companies 25
3
9 Investment Support 43
Grants 43Foreign Investment: legislation 44Investments made by foreign companies in the Basque Country 44Labour costs and productivity 45
10 Incorporating a company 47
Steps to take 47Legal Formats 49
11 SPRI Network Abroad 51
12 Other bodies to boost competitiveness 53
13 Websites 55
5 Infrastructure and Logistics 27
Roads 27Railways 27Seaports 27Airports 28Logistics Centre 28SPRILUR 29Business Innovation Centers 29
6 Technological and Innovation Environment 31
Basque Technology Park Network 32Exhibitions and conferences 35
7 Outstanding Projects 37
ESS- Bilbao, one of the largest European scientific infrastructures 37Marine energy 38Electric vehicle. Agreements with Repsol and Mercedes-Benz 39
8 Tax and Self-financing Systems: Fiscal Autonomy 41
Demography
Population: 2,172,175
Population density (Inhabitants per sq. km.) 300.23
Government
The Basque Country has its own Parliament.
Main cities: Bilbao, San Sebastián-Donostia, Vitoria-Gasteiz
Official languages: Basque and Spanish
Geography and Climate
Land surface area: 7,235 sq. km.
Climate: Atlantic in coastal areas and continental inland
Average annual temperature: 14.7ºC
Economy (2008 data)
GDP (€M): 68,429
GDP pc (€): 31,712
GDP pc (UE-27=100): 137,2
Industrial sector GDP (€M): 17,429,753
Exports (€M): 20,279.43
Imports (€M): 20,118.01
Export behaviour (Exports/GDP): 29.64%
R&D spending to GDP ratio: 1.85%
Research personnel to occupied population ratio (EDP): 15.0%
R&D spending by companies: 81.1%
Infrastructures
Airports: Bilbao, Hondarribia and Foronda
Main seaports : Bilbao and Pasaia
Technology parks: (4) Bizkaia, Miramón, Miñano and Garaia
Basque Country – Key Data
Nowadays the Basque Country is considered one of the leading innovation and competitiveness poles in southern Europe. The UN Human Development Index places us among the foremost European regions and very positive data may be seen in relevant indicators such as the unemployment rate, the level of income per capita, GDP growth, investment in R&D&I and the commitment to new technologies.
Moreover, the geographical, social, cultural and eco-nomic conditions create highly attractive life expec-tations.
GasteizVitoria
BilboBilbao
DonostiaSan Sebastián
5
The Basque Country is a modern society that offers high levels of quality of life, advanced education and healthcare systems and an extensive range of cultural and leisure opportunities.
With GDP pc of 31,712 euros in 2008 (137.2 compared to the EU-27 average of 100) and one of the highest Human Development Index rankings in Europe, Basque society occupies an outstanding position among other regions in its surrounding area.
The natural heritage is made up of nature reserves and an exceptional coastline, offering a host of possi-bilities for outdoor sporting activities. There are also several golf clubs spread throughout the 3 historical territories of the Basque Country.
The cultural infrastructures are subject to permanent innovation, with the Guggenheim Museum in Bilbao, a masterpiece designed by the American architect Frank O. Gehry, and an outstanding example of the most avant-garde 20th century architecture, as its leading exponent.
To the east, the city of San Sebastián plays host to the annual film festival, which has been running since 1953 and is the most important event in the cinema sector in Spain and Spanish speaking countries.
Vitoria prides itself on organising its annual Jazz Festival which, throughout its many editions, has attracted the participation of leading starts such as Oscar Peterson, Ella Fitzgerald and Sonny Rollins.
Meanwhile, the Rioja Alavesa region, standing the banks of the River Ebro and protected by the southern slopes of the Sierra de Cantabria, has a privileged microclimate for vine growing. The Wine Route runs through it, visiting several towns in the region, traditionally linked to the wine culture, which still conserve the charm of small mediaeval settlements raised among vineyards and hold an extensive natural, archaeo-logical and artistic heritage. They are also provided with a range of accommodation, culinary and service options capable of satisfying the leisure and entertainment requirements of the most demanding visitor.
Basque cuisine enjoys great international appreciation and there are reputed cooks who have managed to place our culinary culture in a position of prestige on the world map. Chefs like Juan Mari Arzak, Martín Berasategui and Pedro Subijana oversee their own 3-star Michelin restaurants.
Authority over public health in Spain has been transferred to the Autonomous Communities. The Basque Country has a public healthcare system that provides attention for all and is administered by the Basque Government through Osakidetza, the Basque Health Service, which, according to experts, dispenses the best healthcare in the whole of the Spanish state, with resources unknown up to now in preventive medi-cine. Life expectancy is slightly higher than the European average and the waiting list for operations does not exceed 20 days.
Euskadi, the Basque Country, is a committed, competitive and innovative region that forms an ideal envi-ronment for carrying out business activities.
1. Basque Country: Quality of Life
6
The skills qualification of the productive workforce is one of the strengths of Basque business fabric and personnel training is one of the priorities of public policies.
The Basque Autonomous Community (CAPV) currently stands 3rd among European regions with the highest num-ber of university graduates (population between 25 and 65 years of age).
REGION %
1 Walloon Brabant (BE) 47.6
2 Inner London 47.5
3 Basque Country - Euskadi 42.5
4 Hovedstaden (DK) 42.0
5 Brussels-Capital Region 41.0
6 Flemish Brabant (BE) 40.5
7 Etelä-Suomi (FI) 40.3
8 Utrecht (NL) 40.3
9 Île de France 38.9
10 Stockholm 38.9
SPAIN 29
EU-27 23
Source: Eurostat Regional Yearbook 2009
7
Higher Education
University of the Basque Country
The successor of the University of Bilbao (1936), it is a public university with campuses in the three terri-
tories that make up the Basque Country: Bizkaia, Álava and Gipuzkoa. It provides higher education in many
fields, ranging from Medicine and the Sciences, covering many different specialities, to Fine Arts, Law,
Economics and Business Science and Industrial Engineering.
www.ehu.es
University of Mondragón/
Mondragon Unibertsitatea
This is a private university that started its educational activity in 1943. It belongs to and is backed by the
Mondragón Corporación Cooperativa (MCC) industrial group and is Europe’s first cooperative university.
There are three faculties: the Higher Polytechnic School, the Business Science Faculty and the Faculty of
Humanities and Education Sciences, as well as two research centres: Ikerlan and Ideko. It was the first
university in the state to obtain the ISO 9001 quality certificate, in 1995.
www.mondragon.edu
University of Deusto
This is a private university run by the religious order of the Society of Jesus. It has campuses in Bilbao,
San Sebastián and Vitoria offering diplomas, degrees, postgraduate and third cycle studies. One of its
best known sections has always been the Law Faculty, which has produced many important legislators
and jurists. The Faculty of Economics and Business Administration, also known as “La Comercial”, is also
outstanding.
www.deusto.es
University of Navarra
Four further degree courses are offered by the University of Navarra: Industrial (Mechanical) Engineering,
Materials Engineering, Electrical, Electronic and Control Engineering, Manufacturing Engineering and Mana-
gement, which also has the Higher Institute of Secretarial and Administration Courses, at its two campuses
located in San Sebastián.
www.unav.es
2. Talent
8
Occupational Training
The Basque Country has an extensive network of centres of excellence in occupational training, leading to
a high level of professional skills among the workforce.
The association HETEL- Heziketa Teknikoko Elkartea (http://www.hetel.org) groups together an important
number of occupational training centres in the Basque Country, which in turn belong to the Basque network
of integral occupational training centres.
These centres provide basic training, regulated training cycles and training linked with specific qualifica-
tions.
The network of integral occupational training centres, characterised by enabling the permeability of the
institutional training available, promotes worker qualification efforts to the maximum and guarantees the
correct operation of the integral occupational training system.
Standing out among the Singular Technical Institutes for Technological Innovation is the Machine Tool Insti-
tute in Elgoibar, a public centre belonging to the Basque Government, focusing on service to industry and
to the community through technical training and the dissemination of technology.
http://www.imh.es
Bilingual education and international schools
The Basque Country is home to prestigious international educational centres for the pre-school, primary
and secondary education cycles:
German School of Bilbao - Deutsche Schule Bilbao www.dsbilbao.org
French School of Bilbao - Lycée Français de Bilbao www.c-francaisbilbao.com
American School of Bilbao www.asob.es
St. George English School of Bilbao www.st-george.com
10
For more than 100 years the Basque Country has housed one of the most important industrial con-centrations in the Spanish state and represents one of the most significant financial centres on the European Atlantic axis. Its long industrial tradition, originating in the steelmaking and shipbuilding sec-tors, has evolved towards more technologically advanced sectors.
The Basque industrial sector is still highly represen-tative in the national industrial turnover, with much higher percentages than would correspond accor-ding to criteria of population (4.65%), GDP (6.3%) and geographical extension (1.5%), etc. Two sec-tors which stand out are steel, which accounts for 90% of the sector in Spain, and machine tools, accounting for 80%.
SMEs form an extremely varied, dynamic support industry and are strongly committed to quality. This extensive network of small enterprises with sub-products for other larger companies, some of which are leaders in their sector, is one of the most attractive features of the CAPV as a place to invest.
The Basque Country was a pioneering region in introducing a cluster policy. A clusterisation poli-cy was implemented in the CAPV in the 1990s, in response to the loss of competitiveness brought about by the recession of the late 1980s and early 1990s. Its effects on the Basque business fabric were very positive, to the point that this policy has been strengthened up to the present day.
In the Basque Country there are currently 12 priori-ty clusters, which have 3 main ways of funding:
- membership fees
- sale of services
- Basque Government
11
Priority Clusters
ACEDE- Basque Country Association of the Home Appliances Industry
The members of the Basque domestic appliances cluster, some of which are world leaders in components
(especially in safety components for gas appliances) and finished product, account for 92% of sector tur-
nover in the Basque Country and represent 40% of the sector in Spain.
The only Basque finished product manufacturer in the sector, FAGOR, occupies the leading places in Spain,
France and Poland and is the 5th company among multinationals serving the European market.
The members have participated in creating Technology Centres and have their own R&D centres, among
which we can highlight: Hometek, oriented towards domestic appliances, and Stirling Development Centre,
which is seeking new efficient developments in energy generation and use. The cluster is currently promo-
ting a home-oriented Living Lab.
ACICAE- Automotive Cluster of the Basque Country
The automotive cluster in the Basque Country accounts for 30% of the sector in Spain. The specific weight
of the only OEM, Daimler Vitoria, producing almost 100,000 vehicles annually with 3,000 employees,
stands out.
One important characteristic is that the Basque automotive industry is comprehensive, with the entire value
chain in a very small area, from steel makers, capital equipment manufacturers and machine tool builder to
die makers and machining workshops, and including universities and research centres.
Moreover, the Basque sector is present in all vehicle functions: drivetrain (44%), powertrain (28%), internal
items (26%), structural items and bodywork (19%), external items (7%), electronics (7%) and wheel hubs
(3%).
The AIC-Automotive Intelligence Center (http://www.aicenter.eu), inaugurated in 2009, is the only value
generation centre that is helping the entire automotive sector to cooperate in areas such as knowledge,
training, technology, industrial development and new business opportunities.
3. Main Sectors
12
ACLIMA- Environmental Industry Cluster of the Basque Country
The Basque environmental sector accounts for 2.25% of our region’s GDP. The greatest experience of the
members of ACLIMA lies in three fields:
- waste: the technical solutions which have been developed are extensive and range from technologies
to process very specific types of waste, and management, including transport and logistics, of muni-
cipal solid waste to performing customised R&D projects for waste treatment and recovery. There is
specific experience in the collection, selective treatment and recycling of Waste Electrical and Electronic
Equipment (WEEE), automotive waste management, hydrocarbon recovery, integrated management of
all kinds of hazardous industrial waste, PCB-polluted waste and recovery of waste from the agro-food
industry.
- soil pollution: Eco-industry at ACLIMA has taken part in the construction of internationally pioneering
infrastructures to enable treatment and storage of polluted soil and has acquired know-how and experien-
ce in assessing contaminated land and buildings, as well as in their decontamination and recover, using
innovative systems.
- advanced environmental services: these include environmental advice, environmental policy planning,
resisting and adapting to climate change, environmental impact studies, environmental diagnosis and
audits, environmental management systems and legal advice.
Important projects:
- Carbon Footprint: Measuring greenhouse gas emissions from waste management companies
- Assessment of aerosol emission factors in large combustion plants
- PROLUX: discharge lamp recycling process improvement
- SORMEN: innovative technology to separate non-ferrous metal waste from electrical and electronic
equipment
- REFLATEK: development of viable technology to recycle latest generation flat TV screens
13
AFM- Spanish Association of Machine Tool Manufacturers
In the European Union ranking of the leading machine tool producer and exporter countries, Spain is in
third place. In the world, it is ranked ninth as a producer and exporter. More than two thirds of the Spanish
machine tool manufacturing companies are located in the Basque Autonomous Community.
Basque machine tool manufacturing companies work mainly in the following sectors:
- Automotive: highly specialised in machining, press-forming and assembly.
- Wind power generation: well positioned in several large-scale applications: rotor bushes, casings, flan-
ges, etc.
- Aeronautics: leadership in some key applications such as turbine blade grinding, high speed milling,
carbon fibre taping, etc.
- Rail: producers of complete production and maintenance lines for wheels, axles and bogies, as well as
numerous milling, turning and straightening solutions.
AFM also has its own technology unit, INVEMA (http://www.invema.es ), the machine tool research foun-
dation and collaborates closely with the Machine Tool Institute – IMH in Elgoibar (Gipuzkoa) and with Pros-
chools (http://www.proschools.es ), a consortium specialising in educational technology transfer.
ENERGY CLUSTER - Association Cluster of Energy
The members of the Basque energy cluster account for 23% of Basque GDP.
Sector activities cover practically the entire energy value chain, not only in electricity but also in natural gas
and petroleum products, with the exception of exploration for and production of fossil energies. In the case
of natural gas, in addition to a regasification capacity of 800,000 Nm3/h, the sector covers products and
services inherent to distribution and consumption. In the case of oil and petroleum products, the Basque
Country has a refining capacity of 12 million tonnes of crude per year. The electricity subsector is perhaps
more complete because it ranges from generation to consumption, with an installed power capacity from
combined cycle, coal and cogeneration plants of 3,000 MW and with a very powerful and international
auxiliary equipment manufacturing sector.
14
As leading companies internationally we should mention:
Iberdrola, leading company in the world in installed power from renewable energy sources.
Sener is the world leader in solar thermal electric power plants with heat storage.
Gamesa is the world’s third largest manufacturer of wind turbines.
Petronor is the largest oil refinery in the state.
There are many other companies which are internationally established and recognised, especially in the
field of electrical equipment and power electronics.
The cluster is also aware of the basic importance of research, which is oriented mainly towards moder-
nising electrical networks and transformer substations, as well as electricity generation using renewable
energies such as thermal electric solar, wind, waves and the electric vehicle.
PAPER CLUSTER- Basque Paper Cluster
The paper making sector is deeply rooted in Basque production activity and has historically been a consi-
derable source of prosperity in many regions.
The entire value chain for the paper making sector is present in the Basque Country, ranging from forestry
plantations to a sectoral training centre and including manufacturers not only of end product but also of
machinery and capital equipment for use in the manufacturing process.
The sector has been constantly concerned about training for the people who are involved in it, and created
its own training centre more than 40 years ago.
Together with Catalonia and Aragón, the Basque Country is one of the three most important paper making
areas in the state and is, without any doubt, the one with the highest concentration of companies working
in the paper engineering and to paper capital goods, equipment and consumables, as well as suppliers/
distributors of paper raw materials.
Moreover, average export levels in excess of 40% prove that it is an industry open to abroad that competes
with considerably bigger structures on the world market.
15
EIKEN- Basque Audiovisual Cluster
The companies in the Basque Audiovisual Cluster generate strategic projects to consolidate a sector that
is facing a radical transformation worldwide due to digitalisation, with important growth prospects in the
so-called leisure and entertainment field.
The Basque Country has a public broadcaster, Euskal Irrati Telebista (EiTB), which acts as the driving force
for the sector. It is the major communications group in the Basque Country, with five television and five
radio stations, as well as being present on Internet through its extension in different channels 2.0. EiTB is
also the first communications group to be distinguished with the European Excellence Award, in 2009, by
the European EFQM judging panel. Two years earlier the Basque public broadcaster had inaugurated its
new headquarters in Bilbao, totally digitalised and promoting the Group’s multimedia concept.
Two specific audiovisual technology centres play an important role in making the sector more dynamic and
keeping it aligned with the state of the art in new technologies. One of these is VICOMTECH, the Visual
Communication and Interaction Technologies Centre. It is an applied research centre that works in the field
of interactive computer graphics and multimedia, located in the San Sebastián Technology Park (Gipuzkoa).
The other, EUVE, is located in the Miñano Technology Park in Alava. EUVE (European Virtual Engineering)
is a technology centre that specialises in Virtual Reality, Television, Virtual Engineering, Meteorology and
Information Systems, Training and Support for Making Decisions.
BASQUE MARITIME FORUM- Maritime Industries Cluster (Shipbuilding)
The companies in the Basque maritime sector are classed into four mail lines of activity: shipbuilding, fis-
hing and merchant vessel operators and auxiliary industry (equipment manufacturers and subcontractors),
accounting for approximately 2.1% of GDP in the CAPV.
The chief products exported by the Basque maritime sector, some of which are world class references,
are FORAN shipbuilding design software, equipment such as engines, pumps, tuna fishing ships, suction
dredgers, offshore vessels, etc.
The sector is currently involved in the following important technological projects:
- Design of an “Intelligent Fishing Vessel”, based on ecological parameters, respectful with the environ-
ment, innovative in its propulsion system and in reducing emissions.
16
- Recyboat: Creation of a system for breaking and recycling disused recreational craft.
The present trend is the construction of offshore vessels (oil and gas rigs) and the transport and installation
of wind turbines on continental shelves. Smaller but more specialised vessels are being built to provide
service to offshore platforms. The intention is to increase the turnover of the maritime industry in the
marine energy field.
GAIA- Electronics, Information Technology and Telecommunications
Cluster Association of the Basque Country
Basque companies in the electronics, information technology and telecommunications sector account for
about 5% of the Basque Country’s GDP.
The sector is characterised as one with “grey matter”, professional orientation in its proposals and strongly
linked to other driver sectors of the economy, such as energy, transport, public administration, banking
and services. Its main activities focus on the following sectors:
- Products and systems: software subcontracting, IT solutions, telecommunications networks / radio,
components, hardware subcontracting, power electronics
- Services: operations and maintenance / consultancy and engineering
The chief export products are electronic IT and communications systems intended for:
- Improving production activities (industrial process control, data capture systems, security systems, pro-
cess monitoring systems, etc.)
- Commodity distribution management (control, monitoring and regulation of water, electricity, gas, etc.
distribution)
- Advanced electronic equipment for energy generation (inverters, safety devices, monitoring and regula-
tion systems, etc.)
- Electronic equipment for transport (onboard electronics, information systems, energy control systems,
etc.)
- IT system security (incident management, alarms, antivirus, etc.)
17
- Security in large infrastructures (access control, alarm management, incident monitoring, intelligent de-
cision support systems, etc.)
- Management IT systems for SMEs (ERPs, CRM, Intelligent Business, document handling, etc.)
The main R&D activity of Basque companies in the ICT sector focus on 2.0 service platforms, technologies
for data exchange between systems, social involvement models in the use of technologies, nanoelectro-
nics-sensorics, and development of power electronic components.
HEGAN- Aeronautics and Space Cluster of the Basque Country
The weight of Basque aerospace business accounts for 17% of the sector in Spain. The Basque cluster
groups together nearly all the companies in the aerospace sector in the CAPV, of which 98% work in aero-
nautics and only 2% on space activity, where SENER stands out.
The Basque aeronautics sector includes important TIER 1 companies like AERNNOVA and ITP, specialising
in engines (turbines) and airframes and supplying the main OEMs in the sector (companies like Boeing, Air-
bus and Embraer). In addition, there is an auxiliary business framework throughout the entire value chain,
made up of more than 50 business groups and companies. The current aspiration is to achieve TIER 1
listing at all levels of the value chain.
Lost wax casting technology, used by companies in the cluster, enables complex-shaped, seamless, mo-
noblock parts to be manufactured.
The organisations that form the cluster are present in nearly all the most important international progra-
mmes, supplying large fitted airframes, complete engine subsystems and products and services for the
space, systems and equipment sub-sectors. They are capable of managing the complete product chain:
R&D, design, manufacture, integration, testing, certification and product support, for world class custo-
mers in the sector.
The Basque aerospace sector has a specific technology centre, the Aeronautic Technology Centre (http://
www.ctaero.com ) and the R&D investment effort made in the last 15 years by sector companies, which
was 18%, contributing to leadership in the aeronautic certification process, resulting in 100% of the mem-
bers and their special processes having EN9100 and NADCAP certification, respectively.
18
UNIPORT- Port of Bilbao
The maritime and port sector in Bilbao fits into the services sector linked to the international business of
industrial companies, both as exporters and as importers.
The most outstanding feature of the port of Bilbao, from the point of view of goods, is the wide range of
specialisation, as there are specialised companies and terminals for the different types of traffic, which
can roughly be summarised as follows: containers, conventional cargo, project cargo, solid bulk, hydrocar-
bons, LNG regasification and storage, chemicals, liquid food bulk, perishables, vehicles, logistical depots
and storage, bonded warehouses and tax warehouses.
With regard to infrastructures, the port of Bilbao has an extensive surface area available, to be increased
by 500,000 square metres of new docking area with a draft of 20 metres before the end of 2011.
Largest vessels handled
Tanker: Hellespont Grand: LOA 378.01 m, draft 21.35 m. Al Andalus: LOA 362.37 m, draft 26.10 m.
Bulkcarrier: LOA 282.00 m, draft 17.00 m.
Container: MSC Candice: LOA 336.67 m, TEU 9,200
Approach channel: 35-23 m draft.
Maximum tidal range 4.6 m.
Docks with draft up to 32 m.
19
MLC-ITS (Mobility and Logistics Cluster)
The mission of the Basque logistics cluster is to achieve comprehensive competitive improvement in our
Eurozone through the players and companies involved in logistics and transport, based on cooperation,
innovation and interaction.
The purpose is to become a meeting place for all the players taking part in the logistics and transport field
in our Eurozone (Basque Country and nearby geographical areas) in order to enhance their synergies and
innovation in favour of greater sustainability and competitiveness.
Sectoral Associations
The important relative weight of other sectors gives an idea why some Spanish sectoral associations have
their headquarters in the Basque Country, due fundamentally to the high concentration of these sectors in
the region. This is the case of the following:
AGRAGEX- Manufacturers/ Exporters Association of Agricultural Machinery,
Components, Irrigation Systems, Livestock and Post Harvesting Equipment
The Spanish Association of Agricultural Machinery, Components, Irrigation Systems, Livestock and Post
Harvesting Equipment Manufacturers and Exporters was created with the primary aim of promoting sales
in foreign markets for its member companies. AGRAGEX has recently been chosen by the Spanish Foreign
Trade Institute (ICEX) to carry out an ambitious communications plan in sectors with a high technological
content.
The goal is to raise awareness of the image of Spain as a producer country of equipment and machinery
with state-of-the-art technology.
20
AMT- Association of Machine Components/ Accessories Manufacturers
The Basque companies which are members of the Association do not restrict themselves to manufacturing
accessories, components, equipment and tools for machine tools but also produce technology and offer solu-
tions, thereby providing a complete service, which is the key to the success of their growth. It could be said that
it is a cutting edge country in machining engineering.
The effort that Basque companies put into research, design and innovation, together with fast, customised
attention, has achieved them worldwide recognition and enabled them to diversify their products into important,
innovative and complex sectors of the industrial world spread over the five continents, and allowing the Basque
Country to be placed among the 20 leading producers of machine tool components and accessories in the
world.
FLUIDEX- Spanish Association of Fluid Handling Equipment Equipment Exporters
The fluid handling equipment manufactured by Spanish companies is exported mostly to EU countries and
the USA. The foremost export products are seamless steel tubes, cryogenic valves, valves for the chemi-
cal and petrochemical industries, tube fittings and flanges.
The projects sector covers all fluid handling equipment installed in new facilities for oil, gas, petrochemical,
water treatment or other uses. Sales in this field are to the engineering firms (EPC contractors) that make
industrial, petrochemical and water treatment plants. It is a field with high technological requirements,
where flexibility, response capability, the design capability of the company and quality levels play a funda-
mental role.
FUNDIGEX- Castings Exporters Association of Spain
The Castings Exporters’ Association of Spain groups together foundries that supply rough cast, partially
machined or completely finished parts in a wide variety of materials and alloys. With the ultimate goal of
increasing the competitiveness of its member companies through internationalisation, the Association
focuses its efforts on organising the most representative trade fairs for its members and trade missions
to those markets that offer the greatest business opportunities.
21
HERRAMEX- Hand Tool Manufacturers Association
The Spanish hand tool sector is concentrated mostly in the Basque Country. It is a sector with a long ex-
porting tradition and pioneering technology. Basque hand tools offer the international market total quality
assurance, based on constant research, high manufacturing technology and a high prestige steel making
tradition.
The result is an extensive range of tools, produced with the most suitable alloys, with a design which is
aesthetically refined, fully functional and ergonomic and, of course, with a perfect finish and presentation.
The leading export products are adjustable wrenches, open end spanners, tubular box spanners, pipe
cutters, etc. Among the leading companies in the sector are multinational corporations.
MAFEX- Spanish Association of Manufacturers and Exporters of
Equipment and Services for the Railway Industry
The experience and know-how of the companies associated to MAFEX keep the rail sector in a position of
international leadership. To face the sector’s current challenges, the Association carries out collective strategic
activities for its members, such as taking part in the most important trade fair in the sector, INNOTRANS.
SIDEREX- Steel Works Exporters Association
Steelmaking, essential for other industrial sectors, has traditionally been a strategic sector for the CAPV. Some
of the members of SIDEREX epitomise the maximum technical exponent of this industrial activity, as they have
technologically state-of-the-art facilities and use exclusive and almost inimitable production processes.
Sector members include steel producers, first processors, suppliers of raw materials, consumables and spare
parts, as well as engineering firms and manufacturers of machines, equipment and production and transforma-
tion processes, and the important distribution sector.
22
Preclusters
Several sectors, including biosciences, habitat and contract, graphic arts and agro-foods, are currently at
the precluster stage.
Sectoral Diversification Strategies
BIOBASQUE Agency
The Biobasque agency brings together companies whose products and services are basically applicable
in the field of human and animal health, although they also have uses in the industrial, agro-food and envi-
ronmental sectors.
Despite its youth -almost 40% of its members did not exist 5 years ago- this recently formed sector al-
ready holds a leadership position in personalised medicine, regenerative medicine and an increasing role
for sensorics for different applications. The presence of many companies in the entire biopharmaceutical
value chain should also be highlighted.
NANOBASQUE Agency
The Basque Government launched its Nanobasque strategy, designed to develop a new sector in this
field in the Basque economy, in December 2008. The initiative perceives nanosciences and micro-and
nanotechnology as instruments that might prompt the transformation and diversification of the Basque
business environment. The Nanobasque strategy seeks to increase the presence of Basque companies
and research staff in nanotechnology related markets and initiatives internationally.
One of the main assets of the Nanobasque strategy is the CIC NanoGune, the Cooperative Research Cen-
tre, created with the mission of carrying out cutting-edge research work in the nanosciences field in order
to contribute to the competitive development of the Basque Country.
24
Metallic and non-metallic minerals1% Food industry 6%
Textiles and clothing 1%
Wood industry 2%
Paper, printing and graphics 5%
Oil refining 3%
Chemicals 4%
Rubber and plastic7%
Non-metallic industry4%
Metallurgy and metal items29%
Machinery11%
Electrical material 6%
Transport material 8%
Other manufacturing 3%
Electricity, gas and water 10%
Basque Country industrial added value
25
There are over 4,000 subcontractors in the Basque Country, representing almost 30% of Basque industrial
activity. The most representative sector is metal-machining and the core activities of this type of compa-
nies are metal forming, metal machining and casting.
This business fabric responds to the high standards of quality demanded by contractors and nowadays
focuses on highly specialised activities which require a great deal of technical involvement.
It is a highly dynamic sector, linked to the large industrial production groups and increasingly involved in
the technical design of subcontracted production. As a result, we have an increasingly internationalized
sector with growing investment in R&D that forms part of a network of high value suppliers for companies
considering setting up in the Basque Autonomous Community (CAPV).
The competitiveness of the Basque subcontractor product lies in its quality, rapid response time and the
price-quality ratio.
4. Industrial Subcontracting: easy access to highly specialised companies
26
Seaports – Bay of Biscay
Goods traffic (M tonnes), 2008
Port of Bilbao 39,40
Port of Pasajes 4,46
Port of Gijón 19,33
27
Roads
The Basque Country has a modern communications and transport network, facilitating comfortable and
speedy connections with the Spanish State and the rest of Europe. It is located on the international Euro-
Atlantic Lisbon-Stockholm axis and is linked to the rest of Europe via diverse routes.
Railways
The Basque Autonomous Community is linked to the leading Spanish cities by train, via the Spanish Rail
Network (RENFE). There is a direct daily service to cities such as Lisbon and Oporto, Paris and to major
cities in France and Europe from Irún – Hendaya via the French railway network.
Moreover, the Basque Country is currently involved in the most significant railway project to date: the
so-called Basque “Y”, a high speed corridor that will connect the three most important Basque cities in
approximately half an hour using state-of-the-art trains that will also link up with international long distance
lines. These include the present connection at the border town of Irún with the French TGV, which will
enable passengers to travel from the Basque Country to Paris in just over five hours and then connect with
other European cities.
Seaports
Bilbao and Pasajes are the two biggest Basque commercial seaports par excellence. They are important
entry and exit centres for oil products, general merchandise, vehicles and iron and steel goods. Nowadays,
they are facing the 21st century with deep transformations, both of a physical and managerial nature. The
seaports of Bilbao and Pasajes, with a combined traffic volume of about 44 million tonnes per year, are
the centre of most import and export activities and they occupy the top positions among the seaports of
the Spanish State.
www.bilbaoport.es
www.uniportbilbao.es
5. Infrastructure and Logistics
28
Airports
The Basque Country has one of the most complete airport infrastructures in the Spanish State. Each of
the three capitals of the autonomous region has an airport: Loiu in Bilbao, Foronda in Vitoria-Gasteiz and
Hondarribia in San Sebastian, each specializing in different areas, hence complementing one another.
The following airlines regularly operate out of the 3 airports: Aer Lingus, Air Berlin, Air Europa, Air Nostrum,
Air France, Alitalia, Brussels Airlines, Iberia, Lufthansa, TAP Portugal, SAS Scandinavian Airline, Easyjet and
Vueling Airlines. There are direct connections with the leading European capitals from Bilbao Airport: Paris,
London, Brussels, Frankfurt, Munich, Lisbon and Amsterdam.
The gradual increase registered in air traffic and future forecasts have been decisive in determining the
development of an important expansion and improvement investment programme. Bilbao Airport is inter-
national and has the highest volume of passengers in the whole of the Bay of Biscay. Its new terminal was
designed by the renowned architect, Santiago Calatrava. Vitoria Airport, classified as “First Special”, has
the second best perishable goods terminal in Europe after Frankfurt and is the consolidation centre for DHL
air freight for the Iberian Peninsula and North Africa.
Logistics Centre
Every day around 400,000 tonnes of goods are transported in and around the Basque Country. Its strate-
gic location combined with a highly industrialized economy means that the region has one of the highest
traffic levels. The goods transportation and distribution centres help to concentrate all the activities in the
national and international commercial logistics chain.
The Vitoria Transport Centre (CTV), Zaisa and Aparcabisa, located alongside key road, rail, air and sea-
port communications infrastructures, are the three goods interchange centres from where distribution is
integrally managed offering optimum administration of storage operations. The modern facilities provide
storage space, load break-up and consolidation services, internal coordination and transport interchange
as well as functioning as goods reception, information and distribution centres.
Since January 2006, we must add the Arasur logistics platform, located in Alava (Rivabellosa) next to
the Miranda de Ebro road junction, where the A-68 and A-1 motorways and the Madrid-Bilbao railway line
converge.
These three Basque centres, along with other Spanish, Italian and French centres, form part of the Euro-
pean Group of Transport Platforms, which is also known as the “Europlatform” (http://www.freight-village.
com ).
29
SPRILUR
SPRILUR, S.A. was set up in 1995 as a publicly-owned company attached to the Basque Government’s
Department of Industry, Trade and Tourism.
Its main objective is the planning, coordination and design of all the effective reorganization strategies con-
cerning the public supply of land, industrial premises and offices in the Basque Autonomous Community.
This organization ensures the availability of a wide range of industrial premises and offices throughout the
three historical territories: Alava, Bizkaia and Gipuzkoa.
Access to ownership of this type of modular premises is provided at a reasonable and non-speculative
cost. The main advantage of this system lies in its funding, via leasing with a purchase option whereby the
entrepreneur may opt to purchase the property after a period of 9 years.
Business Innovation Centres
The Basque business development agency, SPRI, along with other institutional partners, offers entrepre-
neurs the network of Business Innovation Centres, which accompany and channel entrepreneurial initiatives
to the market, prioritizing innovative and technology-based initiatives and contributing to the creation of an
entrepreneurial culture.
There are 5 BICs in the Basque Country:
BEAZ- http://beaz.bizkaia.net
CEDEMI- http://www.cedemi.net
BIC BERRILAN- http://www.bicberrilan.com
SAIOLAN- http://www.saiolan.com
CEIA- http://www.ceia.es
30
Basque Science, Technology and Innovation Network
Knowledge generation
Technological development
Application
Universities(3)
• UPV - EHU
• Universidad de Mondragón
• Universidad de Deusto
BERC (3) CIB (2)
• BC3• BCAM• BCBL• Fundación Biofísica Bizkaia• DIPC
CIC (7)
• bioGUNE• biomaGUNE• microGUNE• marGUNE• nanoGUNE• tourGUNE• energiGUNE
Technology Platforms - CCTT
Tecnalia (8)• NEIKER• ESI• PATRONIK• INASMET• LABEIN• ROBOTIKER• CIDEMCO• AZTI
IK 4 (9)• CEIT• CIDETEK• GAIKER• TEKNIKER• IDEKO• IKERLAN• VICOMTeca• AZTERLAN• Euve
Other Centres (5)• LEIA• LORTEK• Sociedad de ciencias Aranzadi• CTA• F.T. Energético
OPIs (2)• CADEM• Consorcio ESS
• BERC, Basic and Excellence Research Centres • CIB, Biological Research Centres • CIC, Cooperative Research Centres • CCTT, Technology Centres • OPIs, Public Research Organisations
Health R&D Units• INGEMA• BIOEF• Osakidetza I+D Hospitalaria (7)
Laboratories (5)• CALEB BRETT• ERAIKER• AZARO Fundazioa• INBIOMED• CFTEST
Corporate R&D Units (36)
Technology Parks (4)
• Álava Technology Park • San Sebastián Technology Park
• Bizkaia Technology Park • GARAIA Innovation Pole
Venture Capital (2)
• SGECR • Seed Capital de Bizkaia
31
Over the past 25 years, the Basque Country, and especially the business sector, has multiplied by 20 its
economic effort in R&D activities, standing at about 1.85% of the GDP (2008), well above the Spanish
average (1.35%).
Although R&D expenditure is primarily divided between the public authorities (40.3% in 2008) and compa-
nies (56% in 2008), it is worth highlighting that 81.1% of this expenditure is implemented by the private
sector, leaving a residual 4% for the authorities. In general, these figures are far higher than the Spanish
average, due largely to the relevance of the industrial sector and the awareness of the need for technolo-
gical innovation.
The European Innovation Indicator awards the Basque Country 0.49, hence placing it above the European
average (0.48 - 2008).
The Basque Science, Technology and Innovation Network was founded in 1997 by the Basque Government
to combine the efforts of all public and private entities that try to promote the use of Science, Technology
and Innovation to improve business competitiveness and contribute to the economic and social develop-
ment of the Basque Country.
It is currently made up of around 128 Entities, including Technology and Sectoral Centres, Laboratories,
Business Units, Universities, etc. which, working together, provide different enterprises and sectors with
technological solutions and participate in specific developments.
Members of the Basque Science, Technology and Innovation Network (RVCTI) actively collaborate with the
Basque and European business fabric, participating in European Technological Research and Development
programmes.
The Basque Government has taken a decisive step towards transforming the Basque Country into a Euro-
pean reference for innovation.
Today, agents of the Network are working on the challenge of eco-innovation, which is understood as a
process in which the environment and innovation feed off each other, establishing synergies to increase the
competitiveness of Basque enterprises and acting as a catalyst for on-going environmental improvement.
6. Technological and Innovation Environment
32
Basque Technology Park Network
The Basque Country, pioneer in Spain in the creation of Technology Parks, now has four Technology Parks
in a coordinated Network that is one of the most consolidated networks in Europe with a high growth
potential: Alava Technology Park, Bizkaia Technology Park, San Sebastian Technology Park and the Garaia
Innovation Pole. Their design is based on the universally accepted concept of the definition of a Technology
Park, which combines the location of businesses par excellence, universities and Research and Technology
Transfer Centres with sustainable high quality environments.
The four Technology Parks that form part of the Network aim to:
Set up technologically advanced businesses, providing quality spaces.
Promote the exchange of technology and knowledge.
Promote the creation and development of new technology-based enterprises.
Foster cooperation between companies, technology centres and universities.
Support innovative and technology-based business development.
Boost the internationalization of companies.
The Basque Technology Park Network takes an active part in different local, national and international net-
works: in the Basque Country: Innobasque, Innovanet, i2Basque.; in Spain: APTE (Spanish Association of
Science and Technology Parks , RTT (Technology Transfer Network), IRIS Network (www.rediris.es/rediris
); and internationally: IASP (International Association of Science Parks), Wainova (World Alliance for Innova-
tion), AURP (Association of University Research Parks), World Trade Centers Association.
Bizkaia Technology Park
The Bizkaia Technology Park was founded in 1985 (the first Technology Park in Spain) with the backing
of the Basque public institutions and the aim of promoting the diversification of industry and the transfer
and dissemination of technology and innovation. Located just 10 km outside of Bilbao and 3 km from its
international airport, the Park is an area of high natural and environmental attraction.
This infrastructure will be expanded with two important projects: on one hand, the Science Park of the Uni-
versity of the Basque Country, backed by the University and Bizkaia Technology Park, which will be home
33
to the Spanish headquarters of the European Spallation Neutron Source (ESS). In addition, there is the Left
Bank Technology Park expansion project, located specifically in the municipalities of Abanto and Ortuella.
Bizkaia Technology Park promotes innovation, research and development in its environment through di-
verse activities: creation of inter-business relations and cooperation, promotion of the exchange of tech-
nology and knowledge, spreading of technology and the innovation culture, support for entrepreneurial
activities and the creation of new businesses, as well as the management of subsidies for R&D projects
for technology-based enterprises.
Alava Technology Park
Alava Technology Park, set up in 1992, is a bid by the Basque public authorities to diversify the Basque
business fabric towards businesses of the future. It is located in Vitoria-Gasteiz, the capital of the Basque
Autonomous Community; its excellent geographical location at the heart of an important communications
node with the N-1, N-240, the Vitoria-Gasteiz / Eibar motorway, the dual carriageway to Bilbao and the
airport, make Alava Technology Park a strategic place for the installation and development of businesses.
It has state-of-the-art urban development, with low density construction, which enables a landscaped and
clean environment to be combined with innovative and technological business development.
Alava Technology Park has diverse internationally renowned technology centres and R&D units which act as
technology transfer agents and offer businesses a wide range of services, for example:
- the Aeronautical Technology Centre (http://www.ctaero.com )
- Leia, the Technological Development Centre, (http://www.leia.es )
- Neiker, the Basque Institute for Agricultural Research and Development, (http://www.neiker.net )
- EUVE (European Virtual Engineering) Technology Centre
- CIC energiGUNE, Centre for Cooperative Research in Energy.
Furthermore, the Technology Park is home to the Alava Businesses an Innovation Centre, CEIA, and the
Arkaute Agrifood Campus is also located in the Park.
34
San Sebastián Technology Park
Set up in 1994, thanks to the impetus of the Basque public authorities, and inaugurated in 1997, the San
Sebastian Technology Park is located in Miramón (San Sebastian), a few kilometres from the border with
France. Its main objective is to contribute to socio-economic development and hence increase the life
quality of the people living within its environment. The strategy is based on bringing together the economic
agents that have a bearing on the generation of technologically advanced projects, such as universities,
technological centres and businesses, providing them with appropriate locations and infrastructures.
The Technology Park has initiated an expansion project in the nearby town of Hernani. It is currently home
to leading technology centres of international prestige as well as three Cooperative Research Centres:
- CIC biomaGUNE, centre for cooperative research in biomaterials has the most powerful molecular ima-
ging laboratory in Europe.
- CIC tourGUNE, scientific-technological infrastructure set up in the Basque Country for the generation and
exchange of knowledge excellence in the area of tourism and mobility.
- CIC microGUNE, microtechnologies cooperative research centre.
Garaia Innovation Pole
Set up in 2007, it is located in Arrasate-Mondragón, Gipuzkoa. Unlike the other three Technology Parks
in the network, the GARAIA Innovation Pole came about as a result of the private initiative of Mondragon
Cooperative Corporation, with the backing of the scientific knowledge of Mondragon University, the inves-
tigation resources of Ikerlan Technology Centre and the support of public institutions.
Garaia Innovation Pole belongs to an environment that has traditionally and still lies in the avant-garde of
the business world, where the headquarters of some of the most important industrial groups in Spain are
located. Its aim is to foster cooperation and interrelations between organizations, providing them with an
infrastructure that fosters the exchange of knowledge and its final profitability. For this purpose, it has set
up innovative cooperation systems which foster innovation, competitiveness and the sustainable develop-
ment of each project.
Garaia Innovation Pole promotes research and the development of projects in sectors such as energy,
materials technology, business management, electronics, micro-electronics and nanotechnology, ICTs and
surface finishing machines and processes.
35
EXHIBITIONS AND CONFERENCES
Bilbao Exhibition Centre - BEC (Bilbao)
This is an initiative designed to offer the best possible service to exhibitors, visitors and the general public,
and is a modern, convenient and functional exhibition site, with an exhibition surface area of 150,000
square metres. Bilbao Exhibition Centre is more than just an exhibition site and its configuration offers a
wide range of formats for the organization of all types of events.
Palacio Euskalduna - Conference and Performing Arts Centre (Bilbao)
The Euskalduna Conference and Performing Arts Centre is a unique building, one of the flagship projects of
the new Bilbao of the 21st century. It is a 53,000 square metre multi-purpose centre, located in the centre
of Bilbao, designed to host many different kinds of economic-business, institutional, social and cultural
events. In 2003 it received the Award for the Best Conference Centre in the World from the International As-
sociation of Conference Centres. This is the highest award that can be received by a Conference Centre.
Europa Conference and Exhibition Centre (Vitoria)
Due to its technical and construction characteristics, the Europa Conference and Exhibition Centre has
been designed to host conferences and meetings with a capacity for between 200 and 700 people.
Kursaal Conference Centre (San Sebastian)
A spectacular architectural masterpiece by Rafael Moneo, facing the Bay of Biscay, and the epicentre of
the city’s cultural and conference activity, which hosts 300 events and receives 600,000 visitors each
year.
36
37
ESS- Bilbao, one of the largest European scientific infrastructures
The European Spallation Source (ESS) is a joint European project like other large scientific infrastructures
such as CERN in Geneva and will be a multi-science facility for advanced research and industrial develop-
ment. The ESS can be compared to a large microscope that uses neutrons to analyse different materials,
and high-precision instruments mean that detailed research can be carried out under realistic conditions.
The agreement between Spain and Sweden, backing a joint project, has turned into one single candidature
with two headquarters; a central one in Lund and another complementary one in Bilbao. The latter will
be one of the biggest scientific installations in southern Europe and will quickly help to boost the local
economy.
The sub-headquarters in Bilbao is expected to be operational in 2011 and will employ about 80 people.
It will house three main facilities:
- A test laboratory which will be the main centre for R&D and ESS testing
- An accelerator technology centre for the design, development and testing of accelerator components
- A software development centre and remote access point with Lund
The ESS will open new doors for researchers over a wide area of areas including chemistry, nanotechno-
logy, energy, the environment, materials engineering, food technology, biosciences, pharmaceuticals, IT
and archaeology.
The strength of the Spanish candidacy has always been that it has laid out an R&D strategy as the key
component of the project, based on strong commitment to collaboration with the international scientific
community in the most important centres of excellence in the world.
The R&D programme is a set of global, international, coherent actions, based on three key aspects:
- A network of collaborators with top-level experience in construction of large scientific infrastructures.
- A clear definition of the research lines to be followed that will help contribute best towards capitalising
on the experience of the collaborators, with the aim of achieving a design update of the Neutron Source
that will be built in Lund.
- The signing of international cooperation agreements with the most important research centres worldwi-
de, to achieve the exchange of knowledge with the scientific community.
7. Outstanding Projects
38
Marine energy
Wave energy: Biscay Marine Energy Platform (BIMEP)
The BIMEP –Biscay Marine Energy Platform- is a marine facility for the research, demonstration and ex-
ploitation of systems for capturing energy from waves out at sea. The characteristics of the Bay of Biscay
create exceptionally good conditions for testing the efficiency of new mechanisms and technologies for
harnessing wave energy, and the technology is being developed by companies from all over Europe.
The BIMEP has the latest underwater systems with a connection to the electricity grid on land and a whole
telecommunications system for systematically collecting and analysing data from the systems that are
being tested at sea.
- Infrastructure for researching and exploiting systems for capturing energy from waves at sea. With con-
nection to the electricity grid on land
- It aspires to be a flagship research project on marine energy
- Total investment of 20 million euros
- Operational in 2011
- Located in Arminza (Bizkaia)
Wave energy plant in Mutriku
Taking advantage of the construction of the new sea wall in Mutriku, a plant to use wave energy has
been incorporated into the wall, using the technology of an oscillating water column device. This plant,
producing 300 kW of energy using 16 turbo-generating groups, is the first with multiturbine configuration
in the world. It occupies 100 metres of the sea wall and is close to being finished and connected to the
electricity grid.
39
Electric vehicle. Agreements with Repsol and Mercedes-Benz
The transport sector has become the second largest consumer of energy in the Basque Country over the
last few years, after the industrial sector. It is also a sector in which practically all the energy that it requires
comes from petroleum, in particular road transport.
The Basque Energy Board (EVE) therefore, in accordance with the policies and priorities established by the
Basque Government’s Department of Industry, Innovation, Trade and Tourism, has laid out a strategy for
boosting the introduction of electric vehicles in the CAPV.
The agreement signed between the Basque Energy Board (part of the Basque Government) and Repsol
in October 2009 aims to focus on the design and implantation of a basic network of recharge points for
electrical vehicles in the Basque Country.
Initial phase: June 2010 (analysis of battery recharging technologies and agreement on the most appro-
priate sites).
Second phase: second half of 2010 (incorporation of a company to construct and run the recharging
facilities).
Third phase: 2011 (deployment of the recharge network).
A second agreement has been signed between the EVE and Mercedes-Benz (in December 2009) and it is
aimed at the manufacture of electric vans at the plant in Vitoria-Gasteiz.
- Vehicle to be produced: van with electric motor and battery with a range of 130 Km.
- Delivery of the first vans: October 2010.
- Also involved are the Automotive Cluster of the Basque Country (ACICAE) and various Basque technology
centres.
40
Personal Taxes
Income Tax (for residents)
Income Tax (for non-residents)
Special tax regime for displaced workers (inpatriates)
This is a special optional tax regime applicable to those non-resident individuals who as a consequence of a work contract move to Spanish territory to carry out a particular job they are specially qualified for, re-lated directly and mainly with the activity of research and development, and who acquire the status of fiscal residents in the Basque Country.
This tax regime sets Income Tax according to the regulations for Inco-me Tax for Non-Residents during the tax period in which they change residence and the five years after. Therefore, during this period a tax rate of 24% is applied, when the usual tax rate for Income Tax means a progressive rate with a maximum that could be as much as 45%.
Wealth Tax
Inheritance and Donations Tax
Corporate Tax
The general tax rate for Corporate Tax in Spain is 30%, whereas in the Basque Country it is 28%.
41
The tax and financing system of the Basque Country, based on historical regional rights, has its own indi-
vidual characteristics.
Its uniqueness lies in the Statute of Autonomy, which states that relations of tax and finance matters bet-
ween the Spanish State and the Basque Country should be regulated by the traditional regional system of
the Special Economic Agreement or Conventions.
In September 2008, the Court of Luxembourg ratified the full validity of the Special Economic Agreement of
the Basque Country and the capacity for the region to fix its own taxes, even though they may be different
from those set in the rest of Spain.
The Economic Agreement rules that the Basque Country has its own tax collecting system with the legisla-
tive and administrative capability that is normally held by the tax authorities of a state. It is the Agreement
itself that contains all the appropriate rules for fiscal harmonisation that guarantee the even development
of the different tax systems of the Basque Country and the rest of Spain.
The Economic Agreement regulates financial relations with the State Administration, which is ruled by the
following general principles:
1. Fiscal and financial autonomy for the institutions of the Basque Country.
2. Coordination and collaboration with the State in questions of budgetary stability.
3. Contribution by the Basque Country to any State expenditure that the Autonomous Region is not respon-
sible for.
8. Tax and Self-financing Systems: Fiscal Autonomy
42
Foreign banks in the Basque Country
Company Country of Origin
Fortis Bank Netherlands
Banco Espirito Santo Portugal
Barclays Bank United Kingdom
Citibank U.S.A.
Caisse Regionale Credit Agricole Mut. Pyrenees France
Deutsche Bank Germany
Lloyds TSB Bank United Kingdom
BNP Paribas France
Types of Employment Contract
CONTRACTS FOR A SPECIFIC DURATION
Contract for project work or specific services Temporary contract to cover production overload Contract to substitute workers entitled to return to their job
TRAINING CONTRACTS
Work experience contract Vocational training contract
CONTRACT TO PROMOTE HIRING FOR AN INDEFINTE PERIOD
Part-time contract
Foreign companies in the Basque Country
Labour Costs
Monthly labour cost (€) IV-2009
Total Industry Construction Services
BASQUE COUNTRY 3.078,3 3.476,5 3.208,1 2.919,6
SPAIN 2.649,1 2.969,6 2.737,4 2.567,1
PRODUCTIVITY per employed person (EU-27 = 100)
1997 2000 2003 2006 2008
BASQUE COUNTRY 134,9 132,1 126,7 130,1 132,0
SPAIN 108,2 103,6 103,6 102,0 104,8
43
Grants
Aid in the Basque Country
The Sociedad para la Promoción y la Reconversión Industrial, S.A. (SPRI, S.A.) is the business development
agency of the Autonomous Region of the Basque Country, and it is under the aegis of the Ministry of Indus-
try, Innovation, Trade and Tourism of the Basque Government. Its main aims are to promote the country
as an attractive place to invest in, and the promotion of business dealings between foreign and Basque
companies, matters in which it has great experience after being operational more than 25 years. It consti-
tutes a gateway to a wide variety of financial backing schemes, both public and private, for the promotion
of projects for starting businesses, with attractive and competitive deals for companies.
A wide range of institutional support packages for developing or setting up entrepreneurial projects has
always indeed existed in the Basque Country, making up a competitive promotion packet that includes:
- Entrepreneurship: Financing for new innovative entrepreneurial projects
- Financial aid for investment: fostering the modernisation of production equipment, investments in indus-
trial machinery and fixed assets, etc.
- Management: assistance with finding financial advisers
- ICT: programmes directed towards helping with the incorporation of ICT (Information and Communication
Technologies) in companies
- Innovation: promoting innovative projects in companies at management, market and organisational level
- Technology: support for R&D and innovation projects
- Internationalisation:
- Of Basque companies towards external markets: Individualised services for each company (carrying
out market surveys, support for entry into a market, temporary location in SPRI offices abroad, su-
pport for commercial and production set-up in foreign markets, etc.)
- Invest in the Basque Country: Support service to attract investment, specially tailored to any project
intending to invest in the Basque Country.
- Aid for managerial training
- Aid for employment
- Financial support in order to adapt the financial structure of SMEs
- Financing (venture capital, participative loans, pools, development capital companies, business angels,
private investment banking)
9. Investment Support
44
Spanish state grants
CDTI (Centre for Industrial Technological Development) - Ministry of Science and Innovation (http://www.
cdti.es )
ICO (Official Credit Institute) - Ministry of Economy and Treasury (http://www.ico.es )
INVEST IN SPAIN- Ministry of Industry, Tourism and Trade (http://www.investinspain.org )
Ministry of Employment and Social Affairs
Grants from the European Union
European Commission (http://ec.europa.eu )
European Investment Bank (http://www.eib.org )
European Investment Fund (http://www.eif.europa.eu )
Foreign Investment: legislation
Legislation about foreign investment in general terms can be considered very liberal, although it is so-
metimes subject to regulation and involves a certain amount of red tape, as there is an administrative
requirement for the ex-post declaration of investments, for administrative, economic and statistical pur-
poses. However, in certain cases of investments proceeding from or destined for countries qualified as
tax havens, in addition to the aforementioned administrative paperwork you are required to make another
declaration prior to the payment of the investment.
Investments made by foreign companies in the Basque Country
The Basque Country is an attractive region for foreign investment. Its tradition of industry and its know-how
combine with its strategic location, its communications network, its business framework for highly specia-
lised subcontracting and it network of energy and technology infrastructures. There are many transnational
companies that have opted for the Basque Country for many years now, with the greatest degree of sa-
tisfaction, making them the best ambassadors of the Basque Country to the rest of the world. However,
45
during the 1990s and after, both trade and the international financial flows have undergone cyclical evo-
lutions, combining periods of great expansion and others of slight recession, which have had their logical
effect on foreign investment coming into the Basque Country.
For the most part, this investment comes from other countries in the European Union. There are currently
more than 700 enterprises located in the Basque Country with an important or a controlling stake held by
foreign companies..
Labour costs and productivity
Labour costs in the Basque Country reflect a high standard of living and are the result of one of the highest
rates of productivity in Europe.
46
Legal Formats
TYPES OF NATURAL PERSON BUSINESSES
Sole Trader Co-ownership Partnership Company
TYPES OF LEGAL PERSON BUSINESSES
Traditional companies Worker-owned company Professional companies
Traditional Companies
Limited Liability Company Public Limited Company New Enterprise Limited Company
Minimum 1 partner Minimum 1 partner Maximum 5 individuals
Minimum contribution of €3,006 Minimum contribution of €60,101.21 Minimum contribution of €3,006 and maximum contribution of €20,202
Worker-Owned Company
Worker-Owned Limited Liability Company Worker-Owned Public Limited Company Cooperative
Minimum number of partners 3 Minimum number of partners 3 Minimum number of partners 3
Minimum contribution of €3,006 Minimum contribution of €60,101.21 3.006 €
Profesional Company
Minimum number of partners 2
€3,006 if a Limited Liability Company / €60,101.21 if a PLC
47
Steps to take
Commercial register:
You must apply to the Central Commercial Register (Registro Mercantil Central) for a certificate declaring
the non-existence of any other company with the same name as that which you intend to set up.
Financial institutions:
Capital outlay for the company must be made, either in cash or against property.
Notary:
The deeds of incorporation of the company must be signed before a notary.
Regional government authorities:
It is necessary to take the following administrative steps in the Department of the Inland Revenue of the
Regional Government (Departamento de Hacienda de la Diputación Foral):
i.- Application for a provisional Fiscal Identity Number.
ii.- Declaration for the Census.
iii.- Payment of 1% tax on the capital.
Provincial commercial register:
You must then present the deeds of incorporation of the company in the Provincial Commercial Register.
Regional government authorities:
Next steps in the Regional Government Authorities
Once the company has been registered, you will need to apply to the Department of the Inland Revenue of
the Regional Government for the following:
• Definitive Fiscal Identity Number
• Registration for the Economic Activities Tax (IAE)
10. Incorporating a company
48
Administration:
In the Department of Labour of the Basque Government (Departamento de Trabajo del Gobierno Vasco)
and in the Social Security (Seguridad Social)
You may now proceed to communicate the opening of the company’s offices in the Department of Labour
of the Basque Government, register the company and its employees, if there are any, with the Social Secu-
rity office, and also insure them for occupational diseases and accidents at work.
Licences:
Steps to take in the municipal council and the Basque Government
Each type of economic activity requires different specific steps:
At municipal council level:
- Municipal Works Licence
- Municipal Opening Licence
At Basque Government level:
- There are many types of company activity
- Each activity requires its own different paperwork, and it is not
possible to list them all.
However, if you contact us, we will provide this information.
ICT
Two actions are important in the area of ICT
• To reserve a domain on the Internet
• To incorporate ICTs into the company.
Administrative management
Documents required for administrative management
Any managerial activity requires that you possess the following documents:
• A Registration book and a Visitors book
• Implementation of a General Accounting Plan for SMEs.
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Legal formats
Types of Natural Person Businesses:
SOLE TRADER
CO-OWNERSHIP
PARTNERSHIP COMPANY
In all 3 cases, there is no minimum contribution, and responsibility to others is unlimited.
Types of Legal Person Businesses:
TRADITIONAL COMPANIES
WORKER-OWNED COMPANY
PROFESSIONAL COMPANIES
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51
11. SPRI Network Abroad
Algeria
Austria
Bulgaria
Canada
Croatia
Denmark
Egypt
Estonia (Baltic states)
Finland (Scandinavian states)
France
Germany
Hungary
Ireland
Italy
Ivory Coast
Japan
Korea
Malaysia and Indonesia
Morocco
Netherlands (Benelux)
Philippines
Portugal
Romania
Senegal
Serbia (Balkan states)
Singapore
South Africa
Sweden
Thailand
Tunisia
Ukraine
United Arab Emirates (incl. Qatar)
United Kingdom
Venezuela
Vietnam
Argentina
Brazil
Chile
China
Cuba
Czech Republic
India
Mexico
Poland - Warsaw
Poland - Wroclaw
Russia
Turkey
U.S.A.
Antennas
SPRI offices abroad
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53
Innobasque, the Basque Agency for Innovation, is a private, not-for-profit company which was created to
coordinate and boost innovation in the Basque Country in all areas, and to foment entrepreneurial spirit
and creativity. Performing projects to Europeanise its own R&D projects has meant that during the Sixth
Framework Programme of the European Commission, the return obtained by Basque companies has been
41% higher than shown in the Fifth Framework Programme.
Ikerbasque, the Basque Foundation for Science, is designed to reinforce the scientific system of the
Basque Country by attracting scientists from other countries and by creating Research Centres of Exce-
llence.
Orkestra, the Basque Institute of Competitiveness belonging to the Deusto Foundation, created in 2006,
is designed to support the activity of the public administration, socio-economic agents and all the Universi-
ties of the Basque Country in areas related to competitiveness.
Orkestra is the result of the convergence of various strategic efforts resulting in an instrument of “coopeti-
tive partnership” at the service of competitiveness and prosperity in the Basque Country. The Institute was
founded to identify the real routes to competitiveness and the wellbeing demanded by the changing and
innovative society of the Basque Country, focussing and accelerating the developments of public policies
and private business agendas through the synergic development of three essential functions: research,
interaction and training.
12. Other bodies to boost competitiveness
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55
13. Websites
Education
University of the Basque Country - Euskal Herriko
Univertsitatea
www.ehu.es
University of Mondragón
www.mondragon.edu
University of Deusto.
www.deusto.es
University of Navarra
www.unav.es
German School of Bilbao - Deutsche Schule Bilbao
www.dsbilbao.org
French School of Bilbao - Lycée Français de Bilbao
www.c-francaisbilbao.com
American School of Bilbao - Colegio Americano
www.asob.es
St. George English School of Bilbao
www.st-george.com
Quality of life
Basque Tourism
http://www.turismoa.euskadi.net
Guggenheim Museum Bilbao
http://www.guggenheim-bilbao.es
Basque Golf Federation
http://www.fvgolf.com
San Sebastián Film Festival
http://www.sansebastianfestival.com
Basque Meteorology Agency
http://www.euskalmet.euskadi.net
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GAIA- Electronics, Information Technology and Tele-
communications Cluster Association of the Basque
Country
http://www.gaia.es
HEGAN- Aeronautics and Space Cluster of the Bas-
que Country
http://www.hegan.com
UNIPORT- Port of Bilbao
http://www.uniportbilbao.es
MLC-ITS- Mobility and Logistics Cluster
http://www.clustertil.com
ENBOR (HABIC)- Furniture and Accessory Manufac-
turer Association of the Basque Country
http://www.enbor.com
AGRAGEX- Spanish Manufacturers/ Exporters As-
sociation of Agricultural Machinery, Components,
Irrigation Systems, Livestock and Post Harvesting
Equipment
http://www.agragex.es
AMT- Association of Machine Components/ Acces-
sories Manufacturers
http://www.amt.es
Sectors
ACEDE- Basque Country Association of the Home
Appliances Industry
http://www.acede.es
ACICAE- Automotive Cluster of the Basque Country
http://www.acicae.es
ACLIMA- Environmental Industry Cluster of the Bas-
que Country
http://www.aclima.net
AFM- Spanish Association of Machine Tool Manufac-
turers
http://www.afm.es
CLUSTER ENERGÍA- Association Cluster of Energy
and Basque Energy Board (EVE)
http://www.clusterenergia.com
http://www.eve.es
CLUSPAP- Basque Paper Cluster
http://www.clusterpapel.com
EIKEN- Basque Audiovisual Cluster
http://wwweikencluster.com
FORO MARITIMO VASCO- Maritime Industries Clus-
ter (Shipbuilding)
http://www.foromaritimovasco.com/
http://adimde.es
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CIC BiomaGUNE- Centre for Cooperative Research
in Biomaterials
http://www.cicbiomagune.com
CIC BioGUNE- Centre for Cooperative Research in
Biosciences
http://www.cicbiogune.com
CIC MarGUNE- Cooperative Research Centre in High
Performance Manufacturing
http://www.margune.org
CIC MicroGUNE- Microtechnologies Cooperative Re-
search Centre
http://www.cicmicrogune.es
CIC TourGUNE- Centre for Cooperative Research in
Tourism
http://www.tourgune.org
CIC EnergiGUNE- Energy Cooperative Research
Centre
http://www.cicenergigune.es
AVIC- Basque Association of Engineering and Con-
sultancy Companies
http://www.avic.es
FLUIDEX- Spanish Association of Fluid Handling
Equipment Exporters
http://www.fluidex.es
FUNDIGEX- Castings Exporters Association of
Spain
http://www.fundigex.es
HERRAMEX- Hand Tool Manufacturers Association
http://www.herramex.es
MAFEX- Spanish Association of Manufacturers and
Exporters of Equipment and Services for the Rai-
lway Industry
http://www.mafex.es
SIDEREX- Steel Works Exporters Association
http://www.siderex.es
BIOBASQUE Agency
http://www.biobasque.org
NANOBASQUE Agency
http://www.nanobasque.eu
CIC NanoGUNE- Nanoscience Cooperative Research
Centre
http://www.nanogune.eu
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Alava Technology Park
http://www.pt-alava.es
San Sebastián Technology Park
http://www.mirmon.es
Garaia Innovation Pole
http://www.pologaraia.es
Innobasque (Basque Innovation Agency)
http://www.innobasque.com
Ikerbasque
http://www.ikerbasque.net
Orkestra (Basque Competitiveness Institute)
http://www.orkestra.deusto.es
Bilbao Exhibition Centre
http://www.bilbaoexhibitioncentre.com
Palacio Euskalduna - Conference and Performing
Arts Centre
http://www.euskalduna.net
Europa Conference and Exhibition Centre
http://www.vitoria-gasteiz.org/congresos
Kursaal Conference Centre
http://www.kursaal.com.es
infrastructures
Basque Railways - Euskotren
http://www.euskotren.es
Narrow Gauge Railways - Ferrocarriles de Vía Es-
trecha
http://www.feve.es
Spanish National Railway Network - Red Nacional de
Ferrocarriles Españoles
http://www.renfe.es
Port of Bilbao
www.bilbaoport.es
Port of Pasajes (Pasaia)
http://www.puertopasajes.net
Airports
http://www.aena.es
Logistics Platforms
http://www.ctvitoria.com
http://www.zaisa.com
http://www.aparkabisa.com
http://www.arasur.es
Basque Technology Park Network
http://www.rpte.net
Bizkaia Technology Park
http://www.parque-tecnologico.net
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SAIOLAN
http://www.saiolan.com
CEIA
http://www.ceia.es
Diputación Foral de Bizkaia – Bizkaia Regional Go-
vernment
www.bizkaia.net
Diputación Foral de Gipuzkoa – Gipuzkoa Regional
Government
www.gipuzkoa.net
Diputación Foral de Álava – Álava Regional Gover-
nment
www.alava.net
Bilbao Chamber of Commerce
www.camarabilbao.com
Gipuzkoa Chamber of Commerce
www.camaragipuzkoa.com
Álava Chamber of Commerce
www.camaradealava.com
Institutions
BASQUE GOVERNMENT
http://www.ejgv.euskadi.net
Basque Public Administrations Portal
http://www.euskadi.net
SPRI, S.A.
https://www.spri.es
SGCR, S.A.
http://www.gestioncapitalriesgo.com
SPRILUR, S.A.
http://www.sprilur.es
Basque Energy Board - Ente Vasco de la Energía
(EVE, S.A.)
http://www.eve.es
IHOBE (Public Company for Environmental Sustaina-
bility)
http://www.ihobe.net
Business Innovation Centres- BICs
BEAZ
http://beaz.bizkaia.net
CEDEMI
http://www.cedemi.net
BIC BERRILAN
http://www.bicberrilan.com
