Spain: your partner in Europe
February 2016
Business Opportunities
Global Market Access from an International Economy
Investment Framework
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1. Spain: a highly internationalized economy
2. Global Market Access
3. Macroeconomic Situation and Structural Reforms
4. Business Climate
Infrastructure and Technology
Incentives and taxes
Human capital: Productivity, Skilled Labour Force and Competitive Costs
Quality of life: Expat setting up
5. Business Opportunities
6. ICEX / Invest in Spain
INDEX
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1. Spain: a highly internationalized economy
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Spain is the world’s 13th-largest economy and the 5th-largest economy in the EU:
GDP worth 1.4 trillion USD
1. Spain: a highly internationalized economy
GDP comparison of major economic regions, USD billions
Germany: 3,860*
UK: 2,945
Spain: 1,407
France: 2,847
Italy: 2,148
EU28: 18,495
USA: 17,419
Mexico: 1,283
Canada: 1,789
NAFTA:20,491
China*: 10,380
Brazil: 2,353
Russia*: 1,857
India: 2,050
BRICs: 16,640
NIEs: 3,807
ASEAN-5: 2,060
Asia: 13,435
Japan: 4,616
Australia: 1,444
Source: IMF, 2015. Data Referred to 2014 * Estimated Data
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Source: IMF, WEO Database (April 2014 edition) 2013 Data; WTO 2014, 2013 Data; World Tourism Organization (Highlights, 2014 Edition.) 2013 Data, UNCTAD (WIR 2015) 2014 Data. (*)
UAE Tourist Nº Dubai only. FDI Inward: (3) Hong Kong, (8) Singapore. FDI Outward: (5) Hong Kong. Tourism Income: (5) Macao, (10) Hong Kong. Tourist Nº: (10) Malaysia, (11) Hong Kong.
Spain in the World Economy
Spain, Key Player in the World Economy Spain in the World
GDP GDP
per capita Population
Trade in Goods.
Billions $
Trade in Services.
Billions $
Tourism FDI Stock. Billions $
Income $ Tourist Nº Inward Outward
RK Country Billion $ RK unit $ RK Millions RK Exports RK Imports RK Exports RK Imports RK Billions RK Millions RK Billions RK Billions
1 USA 16,799.7 9 53,101 3 316.4 2 1,579.6 1 2,329.1 1 662.0 1 431.5 1 139.6 1 69.8 1 5,409.9 1 6,318.6
2 China 9,181.4 84 6,747 1 1,360.8 1 2,209.0 2 1,950.0 5 204.7 2 329.4 4 51.7 3 55.686 4 1,085.3 9 729.6
3 Japan 4,901.5 24 38,491 10 127.3 4 715.1 4 833.2 8 145.4 6 162.3 21 14.9 24 10.4 30 170.6 6 1,193.1
4 Germany 3,636.0 18 44,999 16 80.8 3 1,452.7 3 1,188.9 3 286.2 3 316.8 8 41.2 6 31.5 7 743.5 3 1,583.3
5 France 2,737.4 20 43,000 23 63.7 6 579.7 5 681.0 4 236.3 4 188.5 3 56.1 -- -- 8 729.1 5 1,279.1
6 UK 2,535.8 23 39,567 22 64.1 8 541.6 6 655.3 2 292.7 5 174.0 9 40.6 7 31.2 2 1,662.9 2 1,584.1
7 Brazil 2,242.9 62 11,311 5 198.3 22 242.2 22 250.4 31 37.5 17 83.3 39 6.7 -- -- 6 754.8 19 316.3
8 Russia 2,118.0 51 14,819 9 142.9 10 523.3 16 343.0 21 64.8 10 123.0 27 12.0 8 28.4 15 378.5 17 431.9
9 Italy 2,072.0 27 34,715 24 59.7 11 517.7 10 477.4 14 110.2 12 107.3 6 43.9 4 47.7 16 373.7 14 548.4
10 India 1,870.7 144 1,505 2 1,243.3 19 313.2 12 466.0 6 150.9 9 124.6 16 18.4 37 6.8 21 252.3 30 129.6
11 Canada 1,825.1 10 51,990 36 35.1 13 458.4 11 474.3 17 78.2 14 104.9 17 17.7 16 16.6 12 631.3 10 714.6
12 Australia 1,505.3 5 64,863 52 23.2 21 252.7 23 242.1 25 52.2 19 62.2 11 31.0 38 6.4 13 564.6 16 443.5
13 Spain 1,358.7 28 29,150 28 46.6 18 316.5 17 338.9 9 145.3 16 92.2 2 60.4 2 60.7 9 721.9 11 674.0
14 Mexico 1,258.5 66 10,630 11 118.4 15 380.2 14 391.0 40 19.6 34 28.8 23 13.8 14 23.7 18 338.0 29 131.2
15 Korea 1,221.8 33 24,329 26 50.2 7 559.6 9 515.6 13 111.8 13 105.9 22 14.3 21 12.2 27 182.0 21 258.6
16 Indonesia 870.3 116 3,510 4 248.0 27 183.3 27 187.3 36 21.7 31 34.3 31 9.3 31 8.8 20 253.1 50 24.1
17 Turkey 827.2 65 10,815 19 76.5 32 151.8 19 251.6 27 46.3 37 22.2 12 28.0 5 37.8 31 168.6 41 40.1
18 Netherlands 800.0 13 47,634 63 16.8 5 671.9 8 589.8 7 146.7 8 127.4 20 15.6 20 12.8 11 664.4 8 985.3
19 Saudi Arabia 745.3 31 24,847 43 30.0 17 375.9 29 168.2 52 11.1 25 51.7 33 7.7 19 13.213 23 215.9 37 44.7
20 Switzerland 650.8 4 81,324 93 8.0 23 229.2 26 200.9 16 93.4 24 52.8 18 16.5 30 9.0 10 681.8 7 1,130.6
21 Sweden 557.9 7 57,909 85 9.6 29 167.7 30 159.8 19 75.0 22 57.4 28 11.5 -- -- 19 321.1 18 379.5
22 Poland 516.1 56 13,394 33 38.5 26 202.0 25 205.1 29 40.1 32 33.0 29 10.9 17 15.8 22 245.2 35 65.2
23 Norway 511.3 2 100,318 114 5.1 31 154.3 36 89.8 28 40.5 26 49.4 42 5.7 42 4.7 26 185.6 23 213.9
24 Belgium 506.6 17 45,384 71 11.2 12 469.4 13 450.7 15 106.2 15 97.5 24 13.5 34 7.6 14 525.6 15 450.2
25 Taiwan 489.2 38 20,930 51 23.4 20 305.4 18 269.9 26 51.4 30 41.7 25 12.7 33 8.0 39 115.6 20 258.8
26 Argentina 488.2 61 11,766 32 41.5 46 81.7 43 73.7 45 14.2 42 19.1 49 4.4 40 5.6 40 114.1 44 35.9
27 Austria 415.4 11 48,957 90 8.5 28 174.7 28 182.2 22 64.6 29 44.6 14 20.1 12 24.8 28 180.8 22 223.2
28 UAE (*) 396.2 19 43,876 88 9.0 16 379.0 20 251.0 43 16.4 18 70.0 -- -- 26 10.0 39 105.5 33 66.3
29 Thailand 387.2 93 5,674 20 68.2 24 228.5 21 250.7 23 58.6 23 55.0 7 42.1 9 26.5 25 199.3 34 65.8
30 Colombia 381.8 73 8,098 27 47.2 55 58.8 49 59.4 67 5.7 56 11.1 61 2.5 57 2.3 34 141.7 39 43.1
Spain is the 10th-largest exporter of commercial services worldwide, 4th in the EU, and
the 18th-ranked exporter of merchandise trade.
Source: World Trade Organization (WTO), 2015.
Commercial Services Exports USD Millions
1. Spain: a highly internationalized economy
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Merchandise Trade Exports USD Millions
Source: World Trade Organization (WTO), 2015.
2014 2014/2013%
1 United States 687,605 3.73%
2 United Kingdom 337,217 7.95%
3 France 267,104 5.28%
4 Germany 266,244 4.27%
5 China 232,456 12.40%
6 Netherlands 186,587 5.47%
7 Japan 158,081 19.17%
8 India 155,627 5.02%
9 Singapore 140,140 2.29%
10 Spain 133,708 4.30%
World 4,939,570 4.90%
2014 2014/2013%
1 China 2,342,306 6.0%
2 United States 1,620,532 2.6%
3 Germany 1,507,594 3.8%
4 Japan 683,846 -4.4%
5 Netherlands 672,127 0.1%
6 France 582,590 0.3%
7 Republic of Korea 572,664 2.3%
8 Italy 528,738 2.0%
9 Hong Kong 524,065 -2.1%
10 United Kingdom 505,841 -6.5%
…. … …
18 Spain 324,863 2.2%
World 19,002,000 0.3%
1. Spain: a highly internationalized economy
Spain, strong and sustainable external sector performance
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Spanish exports of goods and services reached 32.5% of GDP in 2014.
Spanish exports of goods and services related to GDP in 2014 were higher than in the United Kingdom,
Italy or France.
A competitive combination: technology, innovation, productivity and lower Unit Labour Costs have lead to a
competitiveness-based expansion of exports.
Source: Eurostat & World Bank
EXPORTS OF GOODS AND SEVICES IN % OF THE GDP
32,5
44,8 46,0 45,5 45,7
28,7
29,6
28,4 25,0
30,0
35,0
40,0
45,0
50,0
2011 2012 2013 2014
Spain Germany France Italy United Kingdom
1. Spain: a highly internationalized economy
Spanish and foreign companies established in Spain focus on EU markets, but they are
increasing their exports and business towards Latin America, USA, Asia, Russia, Africa
and the Middle East using Spain as a platform for Global Business.
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In 2014, exports to the EU
accounted for 63.4% of total exports,
up from 62.6% in 2013.
In the first semester of 2015, exports
to the European Union accounted
for 64.8% of the total, up from
63.6% in the same period of 2014.
In 2014, our exports to non-EU countries have increased their share in Spanish
exports from 27.5% of the total in 2005 to 36.6% in 2014, despite the economic
weakening in Latin America and in some African countries:
Exports to North America increased by 22.0% year-on-year (U.S. by 22.6% and Canada by
18.6%)
To Asia by 9.0%, (remarkably Taiwan 109.4%, South Korea 83.6%, Japan 18.4% and
China 3.5%)
Source: Secretariat of State for Trade, 2015.
Tourism:
Spain is the 2nd country worldwide in receipts and the 1st in Europe.
Spain ranks 3rd in tourist arrivals worldwide and 2nd in Europe.
1. Spain: a highly internationalized economy
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INTERNATIONAL TOURIST ARRIVALS INTERNATIONAL TOURISM RECEIPTS
Mill. people
Source: WTO Tourism Highlights, 2015
Bill USD
Source: WTO Tourism Highlights, 2015
Spain received more than 65 million tourists in 2014
Source: IET/ Tourspain
Country 2014 % 2014/2013
1. France 83.7 0.1
2. USA 74.8 6.8
3. Spain 65.0 7.1
4. China 55.6 -0.1
5. Italy 48.6 1.8
6. Turkey 39.8 5.3
7. Germany 33.0 4.6
8. UK 32.6 5.0
9. Russia 29.8 5.3
10. Mexico 29.1 20.5
Country 2014 % 2014/2013
1. USA 177.2 2.5
2. Spain 65.2 4.2
3. China 56.9 10.2
4. France 55.4 -2.3
5. Macao 50.8 -1.9
6. Italy 45.5 3.7
7. UK 45.3 10.3
8. Germany 43.3 5.0
9. Thailand 38.4 -8.0
10. Hong Kong 38.4 -1.4
Spain is the 9th largest economy in terms of accumulated inward and 11th in outward
FDI stock in the world.
Inward FDI stock (USD Millions)
Outward FDI stock (USD Millions)
Source: UNCTAD, WIR, 2015. Source: UNCTAD, WIR, 2015.
1. Spain: a highly internationalized economy
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Economy
Inward FDI stock 2014
Mill USD Share
1 United States 5,409,884 20.8%
2 United Kingdom 1,662,858 6.4%
3 Hong Kong, China 1,549,849 6.0%
4 China 1,085,293 4.2%
5 Singapore 912,355 3.5%
6 Brazil 754,769 2.9%
7 Germany 743,512 2.9%
8 France 729,147 2.8%
9 Spain 721,879 2.8%
10 Switzerland 681,849 2.6%
11 Netherlands 664,442 2.6%
12 Canada 631,316 2.4%
13 Australia 564,608 2.2%
14 Belgium 525,612 2.0%
15 Russian Federation 378,543 1.5%
16 Italy 373,738 1.4%
17 Ireland 369,168 1.4%
18 Mexico 337,974 1.3%
19 Sweden 321,103 1.2%
20 indonesia 253,082 1.0%
World 26,038,824
Economy
Outward FDI stock 2014
Mill USD Share
1 United States 6,318,640 24.4%
2 United Kingdom 1,584,147 6.1%
3 Germany 1,583,279 6.1%
4 Hong Kong 1,459,947 5.6%
5 France 1,279,089 4.9%
6 Japan 1,193,137 4.6%
7 Switzerland 1,130,615 4.4%
8 Netherlands 985,256 3.8%
9 China 729,585 2.8%
10 Canada 714,555 2.8%
11 Spain 673,989 2.6%
12 Ireland 628,026 2.4%
13 Singapore 576,396 2.2%
14 Italy 548,416 2.1%
15 Belgium 450,178 1.7%
16 Australia 443,519 1.7%
17 Russian F. 431,865 1.7%
18 Sweden 379,528 1.5%
19 Brazil 316,339 1.2%
20 Taiwan 258,829 1.0%
World 25,874,757
US, Italian, French, German and UK
Companies are the largest investors in
Spain.
Increasing interest from companies
in Asia (especially from China, India,
Korea and Japan) Latin America
(especially from Mexico, Brazil and
Colombia) and from the Middle East
Countries.
SPAIN Inward FDI stock by country (EUR Millions)
Source: Registro de Inversiones, 2015. Data Referred to 2013
1. Spain: a highly internationalized economy
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COUNTRY STOCK 2013 % total
1 USA 61,085 17.6%
2 ITALY 37,770 10.9%
3 FRANCE 34,192 9.8%
4 GERMANY 32,985 9.5%
5 UK 30,801 8.9%
6 MEXICO 22,383 6.4%
7 LUXEMBOURG 21,829 6.3%
8 NETHERLANDS 13,580 3.9%
9 BRAZIL 11,899 3.4%
10 SWITZERLAND 11,085 3.2%
11 CHINA 7,067 2.0%
12 UAE 5,627 1.6%
13 SWEDEN 4,804 1.4%
14 COLOMBIA 4,111 1.2%
15 CANADA 3,846 1.1%
16 JAPON 3,573 1.0%
17 BELGIUM 2,792 0.8%
18 PORTUGAL 2,700 0.8%
19 URUGUAY 2,405 0.7%
20 ISRAEL 1,230 0.3%
TOTAL 347,618
Spanish companies are among leading companies in the world:
1. Spain: a highly internationalized economy
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3 out of every 5 flights worldwide are controlled using
Spanish air navigation systems.
Telefonica is one of the largest telecommunications
companies in the world (in terms of market capitalization
and number of customers).
Santander is the 2nd bank in the Eurozone and one of the
first in the world (stock market capitalization: more than 90
billion euros) and BBVA now operates in 40 countries.
IBERDROLA is the 4th-largest utility company in the
world (in terms of market capitalization) and the 2nd
largest wind power operator in USA.
The Spanish infrastructure sector is a world leader in
foreign markets. Thirteen Spanish companies totaled 80
billion dollars in revenue. The ACS group continues to lead
the concession industry with 60 projects worldwide.
The Al Shoula Group, a Spanish-Saudi consortium, is to
run the high-speed train between La Mecca – Medina.
The Panama Canal expansion project has been awarded
to a Spanish-led consortium.
1. Spain: a highly internationalized economy
Spain is the 9th-most open country to Foreign Investment according to OECD’s FDI
Restrictiveness Index
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CLOSE OPEN
1. Spain: a highly internationalized economy
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• Over 12,500 foreign companies are currently located in Spain across all
economic sectors
• 70 of the FORBES Top 100 companies have branches in Spain according to
Thomson Reuters
2. Market Access
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Domestic market of over 46 million consumers: Spain has a GDP per capita (PPP)
above the EU-28 average.
2. Market Access
Source: IMF 2014
Spain grants free access to the world´s
largest market, the European Union: more
than 500 million consumers
Advantages of operating in the EU:
Intra-European duty-free market.
Free movement of goods and
services, capital and persons.
Single currency: EURO.
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Country GDP per capita
RK USD
1 United States 5 53,101
2 China 92 9,844
3 Japan 21 36,899
4 Germany 14 40,007
5 France 22 35,784
6 United Kingdom 20 37,307
7 Brazil 78 12,221
8 Russia 57 17,884
9 Italy 30 30,289
10 India 131 4,077
11 Canada 8 43,472
12 Australia 9 43,073
13 Spain 32 29,851
14 Mexico 65 15,563
15 Korea 26 33,189
Capacity for consumption of goods
The best European platform for doing business with Latin America:
2. Market Access
17 Agreements to Avoid Double Taxation
in Central and South America: Argentina,
Bolivia, Brazil, Barbados, Chile,
Colombia, Costa Rica, Cuba, Dominican Republic,
ElSalvador, Ecuador, Mexico, Panama,
Jamaica, Trinidad & Tobago, Uruguay, Venezuela.
20 Agreements for Protection and
Promotion of Reciprocal Investments
Bolivia, Colombia, Costa Rica, Cuba, Chile,
Ecuador, El Salvador, Guatemala, Honduras,
Jamaica, Mexico, Nicaragua, Panama, Paraguay,
Peru, Dominican Republic, Trinidad & Tobago,
Uruguay, Venezuela and Argentina.
Excellent communications and
infrastructure: Madrid concentrates around
35% of total air traffic between Europe &
Latin America.
Agreements for Protection and Promotion of Reciprocal Investments
Agreements to Avoid Double Taxation
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2. Market Access
1. Common historical, cultural and linguistic
roots. Institutional network relationships.
2. Strong economic and business ties:
Spanish companies have invested in strategic
sectors in Latin America (banking, utilities,
communications and transport, building
industry, airport management, etc.)
3. Good communications: Spain is a major
connecting hub for airlines traveling between
America, Europe and Middle East.
4. Multinational companies are increasingly
choosing Spain for their Latin American
headquarters.
5. Spain has become the European HQ for
Latin American multinational companies.
6. In the USA there are more than 50 million
people working in Spanish.
Why is Spain a perfect hub for doing business in Latin America?
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Spain is the world´s 2nd-largest investor in Latin America among European countries.
Source: ECLAC, 2014.
2. Market Access
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Spain: Top- Outward FDI Stock by country EUR Millions
Source: Spanish Ministry of Economy and Competitiveness, 2014.
2011 2012
% TOTAL 2012
1 UK 51,882 59,342 14%
2 BRAZIL 60,157 56,692 13%
3 USA 52,534 53,884 12%
4 NETHERLANDS 30,764 36,496 8%
5 MEXICO 26,966 29,202 7%
6 PORTUGAL 22,159 21,705 5%
7 FRANCE 15,199 15,789 4%
8 LUXEMBOURG 26,406 14,223 3%
9 SWITZERLAND 15,105 13,615 3%
10 ARGENTINA 15,183 12,976 3%
11 CHILE 12,192 12,405 3%
12 GERMANY 21,011 10,160 2%
13 VENEZUELA 4,960 9,181 2%
14 COLOMBIA 6,231 6,654 2%
15 HUNGARY 2,642 6,331 1%
16 PERU 4,228 5,716 1%
17 AUSTRALIA 5,317 5,462 1%
18 CHINA 4,496 5,172 1%
19 ITALY 4,807 5,054 1%
20 POLAND 3,848 4,792 1%
TOTAL 447,291 438,359 100%
Latin America and the Caribbean: origin of FDI
USA; 23%
Spain; 9%
Latin
America;
9% Netherland
s; 7% Canada; 5%
UK; 4%
Japan; 3%
China; 2%
Others;
38%
Many Spanish companies have a strategic position in key sectors in Latin America
(ICT, energy, finance, infrastructures, etc.)
2. Market Access
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Some multinational companies set up in Spain to manage their operations in Latin
America or the EU.
In addition, Spain has become the European Headquarters of Latin-American
multinational companies doing business in Europe and MENA countries.
• LATIBEX: the single international market for Latin American securities
regulated by the Spanish Stock Market.
2. Market Access
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Spain is a suitable platform within the European market for doing business with
North- African, Mediterranean, and Middle East countries:
2. Market Access
• 19 Agreements to Avoid Double Taxation: Albania, Algeria, Bosnia and Herzegovina Croatia,
Cyprus, Egypt, France, Greece, Israel, Italy, Kuwait, Malta, Morocco, Montenegro, Saudi Arabia,
Slovenia, Tunisia, Turkey, United Arab Emirates.
• 15 Agreements for Protection And Promotion of Reciprocal Investments: Albania, Algeria,
BosniaHerzegovina, Croatia, Egypt, Jordan, Kuwait, Lebanon, Libya, Montenegro, Morocco,
Slovenia, Syria, Tunisia, Turkey.
• Euro-Mediterranean
Association Agreements with
Egypt, Israel, Jordan, Lebanon,
Morocco, Tunisia and Algeria for
the gradual liberalization of
trade in the Mediterranean area.
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Euro-Mediterranean Association Agreements
Agreements for Protection and Promotion of Reciprocal Investments
Agreements to Avoid Double Taxation
Key Role of the Spanish Canary Islands Special Zone (ZEC) as a commercial and
logistic hub with Africa
Geo-strategical location: On the
Southernmost border of the
European Union (EU)
Strong historical and commercial
ties with Africa and America
Tax benefits for ZEC entities
Authorized by the European
Commission in January 2000
Europe’s most beneficial tax regime (4% corporate tax rate).
Excellent communications and services infrastructure.
Interesting tri-continental logistic platform to Africa, Latin America
and Europe
www.zec.org
2. Market Access
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2. Market Access
Source: Global Location Trends. IBM Global Business Services. 2015. (Projects of less than 10 jobs were not )included
Top ranking destination cities according to investment projects
Global Location Trends. IBM Global Business Services 2015
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3. Macroeconomic situation and structural
reforms
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Spain is growing consistently and in a balanced way The Spanish economy is growing twice as fast as the Euro Area
Growth driven primarily by investment, followed by private consumption
3. Economic policy and structural reforms
Source: Ministerio de Economía y Competitividad, OECD, IMF and
European Commission.
Full year Q1 Q2 Q3 Q4
Private consumption expenditure 1,2 3,1 2,5 2,9 3,5 3,5 3,0 2,7 2,5
General Government consumption expenditure 0,0 2,7 1,5 2,5 3,0 3,7 0,3 1,0 1,5
Gross Fixed Capital Formation 3,5 6,4 6,1 6,3 6,7 6,4 5,6 5,6 5,5
National Demand* 1,6 3,7 3,1 3,4 4,1 4,1 2,9 2,9 2,9
Exports of goods and services 5,1 5,4 5,8 6,0 4,5 5,3 6,0 5,8 5,7
Imports of goods and services 6,4 7,5 7,6 7,4 7,2 7,7 6,4 6,3 6,2
External demand* -0,2 -0,5 -0,4 -0,2 -0,7 -0,6 0,1 0,0 0,0
Gross Domestic Product 1,4 3,2 2,7 3,2 3,4 3,5 3,0 2,9 2,9
(*) Contributions to GDP in p.p
Other macroeconomic variables
Full year Q1 Q2 Q3 Q4
Unemployment rate (in %) 24,4 22,1 23,8 22,4 21,2 20,9 19,7 17,6 15,5
Full-time Equiv. Employment (YoY Growth) 1,1 3,0 2,9 2,9 3,1 3,0 3,0 2,9 2,9
Net lending(+)/borrowing(-) with RoW (% of GDP) 1,6 1,5 1,7 2,0 2,2 -- 1,6 1,4 1,3
GDP deflator (YoY Growth) -0,4 0,6 0,5 0,5 0,7 0,7 1,1 1,4 1,6
Deficit Excl. Financial Sector One-Offs (in % of GDP) -5,78 -4,2 -0,68 -2,95 -3,10 -- -2,8 -1,4 -0,3
Macroeconomic scenario (YoY growth rates in percent)
2016 2017
2016 2017
2014 2018
2014 2018
2015
2015
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GDP growth and current account balance
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
2008 2009 2010 2011 2012 2013 2014 2015 (p) 2016 (p) 2017 (p) 2018 (p)
Real GDP (% change) Current account balance (%GDP)
GDP growth and current account balance
Real GDP (% change)
Current account balance (%GDP)
Source: National Statistics Institute and Ministry of Economy and Competitiveness
Unlike previous expansions, growth is being consistent with external
surplus
27
Labour Market Reform Competitive Labour Costs: More Flexibility, Productivity, Employment & Training
Public Sector Reform Fiscal consolidation at all levels of Public Administration
Restructuring process completed in 2013 Financial System Reform
Reforms for Competitiveness
Competitive Markets Single Market Law. Services & Product Markets Liberalization
Investments and R&D Incentives
EU Framework: Competitiveness, Employment & R&D activities
Favourable tax rate on corporate income (25% in 2016). Fiscal Incentives
Fiscal Reform
More openness means a more Competitive & Resilient Economy External Sector
New fast track regime for International Investor on Residence & Working Visa. Visa & Work Permits
28
Public Sector Reform: Fiscal Consolidation at all levels of Administration
Strengthening the structural fiscal framework:
Constitutional Reform pioneered adoption of the Fiscal Compact.
Budgetary Stability Law provides for further fiscal discipline and far‐reaching monitoring and
enforcement tools.
Independent Fiscal Authority.
Measures to increase income and reduce expenditure at all levels, with the firm aim of achieving the deficit
goal agreed with the EU (Pension System Reform, Reform of the Public Administrations).
A Fiscal Reform to boost job creation and revitalize the economic growth.
3. Economic policy and structural reforms
Source: Ministerio de Hacienda y Administraciones Públicas
2014 2015 2016 2017 2018
-3.56 -2.9 -2.2 -1.1 -0.2
Autonomous Communities -1.75 -0.7 -0.3 -0.1 0.0
0.57 0.0 0.0 0.0 0.0
-1.04 -0.6 -0.3 -0.2 -0.1
-5.78 -4.2 -2.8 -1.4 -0.3
Local Governments
Social Security
General Government
Net Lending(+)/Borrowing. (% of GDP. Excl. Financial Sector One-Offs)
Central Government
29
Adjustment and recapitalization of the financial system: Spain’s financial sector is now
leaner, more efficient and better capitalized.
Intense restructuring process in terms of size and capacity. The total number of
entities in the financial sector, excluding credit cooperatives and foreign branches,
has decreased from 50 in 2009 to 12 at the present time.
Sanitization of bank balance sheets (recognition and treatment of bad assets):
Separation of assets to the Asset Management Company deriving from Bank
Restructuring (Spanish acronym: SAREB): Transfer of assets worth 106,58 billion euros
at a price of 50,78 billion euros.
Recapitalization of individual institutions and the entire system: The top quality capital
ratio, namely Common Equity Tier 1 or CET1, of Spanish banking institutions stood at
12.4%; and the overall capital ratio is 14.3%, far exceeding the regulatory minimum
levels.
Non-performing loans (NPLs) have continued to decline steadily, in line with the pick-up
in economic activity (-23.9% year oy in Q4 2015). The refinanced or restructured credit
to the resident private sector has also been declining.
3. Economic policy and structural reforms
29
Labour Market Reform:
Fostering Labour flexibility and productivity at company level.
Firm-level salary bargaining prevails over national, regional or sector collective
agreements.
Collective dismissals without administrative authorization are allowed for firms
posting falling profits for three or more consecutive quarters and elimination of
procedural wages.
Convergence and reduction of dismissal costs in line with EU(27) average.
Fair dismissal: severance pay of 20 days per year, up to 12 months
Unfair dismissal: severance pay of 33 days per year, up to 24 months. This
means a reduction of 26.6% in the paying severance
Simplification and clarification of the regime for individual and collective dismissals
due to economic circumstances relate to sales, revenues trends.
Creation of a new permanent contract directed at SMEs
Incentives and tax relief for job creation: €500 exemption for employers’
contributions for common contingencies to the Social Security when the worker is
hired under a full-time, open-ended contract. This exemption applies for two years.
3. Economic policy and structural reforms
30
31
Measures to foster growth, competitiveness and entrepreneurship
Law of Guarantee of Market Unity: eliminates the fragmentation of the national market, and enables a
convergent nationwide product/service regulation across all regions
Reform of the public administration services which is still under way.
Liberalization of the retail sector. No restriction on commercial opening hours in areas of commercial
attractiveness; increase of the number of opening days.
Deregulation of professional services.
Plan on Fostering entrepreneurship and business environment: measures to support entrepreneurs,
SMEs and self‐employed workers.
Significant reduction of the red tape to start a business.
The authorization of visa and residence permits will be made quicker and easier on grounds of
economic interest
National Commission of Markets and Competition: incorporates all sector regulatory bodies and the
National Commission of Competition .
Education reform on Improving the quality and results of Education and improves Vocational Training:
Updating of qualifications, modernization of tools and gradual implementation of dual training.
Law to De-index the Spanish Economy: Decoupling of the public administration service prices and fees
from the CPI (consumer prices index).
Strengthening of the Tourism Sector: A comprehensive National Tourism Plan (PNIT) for the period 2012-
2016 has been approved.
Reform of the Electricity Sector
Creation of the State Research Agency
Second-chance Mechanism Law to configure a fresh start for entrepreneurs in Spain and self-employed.
3. Economic policy and structural reforms
31
32
Investors’ Residence & Working Visa
Fast track framework for Investors and qualified professionals: Residence and
Working visa
THE PROCEDURES
10 days for visas and 20 days for authorizations
A single authorization for living and working in
Spain
Valid for the whole of Spain
GENERAL REQUIREMENTS
Not being in an illegal situation in Spain
Being 18 years old or older
Not having criminal records
Public or private health insurance in Spain
Enough economic resources.
VISA AND AUTHORIZATION CONCESSIONS FOR
Investors
Entrepreneurs
Highly qualified professionals
Scientists and researchers
Intra-corporate transferred employees
Freedom to live in Spain: Granted residence and work permits authorization
Source: http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/folletos/index.html
The family will be able to apply at the same time
Real Estate 0.5 Mill €
Spanish
Companies
1 Mill €
Bank Deposit 1 Mill €
Public Debt 2 Mill €
RESULTS
Spanish GDP ended 2015 at an average annual rate of 3.2%, 1.8 points higher than in 2014 and the
highest since 2007.
GDP growth is not linked to current account deficits as in previous growth cycles. The Current
Account Deficit: from roughly -10% in 2007 to a current account surplus in 2015. This is the third
consecutive yearly current & capital Account Surplus (2.1% of GDP)
Spanish exports of goods grew by 4.3% year-on-year in 2015 (1.8 points higher than the 2.5%
growth posted in 2014) to amount to 250.24 billion euros, the highest figure since records began.
The balance of Spanish exports in 2015 exceeds the figure for the Eurozone (4.2%). By country,
Spanish exports grew by more than those of France (4%), Italy (3.7%) the United Kingdom (-1.7%),
United States (-7.1%) and grew in Japan by (3.5%).
The ongoing geographic diversification of the Spanish exports pushes the increase of sales abroad:
In 2015, our exports to non-EU countries grew by 0.5% year-on-year for the sixth year in a row
Exports to third countries amounted to 35.2% of the total (from the 27,5 in 2005), with noteworthy
growth in exports to Oceania (8.3%), America (7.1%) and Asia (5.3%). Within these regions,
noteworthy growth was seen in sales to high-potential markets such as the United States (7.2%),
China (8.8%), Mexico (21.6%), Chile (23.9%), the Philippines (11.5%), Saudi Arabia (36%) and
Australia (15.1%).
Foreign productive investment amounted to 19.212 billion euros in 2014, 13.85% more than in 2013
according to data from the Foreign Investment Register of the Ministry of Economy Affairs and
Competitiveness
According to data released by the INE unemployment fell by 678,200 2015, the largest annual drop
since EPA records began. Spain has generated 36.6% of all the employment created in the Euro
Area since 2014.
3. Economic policy and structural reforms
33
For more information about macroeconomic
situation and economic policy, please log on
to:
www.tesoro.es
and
www.thespanisheconomy.com
34
4. Business climate
o Infrastructure and Technology
o Incentives and taxes
o Human capital: Productivity, Skilled
Labour Force and Competitive Costs
o Quality of life: Expat setting up
35
4. Business climate
o Infrastructure and Technology
36
37
250 airlines have scheduled flights, operating out of the country’s 47 airports, with Madrid
and Barcelona the main hubs.
Airport Network
Source: Eurostat: Last data available 2014
4. Business climate: Infrastructure & Technology
Country Thousands of passengers
on board
United Kingdom 22,0022
Germany 186,446
Spain 165,354
France 141,742
Italy 121,324
Turkey 165,720
Netherlands 60,963
Switzerland 46,127
Norway 37,602
Greece 39,118
Sweden 32,766
Portugal 32,558
Denmark 29,004
Belgium 28,775
Austria 25,714
Ireland 26,311
Poland 25,714
Finland 17,172
38 Source: International Union of Railways. Updated Sept 2014
Spain is the 3nd largest worldwide (1st in Europe) in High-Speed Network and the European leader with more
than 2500km in service, traveling at an average commercial speed of 222 km/h, higher than that of Japan
(218 km/h) and France (216 km/h). And a total railway network over 15,500 km.
According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indexes
of rail road infrastructure Quality in the world, and one of the best subway systems in major cities.
Railway Network
4. Business climate: Infrastructure & Technology
High-Speed Lines in the World (kilometres)
0 2000 4000 6000 8000 10000 12000
China
Japan
Spain
France
Germany
Italy
Turkey
South Korea
USA
Taiwan
Belgium
Netherlands
UK
Switzerland
Source: ADIF
Railway Network
39
Spain has the largest EU highway network with 14,701 km. According to The Global
Competitiveness Report (World Economic Forum), Spain has one of the best indexes of
Quality of roads in the world.
Road Network
4. Business climate: Infrastructure & Technology
Length of Motorways (kilometres 2012)
Source: Eurostat 2015. Last data available.
14701
12879
11465
6726
2988
2127
1719
1515
1419
1365
1254
900
780
769
751
0 5000 10000 15000 20000
Spain
Germany
France
Italy
Portugal
Turkey
Austria
Hungary
Switzerland
Poland
Croatia
Ireland
Finland
Slovenia
Czech Republic
40
4. Business climate: Infrastructure
Main Port Facilities
Excellent maritime connections, with 46 state-own ports on both the Atlantic and the
Mediterranean coasts, with 3 ports among the Top-20 container ports in Europe (Algeciras,
Valencia and Barcelona). According to The Global Competitiveness Report (World Economic
Forum), Spain has one of the best indexes of Quality of port infrastructures in the world.
Source: European Sea Ports Organization. ESPO & Puerto del Estado, 2015.
2014 %14/13
# Port | Country Mill € / Tonnes
1 Rotterdam (NL) 445,0 1,0%
2 Antwerp (NL) 199,0 4,3%
3 Hamburg (DE) 145,7 4,7%
4 Amsterdam (NL) 97,4 2,5%
5 Novorosiysk (RU) 121,6 8,1%
6 Algeciras (ES) 95,0 4,5%
7 Marseille (FR) 78,5 -1,9%
8 BremerHaven (DE) 78,2 -0,8%
9 Le Havre (FR) 67,6 0,6%
10 Valencia (ES) 67,0 3,1%
11 Duisburg (DE) 65,0 4,8%
12 Saint Petersburg (RU) 61,1 6,1%
13 Trieste (IT) 56,6 1,1%
14 Constantza (RO) 55,6 0,7%
15 Genoa (IT) 52,0 5,1%
16 Ghant (BE) 47,1 -2,3%
17 Dunkerke (FR) 47,0 7,8%
18 Barcelona (ES) 46,4 9,4%
19 Calais (FR) 43,3 5,1%
20 London (UK) 43,2 0,0%
21 Zeebrugge (BE) 43,0 0,5%
Top - 20 European Ports by Throughput
41
More than 80 Technology Parks
The main sectors of the
companies located in the Parks
Source: Association of Science and Technology Parks of Spain 2013
4. Business climate: Infrastructure & Technology
23%
15%
6%
5%
5% 4% 4% 4%
3% 2%
1%
28%
ICT Engineering/Consultancy
Medicine/Health Industrial
Agriculture/Biotechnology Energy/Environment
Technology centres/R&D Training/Human Resources
Aeronautics/Automotive Electronics
Business Centres Others
2 2
2
Madri
d
Seville
Huelva
1
Córdoba
2
Cádiz
2 1
Jaén 1
Almería
1 Granada
1 1
Murcia
2
Alicante 2
Barcelona
7 6
Cantabria
2
Valencia 2
Castellón 1
León, Burgos
and Valladolid
1
Valladolid 1
Teruel
1
Lérida
1
Gerona
1
Palma de Mallorca
1
Asturias 2
Gran Canary
1
Álava
1
Málaga 1 2
1
Fuerteventura
1
Tenerife
1
Guipúzcoa
2 1
Biscay
1
Huesca
1
Saragoss
a
1
Pontevedra
1
Badajoz
1
Orense
1
La Rioja
1
Salamanca
1 Guadalajara
1
Parks at full performance
Parks in development
66 parks in the Association of Science and
Technology Parks of Spain, hosting 6286
companies
42 Source: Eurostat – Community Survey on ICT usage in enterprises, 2011 (Data 2010)
0
10
20
30
40
50
60
70
80
90
100
ES
MT
FR
UK
FN
SE
GE
BG
NL IT PT
EU
-27
Broadband penetration in Business (% of companies with broadband access)
0
20
40
60
80
100Computer
Local Area Network
Wireless LAN
Broadband
Mobile Phones
Other Technologies
Internet
Total 10 to 49 50 to 249 250 or more
Source: ONTSI, based on INE 2011
ICT Infrastructures in Spanish
Businesses
Whatever the size of the company, Spain leads the field in technologically enabled
companies
Technology Adoption by Companies
4. Business climate: Infrastructure & Technology
43
24%
18%
29%
25%
17%
21%
11%
18% 20%
13%
16%
31%
17% 17%
21%
37%
28%
31%
13%
36%
20% 19%
28% 28% 28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
2.500.000
5.000.000
7.500.000
10.000.000
12.500.000
15.000.000
17.500.000
20.000.000
22.500.000
25.000.000
MT CY LU EE LV SI SK LT IE EL HU FI CZ PT AT DK BE SE PL NL ES IT FR UK DE
Line
s/10
0 in
habi
tant
s
Bro
adba
nd L
ines
Broadband Lines and Penetration Rate in
the EU27, lines/100 inhabitants
Source: XIV Implementation Report, European Commission, 2010
Broadband: European Comparison
4. Business climate: Infrastructure & Technology
4. Business climate
o Incentives and taxes
44
45
4. Business climate: Incentives & taxes
There are other regional and local incentives available in all Autonomous Communities
Main incentives for productive investment
European Union Incentives Scheme for Large Companies in Spain
Grants from Ministry of Finance and Public Administration
Additional Increase in Incentives from 10
to 20% for SMEs
Spain has got many Institutions that promote incentives in different calls along the year
R&D:
• The Centre for Industrial Technological Development (CDTI) has got a wide range of grants and loans at
competitive low interest rate for technological projects.
• The State Secretariat for Innovation in the Ministry of Economy and Competitiveness (MINECO) also offers
support with grants and loans for technological projects developed by companies and public bodies
• INVEST IN SPAIN/ICEX has developed a programme for supporting foreign companies up to €200,000 for
investments with a high degree of R&D in competitive tenders
• The National Innovation Company (ENISA) finances SMEs up to €1.5 million with participative loans at a
very competitive interest rate and where no-guarantee is required.
• The Public organization RED.ES promotes the IT activities of technological companies and start-ups financing
investments in infrastructures, equipments and so on.
Investments:
• The Official Credit Institute (ICO) supports the creation/investment carried out by companies and
entrepreneurs with loans/ leasing at a low rate
• The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and
Competitiveness (MINECO) support investments in equipment and infrastructures with grants and loans for
large and SMEs companies
• The Institute for Energy Diversification and Saving (IDAE) participates directly in projects with loans at a
low interest rate
Human Resources:
•The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and
Competitiveness (MINECO) support investments in human resources, training and hiring personnel with grants
and loans
4. Business climate: Incentives & taxes
46
Taxes: fiscal incentives for R&D
1. Favorable fiscal system for foreign investors and R+D activities: The 2nd most
favorable fiscal incentives for R&D among OECD countries.
2. In addition, the Spanish CIT law introduced a patent box type of incentive. Under this
regime 60% of net income arising from the letting of the right to use certain qualifying
intellectual property (IP) rights are tax-exempt.
Note: Tax subsidies are calculated as 1 minus the B index. For example, in Spain, 1 unit of R&D expenditure by large firms results in 0.349 unit of tax relief. Source: “Science, Technology and Industry, Outlook”. OCDE, 2012.
4. Business climate: Incentives & taxes
47
-0,1
0,0
0,1
0,2
0,3
0,4
0,5
Large firms SMEs
Incentives for hiring people
4. Business climate: Incentives & taxes
Source: Ministry of Employment and Social Security
48
Permanent Contract Incentives: Reduction in the employer's social security
contribution
Company Size Monthly Amount (€) Term
New contract (up to 31/08/2016) All Exemption for common contingences: 500€ 2 years
National Youth Guarantee System All 300 € 6 months
Training Contracts Incentives: Reduction in the employer's social security
contribution
Company Size Annual Amount (€) Term
New contract
Employee<30 years
Less than 250
employees 100% Throughout
the term of the
contract
More than 250
employees 75%
Training activities All Depends on the type of the training: Maximum: 4,160€ 3 years
Conversion of Training, Apprenticeships
Contracts into Permanent Contracts
All
1,800 € yearly for women 3 years
1,500 € yearly for men
Partial-Time contracts linked with training
activities
Less than 250
employees 100% for common contigences
1 year + 1
year plus
More than 250
employees 75% for common contigences
Hiring Incentives:Reduction in the employer's social security contribution
Company Size Annual Amount (€) Term
Research staff All 40% for common contingences
Throughout
the term of the
contract
"First young job" contract All
700 €/yearly for women 500
€/yearly for men 3 years
Employee<30 years
Apprenticeship contracts for first jobs All
100% for common contingences when the companies
hire beneficiaries of the National Youth Guarantee
System
Throughout
the term of the
contract
Employee<30 years
Companies with less than 50 workers
16>Employee<30
Employee>45 years
Less than 50
employees
3 years
hiring unemployed Average of 1,200 €
Average of 1,400 €
Companies with up to 9 workers hiring
unemployed Employee<30 years Up to 9 employees 100% for common contigences 1 year
Source: ICEX-Invest in Spain and Ministry of Employment and Social Security
Taxes: Moderate tax burden
The comparative analysis shows that Spain is a country with relatively moderate
ratio between Tax Revenues (Including Social Security Contributions ) and GDP
(32.5% GDP)
Countries UE. Tax Revenues (Including Social Security Contributions ) as a percentage of GDP
4. Business climate: Incentives & taxes
Source: Eurostat 2012
0,0
10,0
20,0
30,0
40,0
50,0
60,0
49
4. Business climate: Incentives & taxes
Taxes: moderate tax burden
1. A favourable tax rate on corporate income (28% for tax year 2015, and to 25% in 2016).
2. Reduced corporate tax rate (15%) for companies established on or after January 1,
2013. The reduced rate will be applicable for the first two years that the company is
generating profit.
3. An attractive allowance and deduction system in corporate tax (20.1% effective rate).
4. Participation Exemption system: dividends or profit participations from business
activities carried on abroad through subsidiaries or branches and the gains obtained
from the transfer of these securities are tax exempt in Spain if the Spanish company
holds a participation of at least 5% in the non resident company.
5. Favourable tax incentive for foreign workers: fixed rate of 24% (up to maximum of
600,000 €).
6. Spain has tax treaties with 88 countries. Under these treaties, residents in foreign
countries are taxed at a reduced rate, or are exempt from Spanish taxes on certain
items of income they receive from sources within Spain. These reduced rates and
exemptions vary among countries and specific items of income.
Source: Paying taxes 2013 (PwC & World Bank)
50
Taxes: ETVEs
1. Foreign Securities Holding Companies (in Spanish, ETVE) is a Special Tax Regime
applicable to Holding companies.
a) No taxation on paid-in dividends.
b) No taxation on paid-in capital gains.
c) No taxation on paid-out dividends/gains.
d) Stable and reliable regime.
e) Wide tax treaty network (88 treaties to avoid double taxation).
2. The attractiveness of ETVEs goes beyond the pure Tax Holding Regime. The ETVE
regime is an opportunity for international investors to channel their outbound
investments (in Europe, LATAM and other countries) through Spanish HoldCos.
4. Business climate: Incentives & taxes
51
Main Investors in Spanish ETVEs Source: Ministry of Economy and Competitiveness , 2015. Data Referred to stock 2012
0
5
10
15
20
Billio
ns
4. Business climate
o Human capital: Productivity, Skilled
Labour Force and Competitive Costs.
o Decreasing Unit Labour Costs.
52
Labour Costs
Labour costs in Spain are below the EU-28 average
4. Business climate: Human Capital:
productivity and skilled labour cost
53
43.0 41.2 39.8
35.6 35.0 32.5 31.7
31.7 31.3
28.0 27.6
23.7 21.1
20.9
15.9 14.3 14.1
12.6 11.5 10.4 9.3 8.8 7.8
7.4 6.5 6.2 4.7 3.7
3,8
00
05
10
15
20
25
30
35
40
45
Source: Destatis 2015 (Federal Statistical Office Germany)
Cost per hour Private Sector 2014 €/hour
Labour Costs
Unit Labour Costs more competitive than main European economies
4. Business climate: Human Capital:
productivity and skilled labour cost
54
85
90
95
100
105
110
115
2010 2011 2012 2013 2014 2015
Source: Eurostat. March 2016
UNIT LABOUR COST EVOLUTION, 2010-2015 Index, 2010=100
Germany
Spain
France
Italy
United Kingdom
Compensation of employees
Spain has the lower employee compensation in comparison with main European economies
4. Business climate: Human Capital:
productivity and skilled labour cost
55
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Eurostat. March 2016. Data: Millions € (at current prices). Note: Compensation of employees is defined as the total remuneration, in cash or in kind, payable by an employer to an employee in return for work done by the latter.
EMPLOYEE COMPENSATION Millions € (current prices)
Germany
Spain
France
Italy
United Kingdom
Salaries and wages in Spain
Average salaries by department for different sectors
4. Business climate: Human Capital:
productivity and skilled labour cost
56
0
10
20
30
40
50
60
70
80
90
Source: ODE Group Note: Gross Salary. For companies between 150-500 employees
Average Salaries by Department for Different Sectors 2016 Thousand €
Executive Director/National/Chief
Division Director
Manager/Head of Department
Officer/Programmer/Technician
Labour Productivity
Spanish Labour Productivity is better than EU-28 Labour Productivity
4. Business climate: Human Capital:
productivity and skilled labour cost
57
-4,0
-3,0
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Eurostat. December 2015. Data: % change on previous period
REAL LABOUR PRODUCTIVITY PER PERSON EMPLOYED % change on previous period
EU 28
Spain
Social Security Costs
Employer contribution rate: : From 18.9% to 23.5% in case of permanent contract during
2 years.
Incentives for certain hiring and training contracts applied to reduce employer Social
Security Contributions.
If the monthly salary is higher than the maximum contribution base, the Social Security
rate applies to this maximum contribution base, where the effective rate is lower.
Source: Ministry of Employment and Social Security
4. Business climate: Human Capital:
productivity and skilled labour cost
58
329.83 € 18.9%-23.5%
1,125.38 €
100 € 200 € 300 € 400 € 500 € 600 € 700 € 800 € 900 €
1.000 € 1.100 € 1.200 € 1.300 € 1.400 € 1.500 €
<1,067.40 € 1,067.40 € 3,641.99 € >3,642 €
Co
ntr
ibu
tio
n t
o S
. S
ecu
rit
y
Monthly Salary
Group 1 Employer S. Security Contribution for permanent contract during 2 years
Employer’s Social Security contributions before and after Royal Legislative Decree 1/2015
4. Business climate: Human Capital:
productivity and skilled labour cost
59
If a company hires a worker with a salary of 20,000€, after RD 1/2015, the total employer
contribution to Social Security is 4,764€ per year. That means a reduction of 23% in
comparison with the same employment contract before RD 1/2015 (6,180€).
Total Employers' Contribution to Social Security
Total Employers' Contribution to Social Security with 500€ Exemption
Group 1
Group 1
Annual (€) Monthly (€)
Annual (€) Monthly (€)
Salary 20,000.00 1,666.67
Salary 20,000.00 1,166.67
General Contingencies 4,720.00 393.33
General Contingencies 3,304.00 275.33
Unemployment 1,100.00 91.67
Unemployment 1,100.00 91.67
Accidents 200.00 16.67
Accidents 200.00 16.67
Salary Guarantee Fund 40.00 3.33
Salary Guarantee Fund 40.00 3.33
Professional Training 120.00 10.00
Professional Training 120.00 10.00
Total Employer's Contribution to
S.S. 6,180.00 515.00
Total Employer's Contribution to S.S.
4,764.00 397.00
Total Cost 26,180.00 2,181.67
Total Cost 24,764.00 2,063.67
% 23.61
% 19.24
Source: Ministry of Employment and Social Security Source: Ministry of Employment and Social Security
60
Human Capital: Business School
3 Spanish Business Schools are in Top-10 in the 2015 Financial Times
ranking of European business schools
Business Climate
European Business School ranking 2015
2015 Ranking School name Country
1 London Business School UK
2 HEC Paris France
3 Insead France
4 University of St Gallen Switzerland
5 IE Business School Spain
5 Esade Business School Spain
7 SDA Bocconi/Universita Bocconi Italy
8 Iese Business School Spain
9 IMD Switzerland
10 University of Oxford: Saïd UK
11 ESCP Europe France
12 Imperial College Business School UK
13 Rotterdam School of Management, Erasmus University Netherlands
14 University of Cambridge: Judge UK
15 Vlerick Business School Belgium
16 Essec Business School France
16 ESMT— European School of Management and Technology Germany
18 Mannheim Business School Germany
19 Warwick Business School UK
20 Grenoble Graduate School of Business France
Source: Financial Times 2015
Business Schools
Spanish Business Schools have three MBA programs among the top 20 in the world
4. Business climate: Human Capital:
productivity and skilled labour cost
61
Global MBA ranking 2015
2015 Ranking School name Country
1 Harvard Business School USA
2 London Business School UK
3 University of Pennsylvania: Wharton USA
4 Stanford Graduate School of Business USA
4 Insead France/Singapore
6 Columbia Business School USA
7 Iese Business School Spain
8 MIT:Sloan USA
9 University of Chicago: Booth USA
10 University of California at Berkeley: Haas USA
11 Ceibs China
12 IE Business School Spain
13 University of Cambridge: Judge UK
14 Hong Kong UST Business School China
14 Northwesterm University: Kellog USA
16 HEC Paris France
17 Yale School of Management USA
18 New York University: Stern USA
19 Esade Business School Spain
20 IMD Switzerland
Source: Financial Times 2015
62
Human Capital: Global Skills
Spain occupies 3rd position in the “Hays Global Skills Index, 2015” that
measures a comprehensive set of macroeconomic and labour market
indicators across 31 countries
Business Climate
The Hays Global Skills Index, 2015
Rank Country Score Rank Country Score
1 United States 6.9 17 Austria 5.1
2 Sweden 6.7 18 Australia 5.0
3 Spain 6.4 19 Denmark 5.0
4 Germany 6.4 20 Brazil 5.0
5 Hungary 6.3 21 India 5.0
6 United Kingdom 6.1 22 Poland 4.9
7 Japan 6.1 23 Czech Republic 4.9
8 Luxembourg 6.1 24 Chile 4.8
9 Russia 6.0 25 China 4.7
10 Colombia 5.9 26 Netherlands 4.7
11 Portugal 5.9 27 Singapore 4.7
12 Ireland 5.7 28 Switzerland 4.6
13 Canada 5.7 29 Hong Kong 4.5
14 Mexico 5.6 30 Italy 4.0
15 France 5.3 31 Belgium 3.7
16 New Zealand 5.1
Source: Hays Global Skills Index, 2015
Note: The seven indicators analyzed are: 1) Education Flexibility; 2) Labour Market Participation; 3) Labour Market Flexibility 4) Talent Mismatch; 5) Overall Wage Pressure; 6) Wage Pressure in High-
skill industries; 7) Wage Pressure in High-skill occupations
63
Human Capital: Highly skilled labor force
Spain occupies a prominence position in Europe in number of persons with
tertiary education, compared to the biggest European economies
Business Climate
0
10
20
30
40
50
60
United Kingdom France Spain Germany Italy
Source: OECD. April, 2015 Note: 2013, last data available
Population with tertiary education, 2013 % 25-34 year olds
4. Business climate
o Immigration
64
65
4. Business climate: Immigration
International mobility - New legal framework
THE PROCEDURES
10 days for visas and 20 days for authorizations
A single authorization for living and working in Spain
Valid for the whole of Spain
The family will be able to apply at the same time
GENERAL REQUIREMENTS
Not being in an illegal situation in Spain
Being 18 years old or older
Not having criminal records
Public or private health insurance in Spain
Enough economic resources.
VISA AND AUTHORIZATION CONCESSIONS FOR
Investors
Entrepreneurs
Highly qualified professionals
Scientists and researchers
Intra-corporate transferred employees
Freedom to live in Spain: Granted residence and work permits authorization
Benefits of the Schengen visa: freedom of movement
within the member states
Real Estate 500.000 €
Spanish Companies
1 mill. €
Bank Deposit 1 mill. €
Public Debt 2 mill. €
It is based on an agile and specialized system for visa and authorization concessions.
Source: http://prie.comercio.es/en/pages/programa-de-residencia-para-inversores-y-emprendedores-(prie).aspx
66
4. Business climate
o Quality of life: Expat setting up
Foreign Schools
There are currently 198 international schools in Spain, including 136 English spoken
Schools, 24 French Schools and 17 German Schools, among others
4. Business climate: Quality of life
67
0
20
40
60
80
100
120
140
Source: Ministry of Education, 2016
International Schools in Spain, 2016
Spain is the 1st country in Europe in terms of quality of life for ex-pats and
3rd-ranked worldwide
With large communities of many different nationalities, Spain is known for its highly
cosmopolitan character. On average, 12.2% of the Spanish residents are foreign-
born, a figure that rises to 16-17% in regions like Madrid or Catalonia
One of the largest number of International Schools in Europe
Outstanding & modern health system with very high standards
Favourable fiscal regime for expatriates
Law enforcement: Assurance & stability in business and social life
Excellent climate, first-class gastronomy, wide range of cultural and leisure
activities
4. Business climate: Quality of life
68
4. Business climate: Quality of life
League table of OECD countries
Source: The Expat Explorer Survey 2015.(HSBC)
69
Average life expectancy at birth in the
EU-28 (2013)
Country Men Women
Italy 80,3 85,2
Spain 80,2 86,1
Sweden 80,2 83,8
Cyprus 80,1 85,0
Luxembourg 79,8 83,9
Malt 79,6 84,0
Netherlands 79,5 83,2
France 79,0 85,6
Ireland 79,0 83,1
Greece 78,7 84,0
Austria 78,6 83,8
Germany 78,6 83,2
Denmark 78,3 82,4
Belgium 78,1 83,2
Finland 78,0 84,1
Portugal 77,6 84,0
Slovenia 77,2 83,6
Czech Republic 75,2 81,3
Croatia 74,5 81,0
Poland 73,0 81,2
Slovakia 72,9 80,1
Estonia 72,8 81,7
Hungary 72,2 79,1
Romania 71,6 78,7
Bulgaria 71,3 78,6
Latvia 69,3 78,9
Lithuania 68,5 79,6
United Kingdom .. ..
Source: INE-Eurostat 2015
0,67
0,62
0,61
0,59 0,58
0,57 0,57
0,53 0,52
0,50
0,52
0,54
0,56
0,58
0,60
0,62
0,64
0,66
0,68
0,70
Expat Experience
5. Business opportunities
Automotive
ICT (Information and Communication Technologies)
Biotechnology, Pharmacy and Life Sciences
Aerospace
Logistics and Transport
Environment and Water Treatment
Chemical Industry
Nanotechnology
Agro-food
Real Estate
Tourism and leisure
Natural resources
Textile &Retail
70
5. Business opportunities: Automotive
71
Investing in Automotive
72
Why Spain for Automotive?
SPAIN is a key Player in the European Car Industry.
2nd manufacturer in the EU and 8th worldwide.
Productive and flexible manufacturing plants.
High Future Investment committed by Main Car manufacturers.
Powerful industrial supply chain and Auto Parts Industry.
Availability of highly qualified human resources.
High public and private investment in Professional Training.
Leadership in European Industrial Innovation-Mobility Sector.
Privileged Export Platform towards EU, Latin America, North Africa.
Open Country for Foreign Investment.
Public Support for Business Development.
5. Business opportunities: Automotive
73
Key figures: Automotive Industry in Spain
Spain is the 2nd-largest car manufacturer in Europe and 9th in the world.
Spain is the 1st manufacturer of Industrial Vehicles in Europe *
Most of the world's biggest car manufacturers are present in Spain with 17
automobile production plants.
Nine out of ten vehicles Made in Spain are exported to over 130 countries
Spain Automotive Parts Industry ranks 6th in the world in terms of turnover.
* Including light commercial vehicles
5. Business opportunities: Automotive
74
5. Business opportunities: Automotive
Sevilla
Valladolid
Palencia
Santander Álava
Vigo
Madrid Ávila
Navarra
Zaragoza
Valencia
Barcelona
Componentes
Nissan Mercedes-Benz
VITO y Clase V
(2014)
VW Polo (2014)
Citroën C4
Cactus (2014)
Renault Kadjar
(2015)
Renault Megane 3 Renault Megane 4
(e híbrido) (2016)
Renault Twizy Renault Captur
Nissan NT 500 Nissan NT 400
Iveco Daily y
Daily GNC (2015)
Renault Cajas
de Cambio
Ford S-Max
(2015)
Ford Mondeo y Hybrid (2014)
Ford Galaxy
(2015) Ford Kuga
Ford Transit Connect
y Tourneo Connect
Seat Ibiza
(2015)
Seat Leon (2015)
Audi Q3 (2015) Seat Altea
Nuevos Pick-up
2016
Nissan – Mercedes
– Renault
Nissan Pulsar
(2015)
Nissan NV 200 y
e-NV 200 (2014)
Iveco Stralis
Y Stralis
GNC/GNL
Iveco Trakker
Citroën C-Elysse Peugeot 301
Citroën Berlingo Peugeot Partner
Nuevo K9 (Berlingo – Partner – Combo)
(2016)
Citroën C4
Picasso
Chasis Mercedes-Benz
OC 500
Opel Corsa
(2014)
Opel Meriva
Opel Mokka Nuevos
Opel Meriva
Citroën C3
Picasso
(2016)
Motores Diésel
K9
Versión
GLP
Versión
Eléctric
a
Versión
GNC
Motores Gasolina
H4Bt y H5F
Motores
Ecoboost
(Gasolina) Motores
Nissan Diésel
Versión GNC
2
17 plants in Spain and more than 40 manufactured models
75 Sources: ANFAC (Spanish Association of Vehicle Manufacturers) · SERNAUTO (Automotive Parts Exporters Association ) Latest available figures
Key figures: Automotive Industry in Spain
Vehicle manufacturing in Spain was up 11% in 2014 reaching 2.4 million units
Automotive Industry turnover accounts for 10% of Spain’s GDP.
300,000 people directly employed in the Industry.
2,000,000 jobs linked to the Sector.
2.1 Million vehicles exported to 130 Countries in 2014 Export value €30bn.
Vehicle exports increased by 8.5% in 2014 to 2,039,893 units.
Automotive Industry Main exporter with 18% of total Goods Exports.
3-4 Million vehicles transported every year through the territory.
34 Technology Centres devoted to Automotive Industry.
R&D: One of the highest investment rates among all industries
€63 Million Annual average Investment in Professional Training by Car Manufacturers.
Lower Unit Labor costs than EU average in the Industry.
5. Business opportunities: Automotive
76
Sources: ICEX-Invest in Spain · Real Instituto Elcano · Ministry of Economy and Competitiveness (dataInvex)
Key figures: Foreign Direct Investment
New Industrial Plans have been approved by the 9 Multinational brands established
in the country.
13 new models assigned to Spanish plants between 2012-2015.
€10 billion investment in progress to expand production in Spanish Plants, including
new models and electric models
Plan of the Spanish Industry to produce 1 Million extra vehicles “3 Million Plan”.
5. Business opportunities: Automotive
77
Automotive Industry in Spain: AUTO-PARTS
Spanish Auto-Parts Industry ranks 6th in the world in terms of Turnover.
Main global suppliers of the Automotive Industry established in Spain.
1000 companies belonging to 720 groups provide customized Service to Car Manufacturers
200,000 people directly employed in the Sector
Turnover of €27.5 bn in 2013, 65% exported to 150 countries.
EU, USA, Mexico, North Africa and BRICs top ranking destinations of Spanish Exports.
€1,500 millions total industrial investment in 2013 – €785 million in R&D&i
Source: SERNAUTO (Spanish Association of Automotive Parts and Accessories Manufacturers). Last available figures: 2013.
5. Business opportunities: Automotive
78
Spanish Companies and Technology Centers are leading the 3 European projects on new batteries:
NECOBAUT, SOMABAT, GREEN LION.
The Spanish Technology Platform Move to Future ww.move2future.es brings together 150 Key
innovative Companies, Research and Technology Centers.
Spanish Scientific, Technological and Industrial capabilities on future transport are well
summarized in the document Intelligent Strategy for Future Transport (Green Vehicles
Spain).
120 Eco-electromobility projects with Spanish Participation and 110 New Products/Services compiled
for Green Car Initiatives.
Eco-Electromobility: Spanish Capabilities and Leadership
Spain contributes to Eco-Electromobility as a major
component designer and manufacturer and as provider of
Infrastructures and Network Intelligence.
Spanish Companies and Technology Centers have taken
part in 2 out of 3 of the projects of the European Green Cars
initiative.
5. Business opportunities: Automotive
79
RENAULT, MERCEDES -BENZ, PEUGEOT- CITROËN, NISSAN are already manufacturing full
electric powered and hybrid vehicles in Spain.
i2e Full Electric Bus of IRIZAR already in the Market.
AUTO-PARTS companies with plants in Spain are already providing specific components and
systems for electric and hybrid vehicles.
Eco-Electromobility: Spanish Capabilities and Leadership
5. Business opportunities: Automotive
80 Sources: fDi Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).
Success stories
News/Investment Projects
RENAULT
November 2012 Renault approves the Industrial Plan 2012-2014 for the Manufacturing
Plants of Palencia (Megane), Seville and Valladolid (Captur and Twizzy models). 100
new jobs will be created in Seville's Transmissions Plant.
IVECO- (Fiat Group)
Industrial Plan up to 2016 for the manufacturing centers of Madrid and Valladolid (Heavy
Vehicles). Investment of €0.5 billion and creation of 1200 jobs throughout this period.
FORD
US-based automotive giant Ford will expand its manufacturing complex in Almussafes,
Spain. The company will build a new 80,000 m2 plant at the site to produce its own
automotive parts and increase the production of Ford Kuga by 10%. €1.1 billion
investment has been committed through the period 2009-2013.
MERCEDES
In 2013, the company will Invest up to €200 Million to adapt Vitoria Plant Facilities for the
new VITO VS20 and its Electric Version. The Industrial Plan secures jobs at the plant.
5. Business opportunities: Automotive
81
Sources: fDI Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).
PSA Peugeot-Citroën
It is to create 1000 new jobs in 2013 in the Manufacturing Facilities of Vigo for the
Production of Citroën C-Elysee, Electric Versions of Peugeot Partner and Citroën
Berlingo and New C4 Picasso.
NISSAN
In 2014, announces €130 Million Investment in Barcelona’s Plant to produce a new
Sedan starting 2014, and investments of €10 Million in its components manufacturing
plant of Cantabria.
GM
Includes Spanish Plant of Figueruelas in its Industrial Plan for Europe that will drive
and investment of up to 4 Billion in 23 new OPEL models in Europe for the period 2013-
2016.
SEAT (VW Group)
The group VOLKSWAGEN invested €665 Million in the SEAT Plant of Martorell in 2012,
including €100 Million in R&D and €13 Million in Professional Training. Martorell is one
of the Group’s most productive and flexible plants, with 377.000 units in 2012 including
the New Audi Q3. In 2013, the Plant will market the new SEAT Leon models.
5. Business opportunities: Automotive
82 Source : SERNAUTO (Spanish Association of Auto-Parts Exporters)
Automotive Industry in Spain: AUTO–PARTS. New Investment Projects
New Investment announcements by Auto-Parts Multinationals in 2013
FAURECIA
The French multinational of Auto-Parts has chosen Valencia to set up its fifth R&D Centre
in Spain. It will be located in the Technology Park of Paterna and is to employ 200
Technicians.
MAHINDRA
The Indian giant, leading manufacturer of Components in Asia, buys a 13.5% share of the
Spanish company CIE Automotive for €96,24Million sealing a worldwide strategic alliance.
SAMVADARDHANA MOTHERSON PEGUFORM
It has announced plans to invest €5M as a part of its €30M expansion Plan to expand
production capacity in its manufacturing facility in Ripollet (Spain) to increase production of
sintered auto-parts at the site. The entire investment will create about 100 jobs.
MAFLOW SPAIN AUTOMOTIVE
The Auto Parts company owned by the Polish Industrial Corporation Boryszew invested
€2Million in 2013 to expand production at its Plant of Guarnizo (Cantabria-Spain).
MAFLOW is one of the larger manufacturers of Air Conditioning tubes worldwide. Guarnizo’s
Plant is its only manufacturing Centre in Spain with 100 employees.
5. Business opportunities: Automotive
83
Investing in ICT
(Information & Communication Technologies)
5. Business opportunities: ICT
84
Spain is a leader in advanced technologies:
Spanish landing software is renowned and used worldwide
Major events/Complex, distributed international delivery
Hi-Tech and Defence Industry
Telecommunications, Utilities, Energy, Banking…
Mobile World Congress in Barcelona World’s Mobile Capital
Nearshoring value added location worldwide (BPO & IT)
Spanish companies are present and recognized in major international markets:
5. Business opportunities: ICT
Spain is one of the most important ICT market by volume in Europe: €89,894
Million.
There are more than 30,000 ICT companies, including digital content, operating in
Spain. The sector is currently 1 employing more than 425,000 workers.
The gross added value at market prices represents the 4.4% of GDP in 2014.
Information and Communication Technologies Industry in Spain
85
5. Business opportunities: ICT
Source [1] : ONTSI, 2015. Data 2014 (Last data available)
Spain ICT Sector Turnover 2014
31.7%
31.7%
15.6%
17.7%
3.3%
Telecommunications
Information Technologies
Production
Digital Content
€89.89 Billion
Commerce
86
Leading ICT multinationals are already successfully located in
Spain, taking advantage of Spain’s benefits:
5. Business opportunities: ICT
Software Vendors Hardware Vendors
Telecom equipment vendors
ICT Services and Consulting Companies
Service Providers
IBM was set up in Spain in 1926. Today, the Spanish subsidiaries have 7,200 employees.
IBM Spain coordinates the activities of IBM in Portugal, Greece and Israel.
Projects developed in Spain:
• Centre of excellence in Barcelona to develop solutions for financial entities and the
health sector.
• INSA, an IBM branch, has set up two centres (Caceres and Salamanca) for software
developments to be applied worldwide.
• MareNostrum, supercomputer installed in the Barcelona Supercomputing Centre in
collaboration with the University of Catalonia.
• Technology Expert Council (TEC), which integrates IBM’s best talents in Spain to
enhance the leadership of the company and develop its technical knowledge.
In the beginning, HP was set up in Spain as a manufacture centre.
Nowadays, it has changed its strategy and has set up worldwide recognized support and
R&D centres.
Success stories
87
5. Business opportunities: ICT
According to Walter Ji, CEO of Huawei for Spain and Portugal,
Huawei has contributed to the transformation of Telefónica
through its IT solutions and the evolution of their network
infrastructure equipment, reaching an extensive footprint
across the Group
At the same time, Huawei has completely transformed the
portfolio of devices for the customer in the countries where
Telefónica is present, especially mobile devices, where 2 out of
3 units already sold by Huawei are smartphones
In addition, the Huawei vertical cloud solutions for different
industries have worked strategically in the process of
transforming the B2B business of Telefónica.
Telefónica, Mozilla and ZTE launched the world’s first
commercial Firefox OS with the ZTE Open available at
Movistar stores from last July.
The ZTE Open offers customers a smartphone experience
at an incredible price point.
Firefox OS devices will also be launched by Telefónica in
other markets, including Colombia and Venezuela.
Success stories
88
5. Business opportunities: ICT
5. Business opportunities: Life Sciences
89
Investing in Life Sciences
• Biotechnology
• Pharmacy
• Hospitals
• Healthcare technology
90
Solid Basic Science: Good scientific output.
Spain is 10th world scientific power and 5th by
scientific production in the EU15.
Integrated Healthcare System: Spain has an extensive network of university hospitals,
both public and private, backed by leading-edge research centres. The system is ideal
for translational medicine and discovering new drugs and advanced therapies.
Consolidation of biotechnology sector and an established pharmaceutical industry:
Biotechnology companies are growing faster here than in other countries and pharmaceutical industry
is leader in R+D spending in Spain
Excellent infrastructure for innovation: exponential growth of science and technology parks,
research centres and institutes of technology. Spain’s infrastructure also incorporates the latest
technology for life sciences projects.
Highly qualified workforce: There is a surplus of talent for competitive and innovative projects. In
some areas of Spain the percentage of workers with post-graduate studies is higher than the
European average.
Why Spain for Life Sciences?
5. Business opportunities: Life Sciences
Source: ASEBIO 2014 Report 91
Solid macroeconomic impact
Directly and indirectly, the sector accounted for 9% of Spain’s GDP (data
close to traditional sectors as tourism and automotive)
Consolidation of Spanish biotech sector
Biotechnology sector: overview
Growing number of biocompanies and dynamic creation of highly qualified jobs
Near to 3000 companies involved in biotech activities and 550 strictly biotech
170,000 employees and 9000 R+D activities dedicated
Breakdown of biocompanies by activity
Of all strictly biotech companies 62% focus on healthcare and 27% on agro-food.
67% of industrial companies related to biotechnology focus on agro-food and 23% on healthcare
5. Business opportunities: Life Sciences
92
Distribution of biotechnology companies and
biotech users by region
At present there are 7 bio-regions coinciding with
the major centers of technical innovation
Most biotech companies are located in Catalonia
(19.43%), Madrid (17.53%) and Andalusia
(15.49%). Together they accounted for more than
50% of the national total.
Source: ASEBIO 2014 Report
5. Business opportunities: Life Sciences
Source: FarmaIndustria Annual Report 2014 · PMFARMA website
Pharmaceutical Sector: overview
93
There are about 425 pharma companies in Spain, including some with no production and/or marketing
activity. Near to 60% are foreign companies.
Leading pharmaceutical/biotech multinationals are already located in Spain many of which have
successfully chosen our country for the establishment of Research Excellence Centres, Production or
Distribution Centres.
Spain’s pharmaceutical
industry enjoys a good
standing in the UE:
5th in terms of sales
5th in terms of job
creation
6th in terms of
pharmaceutical
production
5. Business opportunities: Life Sciences
Source: FarmaIndustria Annual Report 2014 94
Pharmaceutical Sector: R&D spending and workforce
The pharmaceutical industry is leader in R&D spending in Spain
Pharmaceutical companies set aside near to 900 M € for R&D
The sector accounts for 20% of all private R&D spending in Spain
Job creation in R&D
The pharma industry has 4,500 employees working full-time on R&D
This is 12% of all R&D employment in Spanish industry
200,000 total employment rate, direct and indirectly
A big market
Total sales came to 13.3 billion €
In 2014 pharmaceutical exports come to 10 billion €
Pharmaceutical products export ranks 3rd in customs duties in the Spanish exports table and account
for 4.3% of total Spain`s total exports
5. Business opportunities: Life Sciences
Source: The Ministry of Health and Social Policy, IDIS Report “Private Healthcare , adding value. Situation analysis 2014” 95
Hospital Sector: introduction to the healthcare system
Spanish Healthcare System (SHS): public and universal
This includes 3,000 health centres and 10,116 local consulting rooms.
800 hospitals (40% public and 60% private) with 162,538 beds (70% public and 30% private)
Private healthcare represents a sizeable proportion of the Spanish economy
Private healthcare expenditure accounts for 27% of total healthcare expenditure.
3.2% of Spain's GDP.
More than 450 private hospitals, 2,900 medical centers.
Substantial private sector investment in healthcare
Collaboration between the public and private sectors. 42% of private hospitals have some type of
outsourcing agreement with the government.
Strong investment in high-tech equipment
Government concessions: 8 hospitals operating under concession model.
Top ten insurance companies represents approximately 82% of the market
5. Business opportunities: Life Sciences
Source: FENIN annual report 2014
Healthcare Technology: overview
The healthcare technology market
This sector invoiced about 6,800M €
It comprises more than 1,050 companies.
Job creation
The healthcare technology sector employs more than 25,000 people.
Exports are growing
The value of exports exceeded 2,200M €.
This figure represents 0.92% of total exports in Spain.
Important trade partners
The target market is still the rest of the EU, which takes 60% of exports.
Asia and East Europe are playing an increasingly important role as big importers of Spanish technology
and products.
96
5. Business opportunities: Life Sciences
97
Merck has concentrated its global growth-hormone production in Spain and has recently announced a 14M €
investment to increase by 50% the production capacity of its facility in Madrid.
ALK-Abelló has recently concentrated its global production of single-use adrenaline auto-injector Jext®. It has
invested more than 25M € in their production facilities in Madrid and created more than 70 jobs.
Lilly has in Madrid its research centre for medicinal chemistry, one of the biggest in the world. In 2015 it was
announced that this plant will take over production from Lilly’s central in USA, increasing its productivity in 30%.
Bayer has concentrated its global aspirin production in Asturias, has invested more than 20M € and exports to
eight production centers worldwide.
Celgene opened its first research centre outside the United States in Seville. The Celgene Institute of
Translational Research Europe (CITRE) plans to focus on advanced therapies and regenerative medicine
investing 60M €.
Success stories: Proof of concept for the global market
5. Business opportunities: Life Sciences
98
Genzyme has setting up a sales office in Madrid and has a warehouse for domestic distribution.
GSK has in Madrid its research centre for tropical diseases, Molecular Discovery Research and Drug Discovery
activities. In 2014, GSK announced that they plan to invest 20M € in the next 4 years in their production center in
Castilla y Leon.
TEVA manufactures in Spain all the omeprazol that exports to Europe. From 2008 to 2014 it has invested 33M €
in its factory in Zaragoza.
Pfizer has invested 12M € in its European Biometric Centre, which has support functions for the rest of Europe
and USA.
Novartis announced in 2013 a 60M € investment to expands its facilities in Cataluña for the manufacturing of
the entire production line of inhalers. The expansion will create 70 jobs.
Success stories: Proof of concept for the global market
5. Business opportunities: Life Sciences
5. Business opportunities: Aerospace
99
Investing in Aerospace
The Spanish Aerospace Industry is 5th in Europe in terms of turnover (€9.4 billion in
year 2014) and employment (more than 50,000 employees).
The Spanish space sub-sector is 5th at the European level, employs almost 3,400
people and had a turnover of ca. €720 million in year 2014.
Half of the commercial aircraft in the world uses Spanish technology.
R&D:
The investment in R&D activities reached
€987 M in year 2014 (10.5% of the
industry turnover)
Government support:
The Spanish authorities consider the
Aerospace Industry one of the Strategic
Industrial Sectors.
Creation of several public R&D centres
focused on the aerospace industry.
Aerospace Industry in Spain
100
5. Business opportunities: Aerospace
101
R&D: invests 11% of turnover in R&D (€987 M in year
2014)
Highly qualified human resources: 40% of the
aeronautics employees are University graduates or
engineers and 47% are highly qualified technical
professionals.
Government support: The Spanish authorities consider
the aerospace sector to be strategic so it offers several
grants and incentives lines.
Creation of several public R&D centres focused on the
aerospace industry.
The Spanish Aerospace industry is the 5th in Europe (and 8th in the world) in terms of turnover (€9.4 billion
in year 2014) and employment (more than 50,000 employees).
The Spanish Aeronautics industry is a world leader in several fields: composite aero structures, low
pressure turbine engines, Air Traffic Management systems, Military Transport Aircraft, etc.
The Spanish Space industry takes part in important contracts of high added value, in qualification of flight
equipment and ground segment, and development of satellite systems. Moreover, Spain has satellite
services operators. The Spanish Space sub-sector is 5th at European level, employs almost 3,400 people
and had a turnover of ca. €720 million in year 2014.
Half of the commercial aircraft in the world uses Spanish technology.
5. Business opportunities: Aerospace
102
Spain has significant Aeronautics Clusters: they provide new entering
companies with infrastructures, research centers, technology parks
offering interesting synergies.
5. Business opportunities: Aerospace
BOEING has developed important R&D Centres in Spain:
•First Boeing R&D centre outside the USA
•Main areas: safety, ATM and environmental technologies
•April 2008: first flight of an aeroplane powered by hydrogen fuel cells – Ocaña
(Madrid)
According to Boeing:
“The reason for choosing Spain was the country’s outstanding role in the EU and
as a reference point with the Latin American countries.
It also shows the relevant position the Spanish Aerospace industry has acquired in
the last few years and the country’s capabilities in environmental and ATM
technologies”
Source: www.boeing.es
Success stories
103
5. Business opportunities: Aerospace
104
The Consortium EADS-AIRBUS has a very significant presence in Spain
Civil
aircraft
A380 – Double-deck, wide-body, four-
engine jet airliner. It is the world’s largest
passenger airliner.
It began commercial service in October
2007 with Singapore Airlines.
Spain has a participation share of 8%.
A350XWB
Last Airbus civil aircraft model: from 250 to 350-seater. Over 70% airframe is made from
advanced materials: composite structures, titanium and advanced aluminum alloys.
The two first test flights have already been developed.
Spain has a 11% share of the program.
HMC (Harbin Hafei Airbus Composite Manufacturing Center is a joint venture between
Airbus (20%) and its Chinese partners (mainly Harbin Aircraft Industry Group, 50%).
HMC manufactures elevators that are being delivered to Spanish company Aernnova
(the first ship set was delivered last September 2013).
Aernnova will later on deliver those elevators to the Airbus plant in Getafe (Madrid,
Spain).
Success stories
5. Business opportunities: Aerospace
105
A400M – Military transport aircraft
Spain has a 15% of participation share, including:
-Final Assembly Line
-Simulation and training Center
- Services Logistics Hub
All of them located in Seville (Spain)
The first A400M aircraft have already been
delivered to customer (France) in September 2013.
A330 MRTT – Multi Role Tanker Transport
Refueling aircraft, entirely developed by
Spanish industry, including a refueling pole
with electric controls.
Eurofighter Typhoon– Multi Role Fighter
14% share of participation by the Spanish
industry. Major components developed in
Spain:
-Right wing
-Leading edge slats.
Eurocopter– Military helicopter
Plant located in Albacete (Spain):
-Final Assembly Line
-Delivery Center
For models: NH-90, TIGER and EC-35
The Consortium EADS-AIRBUS has a very significant presence in Spain
Military
aircraft
Success stories
5. Business opportunities: Aerospace
106
Investing in Logistics and Transport
5. Business opportunities:
Logistics and Transport
Logistics and Transport Industries in Spain
107
Spanish Logistics Sector ranks among the top-20 in the world according to
the latest Logistics Performance Index of the World Bank (11th among EU
countries)
Turnover €98.0 Billion
• Logistics
• Road, Railway, Sea and Air Freight
• Growth rate of 7% in the last 3 years
• Almost 4% of the Spanish GDP
Employment > 861,000 workers
• 4.2 % of active workers in Spain
• 90.8% occupancy rate
Companies > 200,000
• Structure: High market concentration
• 90% SMEs
• 10 large enterprises manage 27% of the business
Source: National Institute of Statistics, 2014 · Logistics Performance Index (The World Bank)
45,3%
1,8%
8,7%
44,2%
Road & Rail Freight
Sea Freight
Air Freight
Warehousing and other activities related to transport
Turnover 2012
5. Business opportunities:
Logistics and Transport
108
Railway Air Road Sea Total International Freight
Railro
ad
an
d A
ir f
reig
ht
(Mn
To
nn
es
/ y
ear)
To
tal In
tern
ati
on
al fr
eig
ht,
Sea a
nd
Ro
ad
freig
ht
(Mn
To
nn
es
/ y
ear)
2007-2013 Evolution of International Traffic (million Tn)
Source: Annual Report, 2014 – Spain’s Transport and Logistics Observatory.
5. Business opportunities:
Logistics and Transport
109
29 Container Terminals in 21 Ports • Capacity: 22,1 Million TEUs/year
• Ocuppied surface: 7,73 Million sq m
• Average productivity: 545 TEUs/m
In 2014 a total 7.66 Million
cruise passengers
5. Business opportunities:
Logistics and Transport
110
5. Business opportunities:
Logistics and Transport
• The Infrastructure, Transport and
Housing Plan (PITVI) (2012 - 2024)
states a stable and sustained investor
scenario of up to 0.94% of GDP during
the period.
• The Trans-European Transport
Network development encloses the
Spanish Corridors in the Atlantic and the
Mediterranean Sea to foster the Logistics.
• The Mediterranean Corridor plan
connects the Mediterranean Spanish
Seaports to a rail corridor which links
North Africa to Central Europe through
Spain.
• Intermodal investments: Spanish Ports
increase their commitment for 2015 to
over 423 million euros mainly focus on
completing basic infrastructure projects
and improving road and railway
connections.
Success stories
• DHL Spain is the key input platform across the DHL network to Latin American markets.
Invest in Spain.
• TNT International Operations Centre Madrid - Barajas (Spain) became hub for South
America in 2002. Today, shipments to and from fifteen South American countries are
handled from the Barajas Hub and to its whole network.
• Total Terminal International Algeciras (TTIA) part of the South Korean Hanjin Shipping
group builds its first container terminal semi-automatic of the Mediterranean and Southern
Europe.
111
5. Business opportunities:
Logistics and Transport
Success stories
Hutchison Port Holdings, a subsidiary of Hong Kong conglomerate Hutchison
Whampoa, operates the new semi-automatic container terminal of the Prat quay at the
Port of Barcelona, which represents an initial investment of 300 million Euros and aims
to be the largest terminal in Southern Europe.
Mexico's Pemex will install its European operations base at the port of A Coruña which
implies a direct investment of $70 million.
The Danish APM Terminals Algeciras will devote €42 million investment to meet their
new triple-E ships in the port of Bahia de Algeciras.
Toyota Motor Europe (TME) sets up a new logistics centre in Illescas for the delivery
of the brand’s spare parts and accessories in Spain.
The German Vossloh Rail Vehicles operates one of its engineering centres, a
reflection of its commitment to innovation, in Valencia, Spain.
One of the main actors of E-commerce in Europe, Vente Privée, opens its third
logistics platform in Spain after Germany and Italy.
112
5. Business opportunities:
Logistics and Transport
5. Business opportunities:
Environment and Water
113
Investing in Environment and Water
Environmental Industry in Spain
114
The Spanish environmental sector accounts 3,6% GDP
Sales: 40.355 million €
7.780 companies employing 530.947 people directly
(estimates put employment at 1 million in 2020)
• 26,4% work in Waste treatment and management.
• 11% work in Water treatment.
Environmental Industry in Spain
Success stories
Spain ranks fifth in the world and third in Europe for ISO 14001 Environmental Management
certificates with more than 16,500 awarded.
In 2011, the EU granted 85.8 million € to 29 Spanish projects on nature preservation, climate
change, environmental policy, clean technologies and environmental information and
communication.
Areas that require urgent attention and offer opportunities to foreign investors include
WasteManagement, Air Quality and Water Treatment:
• Waste generation: 463 kg/inhabitant in 2012
• Emissions: 6,2 tonnes of CO2 equivalent/inhabitant in 2011
• Water consumption: 112 litres/inhabitant/day in 2014
Sources: Estudio del sector económico del medio ambiente en España 2011 - MAGRAMA
EUROSTAT
5. Business opportunities:
Environment and Water
Public entities Private companies
Environmental Industry in Spain: key players
115
EUROPEAN
ENVIROMENTAL
AGENCY
www.eea.europa.es
• Provides sound &
independent
information
• 32 member countries
SPANISH MINISTRY OF
ENVIRONMENT AND
AGRICULTURE
www.magrama.es
• Makes proposals
and develops the
implementation of
government policy
17 REGIONAL
AUTHORITIES
• Definition and
implementation of
environmental policy.
• Regional
environmental
authorities often
called “Consejerías”
MUNICIPAL
AUTHORITIES
• Subsidies,
Fines refuse
collection, street
cleaning etc.
• Local environmental
authorities, often
called ‘Concejalías’
GROUP ENVIRONMENT WATER
5. Business opportunities:
Environment and Water
The Water sector in Spain (1/2)
116
• Maximum reservoir capacity (2014) 55,977 hm3
• Reserves (October 2014) 35,643 hm3 (63.7%)
• Domestic consumption (2014) 112 liters/inhabitant/day
Water
Origin
Uses Urban Supply 4.485 hm3
Irrigation 15.832 hm3
>700 towns with >2000 inhabitants with no waste water treatment plant
Treatment 3.375 hm³/year of treated waste water by 2.533 WWTP
400-500 hm³/year reused by regeneration systems
Sources: MAGRAMA, INE, AEAS-AGA
Urban Supply
Surface (Dams, rivers…) 67%
Underwater sources 29%
Others (Desalination, depuration) 4%
Irrigation
Surface (Dams, rivers…) 76,9%
Underwater sources 21,5%
Others (Desalination, depuration) 1,6%
5. Business opportunities:
Environment and Water
24,000 companies involved in the water sector
212,300 jobs
Water sector annual turnover: approx. 32,000 million euros
Business
Opportunities
Strengths
Sectorial targets match general interest.
Great quality and innovation in Spanish water industry.
Sector generates employment and wealth.
Large number of products, solutions, high technological level.
International experience and reputation.
Strong sectorial network.
The Water sector in Spain (2/2)
117
Sources: PTEA
Growing demand of water supply & water treatment.
Rising social concern about water use and efficiency.
Demand if integral solutions (EPC + O&M).
Growing investments & financing in developing and emerging countries.
International projection of Spanish water companies.
Excellent public-private cooperation in I+D+i .
5. Business opportunities:
Environment and Water
Desalination
118
• Spain is the 1st producer of desalinated seawater in Europe and America
• Spanish companies are leaders in Reverse Osmosis Technologies.
• Interesting cluster:
• More than 700 desalination plants in Spain according to the Ministry of
Agriculture, Food and Environment.
• International Expertise in constructing desalination plants (Befesa, Cadagua,
Acciona…)
• R&D. Research centers actively involved in desalination:
5. Business opportunities:
Environment and Water
Paper, cardboard
15% Glass 8%
Wood 2%
Bricks 1% Textile
5%
Food waste 7%
Plastics 9% Metals
3%
Organic matter 42%
Other 8%
Composition of Urban Waste
5. Business opportunities: Environment and Water
Waste Management sector in Spain (1/3)
Agriculture & related
5%
Domestic 18%
Services 24%
Mining 19%
Industry 12%
Construction
22%
Waste Generation: Economical sectors
The Spanish Government is currently processing the Residues Framework Plan
(PEMAR) for the period 2015-2020.
By 2016, Spain must achieve a reduction of 47% to 35% in biodegradable urban waste
dumps. This means that additional 5.3 million tons of must be treated.
By 2020 the fraction of recycled/reutilized residues must increase from 30% to 50%.
Waste treatment expenditure still low, 35 euro/Tn (European average 100 euro/Tn)
5. Business opportunities: Environment and Water
Waste Management sector in Spain (2/2)
120
Sources: MAGRAMA, Eurostat
As much as 60% of waste is still dumped, 45% of which is not treated.
Incineration 11%
Compostage, anaerobic digestion
14%
Recycling 15%
Dumping w/treatment
27%
Dumping w/o treatment
33%
Destination of Urban Wastes
Room for improvement, great business opportunities
5. Business opportunities: Environment and Water
Waste Management sector in Spain (3/3)
121
Sources: MAGRAMA, Eurostat
Mixed waste 82%
Biodegradable 4% Packages
3%
Papel & cardboard 5% Glass
3%
Other 3%
Separated 18%
Waste Collection
PEMAR: Separation in origin must improve from current 18%.
Room for improvement, great business opportunities
5. Business opportunities: Chemical Industry
122
Investing in Chemical Industry
123
Main Figures of the Spanish Industry-2014 :
3,000 Companies with a turnover of 56,4billion €
12,4% of Spanish Gross Industrial Product.
540,000 direct and induced high qualified jobs.
High Domestic Consumption of Chemicals (1,200 € /capita).
2nd largest exporter of Spanish Economy with more than 32 billion €.
Spain is Gateway to EU market and EMEA & Emerging Markets.
Leader Sector in Innovation: 25% of Industrial Investment in R&D&I.
Competitive Talent: 118,600€ added value per-employee.
Sustained Growth : 54.5% growth through last 10 years.
Strategic Sector of the Spanish Economy.
4.5% annual growth of Chemical products demand forecasted worldwide
Source: FEIQUE:(Spanish Federation of Chemical Industries)
35.771
49.743 52.585 47.714
53.153 55.657 55.117 55.282 56.400
0
10.000
20.000
30.000
40.000
50.000
60.000
2000 2007 2008 2009 2010 2011 2012 2013 2014Source: INE. Industrial Company Survey, Production and Price Index, and Own elaboration
Evolution of Turnover in the Chemicals Sector 200-2013 (millions €)
Business opportunities: Chemical industry
Gases2,1%
Inorganic2,6%
Organic14,8%
Fertilizers3,6%
Plastic and Rubber RM20,5%
Fibers0,9%
Colorants 1,4%
Pharmaceutical RM5,5%
Pharmaceutical Specialities 21,3%
Agrochemicals 1,9%
Paints and Dyes6,7%
Detergents and Cleaning Products
6,1%
Perfumery and Cosmetics6,1%
Other Consumables6,4%
124
Spanish Industry : Sectoral Specialization (Turnover 2013 (%))
Source FEIQUE: Spanish Federation of Chemical Industries –www.feique.org –National Statistical Office -INE
Business opportunities: Chemical industry
125
Mediterranean Region:
Largest Chemical Cluster in
Southern Europe and Mediterranean
Area: ChemMed in Tarragona. Key
Clusters in Huelva and Algeciras.
Chemical strategic sites in
Valencia and Murcia.
North Chemical Sites:
Cantabria, Asturias, Pays Basque.
Non Coastal Chemical Regions:
Madrid,Aragón,Castilla-León,Castilla
La Mancha.
Investment Locations:
Productive sites and Clusters providing industrial and Logistics
infrastructures.
Business opportunities: Chemical industry
126
Guaranteed Energy Supply and Investment in Infrastructures.
Diversified energy mix with high contribution of renewables.
Secure National Electricity System- 102,281 MW installed power.
Largest gas infrastructures and storage capacity in Europe.
High Public Investment committed to boost freight transport and
intermodal infrastructures and logistics hubs.
Agreement of the Spanish Chemical Industry with the Ministry of
Public works to develop direct connections between rail network
and Production Plants.
Vast Structure of financial programmes for Reindustrialization
and Innovation activities.
Infrastructures - Energy Supply and Investment Support.
Business opportunities: Chemical industry
127
According to FDI Markets Spain Ranks 2nd destination for Research &
Development projects and 5th destination for New Chemical projects (all
business activities) of Multinationals in Europe (period 2004-2014).
Destination
Countries
Research &
Development Manufacturing Headquarters
Design,
Development
& Testing
Logistics,
Distribution
& Retail
Others Total
UK 61 188 26 30 39 87 431
Spain 33 178 15 11 16 39 292
France 28 245 10 17 15 78 393
Germany 23 286 22 22 20 187 560
Ireland 21 67 9 3 25 14 139
Belgium 15 113 6 16 13 34 197
Russia 14 234 4 8 16 88 364
Hungary 13 111 1 - 17 22 164
Sweden 9 39 7 2 7 15 79
Poland 8 193 1 6 16 61 286
Austria 8 41 3 3 8 14 77
Total World 4,320
Country Ranking New Chemical Projects* in number of Projects
Source FDI Markets Data Base. *Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).
Business opportunities: Chemical industry
128
Parent company Projects Capex Avg Capex Jobs Created Avg Jobs Companies
Bayer 11 144.3 13.1 325 29 4
BASF 10 365.3 36.5 448 44 4
Ube Industries 10 498.4 49.8 623 62 3
Dow Chemical 9 722.6 80.3 403 44 2
Novartis 8 665.3 83.2 1,135 141 1
DuPont 7 380.8 54.4 367 52 2
Boehringer Ingelheim 6 118.9 19.8 233 38 2
Sanofi-Aventis 6 163.9 27.3 525 87 2
Messer Group 5 110.3 22.1 139 27 1
General Electric (GE) 5 1,806.3 361.3 1,175 235 3
Michelin 5 180.8 36.2 386 77 1
Solvay 4 113.8 28.4 106 26 2
Merck & Co 4 550.4 137.6 986 246 3
Israel Chemicals (ICL) 4 395.0 98.8 826 206 2
Henkel 4 13.3 3.3 74 18 2
Les Laboratoires Servier 4 30.9 7.7 81 20 2
Hexcel 4 190.5 47.6 165 41 2
Renolit 4 89.1 22.3 72 18 2
AkzoNobel 4 73.6 18.4 160 40 2
GreenChem 3 79.5 26.5 123 41 1
Companies 21 to 163 175 4,740.6 27.1 8,650 49 149
Total 292 11,433.4 39.2 17,002 58 191
New Chemical Projects by Parent Company, investing in Spain in four selected sectors* (millions USD)
292 New Projects have been developed by 163 worldwide Multinationals with a Capital
Expenditure of 11,433.4 millions USD. (period 2004-2014)
Source: fDi Intelligence. * Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).
Business opportunities: Chemical industry
129
Business opportunities: Chemical industry
5. Business opportunities: Nanotechnology
130
Investing in Nanotechnology
131 Source: NanoSpain · Phantoms Foundation
NanoSpain: Spanish Nanotechnology Network (www.nanospain.org) brings together
310 research groups, 50 companies and a research task force of around 2,500
researchers and technicians. Network coordinators: Phantoms Foundation
(www.phantomsnet.net) and CSIC (www.csic.es).
Phantoms Foundation (www.phantomsnet.net) focuses its activities on nanoscience &
nanotechnology and is a key actor in structuring and fostering European excellence and
enhancing collaborations in this field.
100 innovative companies providing a general overview of the sector in Spain
catalogue: http://www.phantomsnet.net/Resources/nanodoc.php?project=1
Spanish N&N Thematic Networks: RENAC (Construction), SUSCHEM
(Sustanaible Chemistry); NANOMED (Spanish Nanomedicine Platform); GENESIS (STP
Nanotechnology and Smart Systems Integretion); MATERPLAT (STP Advanced
Materials and Nanomaterials); and FOTONICA 21 ( STP Photonics).
Nanotechnology Initiatives and Companies in Spain
5. Business opportunities: Nanotechnology
132 Source: Phantoms Foundation www.phantomsnet.net
Research Groups in Nanospain Network ( Regional Distribution July 2012) 334 groups
5. Business opportunities: Nanotechnology
133 Source: Phantoms Foundation www.phantomsnet.net
Emerging N&N in Spain
Nanotechnology Initiatives/ Infrastructures
5. Business opportunities: Nanotechnology
134 Sources: CDTI (Centre for Industrial Technological Development · CSIC (Spanish National Research Council )
In the fields of graphene research Spain occupied the 8th position in the ranking of
countries in published papers 2004-2011. (source Thomson Reuters Global Report
Material Science)
Spain is actively participating in the EU Graphene Flagship. 300 Spanish researchers
are currently working on graphene (source: CSIC - Institute of Materials Science of
Madrid)
CSIC –National Research Council stands 3rd among world wide Institutions in
Graphene research (Thomson Reuters Global Report)
Spanish emerging companies among European leaders in graphene production and
exports. Graphenea (www.graphenea.com), Granph Nanotech
(www.granphnanotech.com) or Avanzare (www.avanzare.es) are developing innovative
processes and advanced products to supply companies as Nokia, Philips, Canon,
Nissan or Sigma Aldrich.
CDTI (Center for Industrial Technological Development) and the Spanish petrochemical
multinational REPSOL have co-invested in the company Graphenea to develop high
quality graphene for international markets.
Research laboratories in Spain are developing advanced products for electronic
applications used by multinational companies like TOSHIBA.
Nanomaterials and Graphene
5. Business opportunities: Nanotechnology
5. Business opportunities: Agro-food
135
Investing in Agro-food
136
5. Business opportunities: Agro-food
Basic data on the food industry
Sector Net sales
(million €)
People
employed
Meat industry 19,499 101,306
Fish processing 4,107 22,622
Fruit and vegetable processing 7,155 39,056
Manufacture of fats and oils 8,427 14,716
Dairy industry 8,322 31,874
Milling products 3,323 7,896
Animal feed products 8,984 15,673
Bread, cakes and biscuits 6,630 96,075
Sugar, chocolate and cocoa 4,788 25,000
Other products 4,827 28,486
Production of alcoholic beverages 9,586 41,548
Mineral water and soft drinks 4,519 15,508
Total 90,169 439,760
Source: Mercasa 2014. FIAB 2014 (2013 Data)
The agrifood sector’s foreign trade in 2014* had a positive
balance:
Food exports value rose to € 37,189 million:
• Fruit and vegetables € 14,333 million
• Meat € 5,109 million
• Fish and seafood € 2,933 million
• Drinks € 3,606 million
Food imports value amounted to € 28,363 million.
Mainly, Spain sold abroad its citrus, its sweet fruits, its
vegetables, its wines and its oils, but also its fish products,
processed meats and many other agrifood products.
Spanish agri-food sector accounts for 90,169 million €
(2013 data) which represents 17% of industrial GDP
Main market for Spanish exports of agrifood products has always been Europe, but since Spain joined the
European Union (EU) that relationship has intensified significantly.
* Estimated data. DataComex
137
5. Business opportunities: Agro-food
Olive oil
Spain is the world's leading producer and exporter of olive oil and table olives, with
the largest acreage devoted to olive groves and the greatest number of olive trees.
World olive oil production
(Thousands Tons)
2012/13 2013/14*
World 2,718 3,098
EU 1,739 2.308
Spain 613 1,768
*Estimate
Source: Mercasa 2014
Wine Spain ranks 1st in the world in wine production and has the
largest surface area of wine grape vineyards in the world.
Main clients for Spanish wines are Germany, France and UK,
followed by Portugal, Russia, United States and Italy.
Spanish wines exports have increased by 6.5% in value.
Spanish Wine and Grape Must
Production 53.5 million hectolitres (2013*)
Exports 18.5 million hectolitres (total value: € 2,628 million)
*Estimate Source: MAGRAMA. MERCASA 2014
138
5. Business opportunities: Agro-food
Subsector Production (th Tn)
Bovine 582
Ovine 119
Goat 9
Porcine 3,440
Poultry 1,370
Rabbit 63
Others 6
Total 5,588
Fuente: MERCASA 2014
•In 2013 there was an overall
improvement of the livestock and
meat produced in prices.
•Exports in 2014 were valued at
€ 5,109 million
Meat
industry
• The Spanish catches reached the 813,200 tons
with an estimated value of 1,785 million Euros.
• The aquaculture production reached 266,700
tones with a value of € 436 million.
• Exports in 2014 were valued at € 2,933 million
Fish
processing
Fuente: MERCASA 2014
139
5. Business opportunities: Agro-food
Fruit &
Vegetables
•Spain is the second largest fruit and vegetable
producer in Europe.
•The value of Spanish fruit and vegetables
amounted to € 15,389 th in 2013.
•Production in Spain reaches 30 million Tn and
exports in 2014* were valued at € 14,333 million
•The main crop is the tomato
•The value generated by this sector in 2013 amounted
€ 2,765 million.
•75% corresponds to cow's milk
•14% corresponds to sheep’s milk
•12% corresponds to goat’s milk
•Exports in 2014* were valued at €1,400 million
Dairy
products
Fuente: MERCASA 2014
* Estimated data. DataComex
* Estimated data. DataComex
140
Shuanghui Group, acquired through the US company Smithfield,
the Spanish company Campofrio.
Chinese multinational company has paid 7,100 million for
Smithfield.
Campofrio, which owns brands such as Navidul, Oscar Mayer and
Revilla, is one of the largest food companies in Spain.
It has 29 production plants in six European countries and more
than 8,000 workers.
The Spanish Ministry of Agriculture, Food and Environment has signed
a cooperation agreement with China's Wahaha, to boost the marketing
of Spanish food products in major cities of China.
Success stories
5. Business opportunities: Agro-food
5. Business opportunities: Real Estate
141
Investing in Real Estate
142
REAL ESTATE: Professionals
INVESTMENT VOLUMEN BY TYPE OF ASSET
Source: BNP Paribas Real Estate, Research Spain.
2013
Spain’s Terciary Real Estate Investment reached € 7,500 Millions in 2014, what it is an
increase of more than 97% between 2013 and 2014.
43%
22%
18%
15%
3%
Retail Others Office Hotel Logistics
32%
34%
8%
15%
11%
Offices Retail Logistics Hotel Others
2014
5. Business opportunities: Real Estate
143
Residential
NEW DWELLING STOCK
(% by Region, 2013)
Source: Bank of Spain, 2015.
664.923
34.580
579.665
43.320
-
100.000
200.000
300.000
400.000
500.000
600.000
700.000
2005 2006 2007 2008 2009 2010 2011 2012
New Dwelling Started New Dwelling Finished
DWELLINGS TRANSACTIONS (units)
413.393 439.591
359.824
318.534 312.593 319.389
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
450.000
500.000
2009 2010 2011 2012 2013 2014
Source: National Institute of Statistics, 2015.
5. Business opportunities: Real Estate
144
Residential
Source: Ministry of Public Works, 2015.
Nominal Housing Price Adjustment Since Peak in
Each Province (%)
National average may not be noteworthy as housing market requires
regional analysis. Nominal price adjustment of residential real estate has
been very heterogeneous between regions.
Higher discounts have taken place in the Mediterranean Coast, in some of
the Canary Islands and in Madrid´s outskirts.
5. Business opportunities: Real Estate
145
Source: Ministry of Public Works, 2015.
FOREIGNERS’ HOME ACQUISTIONS
STILL DEMAND FOR HOLIDAY HOMES?
INCREASING FOREIGN INVESTMENT
After dropping 35% in 2009, the acquisition by residents and non residents rose during
the last five years.
Residential
4,24% 4,45%
6,04%
8,12%
11,15%
13,01%
0%
2%
4%
6%
8%
10%
12%
14%
2009 2010 2011 2012 2013 2014
5. Business opportunities: Real Estate
5. Business opportunities: Tourism
146
Investing in Tourism
Spain, a Major Player in Tourism
147
5. Business opportunities: Tourism
Tourism accounts for 10.9% of GDP in Spain
Generates 11.9% of total employment (about 2 million jobs)
Covers 174% of the Spanish trade deficit (Bank of Spain, 2014)
Receive more than 65 million tourists (2014) (IET/Tourspain 2014)
Travel & Tourism Competitiveness Index top 10
Country 2015 2013
Spain 1 4
France 2 7
Germany 3 2
United States 4 6
U.K 5 5
Switzerland 6 1
Australia 7 -
Italy 8 -
Japan 9 -
Canada 10 8
Source: The Travel & Tourism Competitiveness Report 2015, World Economic Forum (WEF)
40.3% of our tourists have visited Spain ten or more times in their lifetimes
82% are repeat visitors
148
5. Business opportunities: Tourism
2nd country in the world in terms of UNESCO World Heritage Sites
(42 sites).
2nd country in Europe in natural areas (14 national parks, 126
nature reserves) and natural spaces declared UNESCO Biosphere
Reserves (42, behind only the United States with 47).
2nd country, behind USA, in receiving foreign golf tourists, with 431
courses and 884,848 tourists in 2011.
648 Spain Blue Flags Eco-Label Record (2013): Beaches Spain
(551), Greece (393), Turkey(383), France (365) and Portugal (280).
More than 120 spa resorts in mid or high mountain locations.
More than 300 days of sunshine a year and more than 2,000 km of
Green Tracks.
Business opportunities
149
5. Business opportunities: Tourism
HEALTH & WELLNESS
TOURISM
THEMED & LEISURE
PARCS
SMART
TOURISM
CRUISES VACATION
CLUBS
CULTURAL
TOURISM
SPORTS
TOURISM
MICE
GASTRONOMIC
TOURISM RELIGIOUS
TOURISM
NATURE
TOURISM
SUN
TOURISM
LEISURE
TOURISM
URBAN
TOURISM
INTERIOR
TOURISM
Continued expansion and diversification
Increasing number of destinations have opened
up to and invested in tourism
SHOPPING TOURISM
5. Business opportunities: Natural Resources
150
Investing in Natural Resources
151
Spain has one of Europe´s most diversified mining sectors, which produces mostly
industrial minerals and stone.
Spain encompasses almost 90% of the Iberian Peninsula which is considered to be the
most mineralized zone in the European Union as it includes the volcanic massive
sulfide ( VMS) deposits of the Iberian Pyrite Belt ( IPB ).
Leading EU producer of natural sodium sulphate, slate and celestite (strontium
minerals); of the latter, Spain is the second largest producer in the world and the only
one in Europe. Spain is the world's fifth-largest producer of sand and gravel
(industrial), also fifth- largest produces of magnesite ( 3rd in Europe), sixth largest
producer of gypsum ( 3rd largest exporter), and also world´s sixth-largest producer of
fluorspar. Source: Geological and Mining Institute of Spain ( IGME), 2012
Mining and Mineral processing industry contributed 0.8 % of Spain´s GDP ( Banco de España 2012).
Direct Employment: 35,000 people in Spain. Skilled work and
well – developed infrastructure.
Government support: Transparent legislative framework and
positive fiscal environment for the extraction of natural resources.
Long mining tradition and past success in exploration and
mine development.
5. Business opportunities: Natural Resources
152 Source: Geological and Mining Institute of Spain ( IGME)
SPAIN: STRUCTURE OF THE MINERAL INDUSTRY 2012
Commodity Major operating companies and
major equity owners Location of main facilities
Annual capacity
(Th. tons unless
otherwise
specified)
ALUMINA
Aluminio/Alúmina Española S,A,
(AESA)
(Alcoa Inc,, 100%)
Alumina plant at San Ciprian, Lugo 1,450
ALUMINUM Alcoa Inespal S,A, (AISA) (Alcoa
Inc,, 100%) Electrolytic plant at San Ciprian, Lugo 250
Electrolytic plant at Aviles 93
Electrolytic plant at La Coruña 87
CEMENT Cementos Portland Valderribas 7 plants in Spain
15,000
Lafarge SA (Lafarge España )
3 cement factories (Montcada i Reixac, Sagunto and Villaluenga de la
Sagra), 1 cement grinding station (La Parrilla) and eight distribution points
cement also has about 40 concrete manufacturing plants, between plants
fixed and mobile; 2 central exclusive production of mortars and 6
aggregate holdings spread across the Autonomous Communities of
Asturias, Catalonia, Madrid, Valencia and Castile-La Mancha.
46,000
COAL:
ANTHRACITE Antracitas Gaiztarro SA Mines near Oviedo 2,000
Antracitas del Bierzo SA Mines near Leon 1,000
BITUMINOUS Hulleras del Norte SA (HUNOSA) Various mines , Asturias 3,300
Hulleras Vasco Leonesa SA Santa Lucia Mine, Leon 2,000
Minas de Figaredo SA Mines near Oviedo 1,000
ENCASUR Emma Mines , Ciudad Real 60
5. Business opportunities: Natural Resources
153 Source: Geological and Mining Institute of Spain ( IGME)
SPAIN: STRUCTURE OF THE MINERAL INDUSTRY 2012
Commodity Major operating companies and major equity
owners Location of main facilities
Annual capacity
(Th. tons unless
otherwise
specified)
COPPER:
METAL,
CONTENT Iberian Minerals Corp Minas de Aguas Teñidas at Huelva ( MATSA) 2,200
Atlantic Copper S,A,
(Freeport McMoRan Copper & Gold Inc,, 100%) Refinery at Huelva 270
Idem Electrolytic refinery at Huelva 105
Industrias Reunidas de Cobre Smelter at Asua-Bilbao 30
Elmet SL Smelter and electrolytic refinery at Berango, Vizcaya 60
First Quantum Minerals Ltd, 100% - Inmet Mining
Corp, Cobre Las Cruces - Open pit mines in Seville Andalucia 210
Idem Cathode electrowinning at Las Cruces in Seville 72
Lundin Mining Corp,, 100% Aguablanca Mine, Extremadura 7
DUNITE Pasek España S,A, Mines and plant at Landoy, A Coruña 1,500
FLUORSPAR Minerales y Productos Derivados SA (MINERSA) Plant at Torre, Asturias 150
Underground mines at Emilio, Jaimina, and 420
Moscona, Asturias
GOLD Orvana Minerals Corp, ( Kinbauri Gold Corp.) El Valle- Boinas Carles mines, Asturias 3,750 (kg)
MAGNESITE Magnesitas Navarras SA Mine at Eugui, plant at Zubiri 600
Magnesitas de Rubián SA Underground and Mine at Lugo, 70
5. Business opportunities: Natural Resources
154 Source: Geological and Mining Institute of Spain ( IGME)
SPAIN: STRUCTURE OF THE MINERAL INDUSTRY 2012
Commodity Major operating companies and major
equity owners Location of main facilities
Annual capacity
(Th. tons unless
otherwise specified)
NICKEL, METAL, CONTENT Lundin Mining Corp,, 100% Aguablanca Mine at Badajoz near Seville 8
POTASH, ORE Iberpotash S,A, (ICL Fertilizers Europe) -
ICL Israel Mines and plants at Suria near Barcelona 1,100
SEPIOLITE Grupo Tolsa S,A, Mine at Madrid and Toledo and plant at Madrid 1,000
Sepiolsa ( MINERSA ) Mine and plant at near Madrid 200
MYTA (SA de Minería y Tecnología de
Arcillas, del grupo SAMCA Mine and plant in Zaragoza and Segovia 100
SODIUM SULFATE Crimidesa SA Mine and plant at Cerezo de Rio, Burgos 600
Minera de Santa Marta SA ( SANCA ) Burgos ( underground) and Toledo (open pit) 400
Sociedad Anónima Sulquiza ( MINERSA) Madrid 100
STEEL Aceralia Corporación Siderúrgica (Arbed
SA 35%) Plants at Aviles, Gijon, Sagunto, and Sestao 8,000
Compañia Española de Laminacion S,L,
(Celsa), 100% Plant at Barcelona 2,600
Corporación Gerdau Sidenor S,A,
(Sidenor) (Gerdau Group, Plant at Basauri 2,500
50%, and Santander Group, 50%)
STRONTIUM Solvay Minerales SA Mines and plant at Escuzar, Granada 85
TUNGSTEN Almonty Industries Los Santos, Salamanca 125
ZINC, METAL, CONTENT Asturiana de Zinc SA (Azsa) (Xstrata plc,
100%) Electrolytic zinc plant at Asturias 500
5. Business opportunities: Natural Resources
155
Success stories
Canada’s First Quantum Minerals Ltd interested in Cobre
Las Cruces copper mines.
This mine is the largest open pit operation and process plant located in
Southern Spain.).The plant is designed to produce approximately 72,000
tones of copper cathode per year, shipped as final product.
ICL (Israel Chemicals Ltd) announced
the first stage of an efficiency plan for
Iberpotash, which includes increasing
potash granulating capacity to meet increased
demand for granulated potash, as well as
construction of a plant at Suria to produce 1.5 Mt of
vacuum salt for the food and chemical industries.
Execution of this plan was expected to be completed
in early 2014 at a cost of about 160 million euros.
The second project, which had not yet been
approved, would expand Suria’s potash production
capacity to produce 1.1 Mt of potash, of which
630,000 t would be granulated potash and 50,000 t
would be technical potash.
In September 2009, Orvana
Minerals Corp of Canada( OMC )
acquired “El Valle –Boinas/Carles”
( EVBC) cooper and gold mine in northern Spain,
through its acquisition of Kinbauri Gold Corp. The
EVBC was previously mined from 1997 to 2006 by
Rio Narcea Gold Mines. They produced nearly
1,000,000 ounces of gold and over 20,000 tones of
copper prior to the closure of the mine. Production
guidance for EVBC for 2013 is, 63,000 ounces of
gold, 6,000,000 pounds of copper and 200,000
ounces of silver.
5. Business opportunities: Natural Resources
5. Business opportunities: Textile & Clothing
156
Investing in Textile & Clothing
157
5. Business opportunities: Textile & Clothing
Spain is one of the five biggest producers in T&C industry in the EU and
accounting for about three quarters of EU production of textile and clothing.
There are more than 8,500 companies, which are a major employment
generator and provided jobs for 129,000 people in 2014, with an estimated
turnover of € 9.3bn.
Textile and Clothing sector in figures in Spain
Source : Fact Sheets MINETUR 2013
158
5. Business opportunities: Textile & Clothing
Spain Exports of Textile and Clothing sector
Source : Directorate General for Customs / Icex
Spain Imports of Textile and Clothing sector
European Union 68%
America 10%
Asia 12%
Africa 4%
Rest of Europe 6%
Oceania 0%
Rest of the world 0%
European Union 66%
America 9%
Asia 15%
Africa 2%
Resto Europa 8%
Oceania 0%
Rest of the world 0%
159
5. Business opportunities: Textile & Clothing
Spanish companies in T&C sector
The main Spanish companies and brands national in the sector are:
159
160
Foreign companies in T&C sector
Foreign companies and brands with presence in Spain are:
5. Business opportunities: Textile & Clothing
161
5. Business opportunities: Textile & Clothing
Hennes & Mauritz was set up in Spain in 2000. H & M, open the first store in
Barcelona, Glories 6th of April, followed by two additional store openings in Zaragoza
in the shopping centers of Grancasa, April 7, and Augusta, April 13. The fourth
opening was in May month in Barcelona la Maquinista. In fall 2000 was open H&M in
the center of Madrid and in Spring 2001 in Valencia.
H & M expands its commitment to the 'e-commerce' the presence Store 'online' in
Spain in autumn 2014.
«Estamos entusiasmados con la llegada
de H&M 'online' a España este otoño, algo
que nuestros clientes estaban esperando
ansiosos, ya que es el complemento
perfecto para nuestras 150 tiendas de
España y la oportunidad de ofrecer a
nuestros clientes la mejor experiencia de
compra las 24 horas del día», ha asegurado
Doris Klein, directora general de H&M para
España y Portugal.
Source: ABC.es
Success stories
6. ICEX-Invest in Spain
Paseo de la Castellana, 278
28046 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: [email protected]
www.investinspain.org
ICEX / Invest in Spain your partner in Spain
162
Objectives & activities
Who is…
163
• Promote, attract and consolidate foreign direct investment in Spain, with particular emphasis on new investment projects in the industrial, technological and services sectors.
• Facilitate cooperation between international investors and Spanish companies in order to increase and develop their activity in Spain.
• Position Spain as a global platform for international business and investment and as a global, competitive economy. Open to investment and with a wide and diversified business structure and network, human and technological resources which are very competitive for investment and access to EU, North African, Mediterranean, Middle Eastern and Latin American markets.
• Improve the business climate and increase Spain's attractiveness for foreign investment through proposals to improve the regulatory framework and make it easier for companies to invest and do business in Spain.
Invest in Spain is an executive division of ICEX Spain Trade and
Investment, a public company chaired by the Secretary of State for Trade
of the Ministry of Economy and Competitiveness.
Its mission is to attract foreign direct investment (FDI) to Spain. It has an
exterior network of more than 100 Economic and Commercial Offices of
Spanish Embassies facilitating access to potential international investors.
www.oficinascomerciales.es
Personalized advisory service. Customized reports on client needs
Specialized consultancy in legal and technical terms through associated
companies
Advice on all stages of the investment process:
Information on incentives and subsidies for investment projects, on an
European, national, regional and local level.
Establishment of companies, industry regulations, labor and tax
regulations, industrial and intellectual property, administrative
processes, advice on the most appropriate way of obtaining work and
residence permits.
Information on business opportunities and privatization processes.
1. Information and Advice
Personalized support for foreign companies in Spain:
• Identification of strategic and technological partners for each project.
• Organization and coordination of agendas, meetings and investor visits
• Looking for the best location in Spain for each project.
Network of investment attraction agencies: a meeting point for all official
institutions which either on a state, regional or local level are dedicated to
promoting and attracting investment.
2. Support and Management of FDI projects
164
Investor Network, a service which aims to put the Spanish and international capital markets in touch with selected investment opportunities.
Looking for financial partners and managing joint ventures between foreign investors and Spanish companies.
Support in finding incentives and financing, both public and private, for the establishment, development and expansion of companies in Spain.
Invest in Spain manages the Technological Fund, a European program created to promote R+D+i. Non-repayable aid for foreign companies.
Information for foreign investors on privatization processes in Spain.
3. Financing and investor relations
4. Business and development climate
Invest in Spain promotes improved relations between companies and foreign chambers of commerce and Governments, in order to improve comprehension of their interests and needs.
Proposals for legislative and administrative reform which improve the business environment.
Business climate evaluation studies by means of individual interviews and opinion groups comprised of foreign companies established in Spain.
For further information you can follow our Newsletter, guides and publications on topics of interest to investors. 165
Provides advice on the most appropriate way (quickest and least
bureaucratic) to obtain the permits for highly qualified employees,
technical staff, scientists, families, ...
Advice on how to open a branch, create or acquire a company ...
Assessment for transactions that involve immigration issues for
foreigners without residence in Spain
Act as the institutional contact for companies vis-à-vis all Spanish
bodies with powers, such as the Spanish Embassy and Consulates,
Ministry of Employment, Home Office and Regional Immigration
Offices
Services of special interest: Immigration Department
6. Invest in Spain: Investor services
166
6. Invest in Spain: Investor services
167
Services of special interest: Investment Program in R&D Activities
Since 2007 ICEX-Invest in Spain has managed European Regional
Development Funds (ERDF) with the objective of attracting research
and development activities from foreign-owned capital companies to
Spain
For the period 2014-2020 ICEX-Invest in Spain will manage €14 million
budget for projects allocated in Extremadura, Andalucia, Castilla la
Mancha, Canarias, Murcia, C. Valenciana or Galicia
Investment in facilities, equipment, human resources and technology
could be supported up to €200,000 per company in competitive
tenders.
Since 2007 Invest in Spain has supported 127 projects in high value-
added sectors such as Biotechnology, IT, Renewable energies and
Environment
168
Investment & Business Opportunities in selected Spanish Companies
The information provided in this section on the by ICEX-Invest in Spain is a summary based on different
sources: the company, website, databases, etc. This is not a bidding information and ICEX-Invest in
Spain does not assume any responsibility for the information provided.
The potential investor should carry out its own due diligence completing and updating the information
directly with each company.
ICEX-Invest in Spain acts as facilitator, promoting the dissemination of information about business and
investment opportunities in Spain among potential investors. ICEX-Invest in Spain also facilitates the
direct contact between potential investors and Spanish companies or asset managers. ICEX-Invest in
Spain does not take part in the negations between the parties, without precluding the possibility of
advising them if requested.
General Information on companies included in this Report The Information on Spanish and foreign companies included in this Report has been obtained from
public sources, among others, including their web sites, media news, Stock Exchange information and
others. ICEX-Invest in Spain does not assume any responsibility on it.
The inclusion of this companies in this Report is for information purposes only, and does not preclude
the position of this Companies in relation to potential investors either its intention or strategy.
Disclaimer Clauses:
6. ICEX-Invest in Spain
Paseo de la Castellana 278
28046 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: [email protected]
www.investinspain.org
ICEX / Invest in Spain your partner in Spain
169