Are you seeking a project to invest while enjoying in the Mediterranean sun? In this article, we will guide you to discover why Spain could be your next valuable opportunity!
Spain is widely regarded as one of the top choices for foreign investors, entrepreneurs, and professionals, offering a streamlined and efficient business setup process and one of the less restrictive regulations for international investment. It distinguishes itself as an attractive market for individuals seeking to acquire businesses, invest in startups, partner with local enterprises, or explore growth opportunities.
Spain actively encourages investment through financial aid and incentives for specific industrial sectors, certain regions, and innovative Small and Medium-sized Companies, supporting research, development, and innovation activities.
Moreover, Spain distinguishes itself with a moderate corporate tax rate within the Eurozone, standing at 25%. However, the availability of incentives and tax exemptions can significantly reduce the effective tax rate to around 20% [1], making it an appealing prospect for businesses seeking favorable tax conditions.
In 2023, the Spanish economy showed a better-than-expected performance with a growth projection of 2.5%, surpassing the Eurozone and its key trade partners. Factors contributing to this resilience include recovery from the pandemic-induced GDP gap, accelerated investment, and slow growth in nominal unit labor costs compared to prices [2].
Spanish inflation is very sensitive to oil prices. This explains both the sharp rise in 2022 and the abrupt decline in 2023. The projected inflation rate for the whole year in 2023 is 3.6% [2], positioning Spain towards the lower end among OECD countries in terms of inflation rates.
Employment growth remains robust, with a 3% growth rate and an expected decrease in the unemployment rate to 12% in 2023 according to the recent KPMG International Global Economic Outlook (December 2023). However, signals of a slight weakening in the labor market in the latter half of 2023 suggest a nuanced outlook.
Beyond its economic appeal, Spain serves as a strategic hub, providing a gateway to the European Union, the Latin American countries, and facilitating access to the global market.
Besides business, Spain is considered as an ideal destination for expatriates, renowned for its healthcare, education, culture, safety, and tolerance. It ranks among the world’s top countries for life expectancy, according to the OECD, and holds the third position for Living rank in the HSBC Expat Explorer survey [3]. Contributing factors include the renowned Mediterranean diet and the mild climate, creating a conducive environment for a longer and healthier life.
How Advisory34 Can Help:
Whether you’re considering investment, business acquisition, or partnership in Spain, our dedicated team at Advisory34 is ready to assist you in realizing your aspirations. Spain’s thriving economy, coupled with its quality of life, financial incentives, and innovative policies, makes it an exciting destination for those seeking growth and success!
Take the next step in your journey and let’s build your success story together!
