Spain, your partner in Europe_ICEX_August2013

Spain: your partner in Europe

Global Market Access from an International Economy

Investment Framework
Business Opportunities

August 2013

0

INDEX
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 Labor Force and Competitive Costs
Quality of life: Expat setting up

5.

Business Opportunities

6.

ICEX / Invest in Spain

1

1. Spain: a highly internationalized economy

2


Spain is the world’s 13th largest economy and the 5th largest economy in the EU:
GDP worth 1.5 trillions USD
GDP comparison of major economic regions,
USD billions
EU 27: 16,584

NAFTA: 18,681
Asia: 18,296

Germany:
3,401
France:
2,609

UK:
2,441

Italy:
2,014

Spain:
1,352

USA:
15,685
Japan:
5,964

ASEAN-5:
1,828

Australia:
1,542

BRICs: 14,470
Source: IMF, 2013. Data Referred to 2012

NIEs:
2,086

Canada:
1,819

Mexico:
1,177

Rusia:
2,022

China:
8,227

Brazil:
2,396

India:
1,825

3


Spain is the 8th largest exporter of commercial services worldwide, 4th in the EU, and
the 20th-ranked exporter of merchandise trade.
Merchandise Trade Exports
USD Millions

Commercial Services Exports
USD Millions
Country

2012

2012/2011
(%)

1

USA

613,796.2

4.3%

2

UK

278,212.4

-4.0%

3

Germany

254,521.5

-2.1%

4

France

208,179.5

-6.8%

5

China

190,000.0

4.3%

6

India

147,613.9

7.7%

7

Japan

139,765.9

-2.0%

8

Spain

139,510.3

-1.2%

9

Singapore

133,157.5

3.3%

126,477.8

-6.7%

4,346,900

1.6%

10 Netherlands
TOTAL

Source: World Trade Organization (WTO), 2013.

Country
1
2
3
4
5
6
7
8
9
10

China
United States
Germany
Japan
Netherlands
France
Korea, Republic of
Russian Federation
Italy
Hong Kong, China
…
20 Spain
…
World

2012

2012/2011
(%)

2,048,814.0
1,547,283.0
1,407,098.2
798,567.2
655,840.9
569,065.3
547,869.8
529,255.0
500,239.2
493,366.0
…
292,205.8
….
18,323,000

0.2%
7.9%
4.5%
-4.5%
-3.0%
-1.7%
-4.6%
-1.3%
1.4%
-4.4%
…
-6.8%
…
-100.0%


4

Spain, strong and sustainable external sector performance
A competitive combination: technology, innovation, productivity and lower Unit Labor Cost
have lead to a competitiveness based expansion of exports during the last three years.

Export of good and services, 2005-2013

Source: Eurostat, 2013.

5

While the world export market share of the US, UK, France and Italy has declined during
last decade, due to competition from emerging countries, the Spanish share of world
merchandise exports has remained stable.
Country share in world export of merchandise trade,
1985-2012
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%

Brazil
Italy

China
Russia

France
Spain

Germany
UK

India
USA


6

Spanish and foreign companies established in Spain focus on EU markets, but are
increasing their exports and business towards Latin America, USA, Asia, Russia, Africa
and Middle East using Spain as a platform for Global Business.
Trade balance surplus both with the EU and the Euro Area.
Increasing market diversification: 62.8% of exports sold in the EU in 2012 vs.
68% in 2009 (Euro Area: 57% down to 49.5% in 2012 )
Breakdown of Merchandise Trade by
Recipient Region

Source: Datacomex and Bank of Spain, 2013.
7

Tourism: Spain is the 2nd country worldwide in revenues and the 1st in Europe and
ranks 4th in arrivals worldwide.

GENERATED REVENUE
(INTERNATIONAL TOURISM)
País
1
2
3
4
5
6
7
8
9
10

2012
(Bill USD)

2012/2011
(%)

USA
Spain
France
China
Macao
Italy
Germany
United Kingdom
Hong Kong
Australia
World

126.2
55.9
53.7
50.0
43.7
41.2
38.1
36.4
32.1
31.5
1,075

9.2%
-6.6%
-1.5%
3.2%
13.7%
-4.2%
-1.9%
3.7%
16.0%
0.2%
3.2%

INTERNATIONAL TOURIST ARRIVALS

Source: WTO, 2013. Tourism Highlights.

País
1
2
3
4
5
6
7
8
9
10

France
USA
China
Spain
Italy
Turkey
Germany
United Kingdom
Russia
Malasya
TOTAL

2012
(Mill. People)

2012/2011
(%)

83.0
67.0
57.7
57.7
46.4
35.7
30.4
29.3
25.7
25.0
1,035

1.8%
6.8%
0.3%
2.7%
0.5%
3.0%
7.3%
-0.1%
13.4%
1.3%
4.0%

Source: WTO, 2013. Tourism Highlights.

8

Spain has the 12th largest accumulated inward FDI stock and is the 11th largest
investor in the world.
Outward FDI stock,
USD Millions

Inward FDI stock,
USD Millions
Economy
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

United States
Hong Kong SAR
United Kingdom
France
Belgium
China
Germany
Brazil
Singapore
Switzerland
Canada
Spain
Australia
Netherlands
Russian Federation
Sweden

British Virgin Islands
17
18 Italy
19 Mexico
20 Ireland
World
Source: UNTAD, WIR, 2013.

Inward FDI stock 2012
Mill USD
3,931,976
1,422,375
1,321,352
1,094,961
1,010,967
832,882
716,344
702,208
682,396
665,596
636,972
634,539
610,517
572,986
508,890
376,181

Share
17.2%
6.2%
5.8%
4.8%
4.4%
3.7%
3.1%
3.1%
3.0%
2.9%
2.8%
2.8%
2.7%
2.5%
2.2%
1.6%

362,891

1.6%

356,887
314,968
298,088

1.6%
1.4%
1.3%

22,812,680

100%

Economy
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

United States
United Kingdom
Germany
France
Hong Kong
Switzerland
Japan
Belgium
Netherlands
Canada
Spain
Italy
China

Outward FDI stock
2012
Mill USD
Share
5,191,116
22.0%
1,808,167
7.7%
1,547,185
6.6%
1,496,795
6.3%
1,309,849
5.6%
1,129,376
4.8%
1,054,928
4.5%
1,037,782
4.4%
975,552
4.1%
715,053
3.0%
627,212
2.7%
565,085
2.4%
509,001
2.2%

British Virgin Islands

433,588

1.8%

Australia
Russian Federation
Sweden
Singapore
Ireland
Brazil

424,450
413,159
406,851
401,426
357,626
232,848

1.8%
1.8%
1.7%
1.7%
1.5%
1.0%

World

23,592,739 100%

Source: UNTAD, WIR, 2013.
9


Spain: Inward FDI by country
Stock : EUR Millions
País

USA, UK, Germany, France and Italy
Companies are the largest investors in
Spain.
Increasing interest of companies
from Asia (especially from China,
India, Korea and Japan) Latin America
(especially from Mexico and Brazil) and
from the Middle East Countries.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

USA
ITALY
FRANCE
UNITED KINGDOM
GERMANY
MEXICO
LUXEMBURG
PORTUGAL
NETHERLANDS
SPAIN
SWITZERLAND
BRAZIL
UAE
SWEDEN
CANADA
JAPAN
BELGIUM
COLOMBIA
ISRAEL
DENMARK
IRELAND
URUGUAY
ARGENTINA
SAUDI ARABIA
NETHERLANDS ANTILLES
OTHER
TOTAL

STOCK 2011
75,073.6
49,037.8
37,633.0
35,001.4
29,142.3
22,835.5
20,167.9
17,596.2
16,844.1
16,487.8
10,247.9
7,601.2
5,221.0
4,689.8
4,242.0
3,004.9
2,355.8
2,327.5
1,296.9
1,135.5
1,135.4
980.3
947.1
875.7
850.7
10,808.4
377,539.6

% total
2011
19.9%
13.0%
10.0%
9.3%
7.7%
6.0%
5.3%
4.7%
4.5%
4.4%
2.7%
2.0%
1.4%
1.2%
1.1%
0.8%
0.6%
0.6%
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
2.9%
100.0%

Source: Registro de Inversiones, 2013. Data Refered to 2011
10

Spanish companies are among leading companies in the world:
3 out of every 5 flights world-wide are controlled
using Spanish air navigation systems.
Telefonica
is
one
of
the
largest
telecommunications companies in the world (by
market capitalization and number of customers).
Santander Bank is the 1st in the euro zone (by
stock market capitalization) and BBVA now operates in
40 countries.
IBERDROLA is the 4th largest utility company in
the world (by market capitalization).
In 2012, 6 of world’s top 10 concession companies
are Spanish and held 36% of the world´s
infrastructure concessions.
The Al Shoula Group, a Spanish-Saudi consortium,
will manage the high-speed train between La Mecca Medina.
The Panama Canal expansion project has been
awarded to Spanish-led consortium
11

Spain is the 6th most open country to Foreign Investment according to OECD’s FDI
Restrictiveness Index

12

Over 12,800 foreign companies are currently located in Spain across all
economic sectors
70 of the FORBES Top 100 companies have branches in Spain

13

2. Market Access
Domestic market of over 47 million consumers: Spain has a GDP per capita (PPP)
above the EU-27 average.
Spain grants free access to the world´s
largest market, the European Union: more
than 500 million consumers

Advantages to operate in EU:
Intra-European duty free market.
The free movement of goods &
services, capital and persons.
Single currency: EURO.

Country
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

GDP
Billions $

United States
China
Japan
Germany
France
Brazil
United Kingdom
Italy
Russian
Canada
India
Spain
Australia
Mexico
Korea

15,094.0
7,298.1
5,869.5
3,577.0
2,776.3
2,492.9
2,417.6
2,198.7
1,850.4
1,736.9
1,676.1
1,493.5
1,488.2
1,154.8
1,116.2

GDP Million per
capita
RK Thousand $
14
48,387
80
5,414
18
45,920
20
43,742
19
44,008
52
12,789
22
38,592
25
36,267
51
12,993
9
50,436
111
1,389
27
32,360
6
65,477
60
10,153
35
22,778

Source: WEF 2013

15

2. Market Access
The best European platform for doing business with Latin America:
15 Agreements to Avoid Double
Taxation Bolivia, Brazil, Chile, Colombia, Costa
Rica, Cuba, El Salvador, Ecuador, Mexico, Panama
Peru*, Rep. Dominicana,* 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, Rep. Dominicana,
Trinidad and 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

16

2. Market Access
Why is Spain a perfect hub for doing business in Latin America?
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.

17

2. Market Access
Spain is the world´s 2nd largest investor in Latin America, ( 2nd only to the USA and the
1st among European countries.
Latin America and the Caribbean: origin
of FDI
USA
22%
Others
40%

Japan
4%

Spain
10%

Canada
5%

Latam
9%

Netherlands
10%

EU: Origin of FDI in Latin America and
the Caribbean
80,000
71,024
70,000
60,000

Source: ECLAC, 2012, Figures from 2007 to 2011.
50,000
40,000
30,000

24,091

20,661

20,000

19,136

18,493

10,000
8.010
0
Spain

Netherlands

France

UK

Italy

Germany

Source: ECLAC, 2012. Figures from 2007 to 2011.
18

2. Market Access
Many Spanish companies have a strategic position in key sectors in Latin America
(ICT, Energy, finance, infrastructures, etc.)

19

2. Market Access
Some multinational companies establish themselves in Spain for managing their
operations in Latin America or in the EU.

And 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.

20

2. Market Access
Spain is the nearest European market for doing business with North- African and
Mediterranean countries:

•4 Agreements to Avoid Double Taxation : Morocco, Algeria, Tunisia, Egypt.
•5 Agreements for Protection And Promotion of Reciprocal Investments Morocco,
Algeria, Tunisia, Libya, Egypt.

• Euro-Mediterranean
Association Agreements with
Egypt, Israel, Jordan, Lebanon,
Morocco, Tunisia and Algeria for
the gradual liberalization of
trade in the Mediterranean area.
Euro-Mediterranean Association Agreements
Agreements for Protection and
Promotion of Reciprocal
Investments

Agreements to Avoid
Double Taxation

21

2. Market Access
Key Role of the Spanish Canary Islands Special Zone (ZEC) as a commercial and
logistic hub with Africa

Geostrategical location: In the Southernmost
border of the European Union (EU)
Strong historical and commercial ties with Africa
and America
Authorised by the European Commission in
January 2000
Tax advantages for ZEC entities.
Europe’s most advantageous tax regime (4% corporate tax rate).
Excellent communications and services infrastructure.
Interesting tricontinental logistic platform to Africa, Latin America
and Europe

www.zec.org

22

2. Market Access
Top ranking destination cities by investment projects 2011
Global Location Trends. IBM Global Business Services 2012

Source: Global Location Trends. IBM Global Business Services. 2012. (Projects of less than 10 jobs were not included
23

3.

Macroeconomic
reforms

situation

and

structural

24

3. Economic policy and structural reforms
During 2012 the Spanish economy underwent a significant adjustment and is in
process of correcting accumulated imbalances

.

25

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 envisaged for 2013.

Measures to increase income and reduce expenditure at all levels, with the firm aim of
achieving the deficit goal agreed with the EU.
Spain has achieved the biggest reduction in the primary structural balance of all the
major advanced economies.

Net Lending (+) / Borrowing (-) of the General Government
In percent of GDP
2012 2013
Central Government
-4,1
-3,7
Social Security
-1,0
-1,4
Autonomous Regions
-1,8
-1,2
Local Governments
-0,2
0,0
General Government
-7,0
-6.3

2014
-3,5
-1,0
-1,0
0.0
-5.5

2015
-2.8
-0,6
-0,7
0.0
-4.1

Source: Ministry of Economy & Competitiveness. Excluding impact on
EDP deficit resulting from Financial Sector recapitalisation

2016
-2,0
-0,5
-0,2
0.0
-2,7
26
26

Financial system reform
Spanish financial sector was seriously damaged by the real state bubble and the
recession that followed.
In the Spanish Financial System, Entities could be divided in two groups.
The core of the financial system is mainly composed of the largest and
internationalized Spanish Banks with an outstanding performance during the
financial crisis.
The local saving banks – Cajas de Ahorros- has shown structural vulnerabilities
and the highest exposure to real estate. The Government has undertaken a
restructuring process.
In the last two years the provisioning system has been redressed and the
restructuring process has taken fast pace.
Transparent and independent evaluation of the IMF and external risk evaluation of
the whole asset portfolio. 70% of the Spanish financial sector is sound and doesn’t
require additional capital.
Increase in provisions and capital buffers on real-state exposure: Coverage of real
estate assets raised from 18% in December 2011 to 45% in December 2012.
The total number of entities in the financial sector, excluding credit cooperatives and
foreign branches, has decreased from 50 in 2009 to 12 in 2012.
27
27

Labour Market Reform:
Fostering labor flexibility and productivity at company level.
Firm-Level wage 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
Simplification and clarification of the regime of 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

Recent trends in the labor market
The labor market is adapting rapidly, spurred by recent legislative initiatives: more
part‐time jobs & lower percentage of employees with temporary contracts, as well as
decelerating nominal and real wages
Sharp reduction in Unit Labor Costs as a continuation of decreasing wages in some
sectors and sharp increase in labor productivity
28

Measures to foster growth, competitiveness and entrepreneurship
Guaranteeing the Domestic Market: Any product or service lawfully produced in one
region may be offered at national level without additional paperwork.
Liberalization of the retail sector. No restriction on commercial opening hours in
areas of commercial attractiveness; increase of the number of opening days.
Liberalization 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.
Internationalization agency. Centralization of all public export promotion instruments.
Set-up of a Commissioner for the Spain Brand, in order to strengthen our country’s
reputation abroad and promote the visibility of our companies.
Developing science and innovation. Creation of a State Agency for Research.
National Commission of Markets and Competition: incorporates all sector regulatory
bodies and the National Commission of Competition .
Strengthening of the Tourism Sector: A comprehensive National Tourism Plan (PNIT)
for the period 2012-2016 has been approved.
Further liberalization of the Energy, Telecommunications and Transportation sector.

29
29

The first results
For the first time in 14 years, the Spanish economy needs no external financing. In the
third quarter of 2012, Spain achieved a current account and capital surplus totaling 2.88
billion €. In 2008 – four years ago—our foreign deficit was 10%.
During 2012, Spain's productivity/cost ratio became the second-best in the entire EU.
Labor costs in Spain have been reduced by 3%, and the product/employee ratio has
risen another 3%.
Rapid expansion of the external sector:
Wage moderation has resulted in a competitiveness based expansion of exports
during the last three years.
Surplus trade balances in non-energy goods with the EU and Euro Area.
Geographical diversification of exports of goods: 60% of exports to the EU in 2012
vs. 68% in 2009.

30
30

For more information about macroeconomic
situation and economic policy visit:
www.tesoro.es

and
www.thespanisheconomy.com

31

4. Business climate
o Infrastructure and Technology
o Incentives and taxes
o Human capital: Productivity, Skilled Labor
Force and Competitive Costs
o Quality of life: Expat setting up

32

4. Business climate
o

Infrastructure and Technology

33

4. Business climate: Infrastructure & Technology
Airport Network
250 airlines have scheduled flights, operating out of the country’s 47 airports, being
Madrid and Barcelona the main hubs.

Country

Source: Eurostat 2011

Passengers on board

United Kingdom
Germany
Spain
France
Italy
Netherlands
Switzerland
Greece
Norway
Sweden
Portugal
Denmark
Belgium
Austria
Ireland
Poland
Finland
Czech Republic

201,956,096
177,123,079
165,667,780
132,801,895
117,523,374
54,198,877
41,555,818
33,769,199
32,959,146
29,949,930
27,246,741
25,947,905
25,392,544
25,284,604
23,366,097
20,676,295
16,448,435
12,824,895
34
34

Railway Network
Spain is the 3rd largest worldwide (1st in Europe) in High-Speed Network and the European
leader with almost 2,000 km in service. And total railway network of 13,500 km.
According to The Global Competitiveness Report (World Economic Forum), Spain has one of
the best indices of Quality of railroad infrastructure in the world, and subway system in major
cities.
High Speed Lines in the World (Kilometers)
0

2000

4000

6000

8000

China
Japan
Spain
France
Germany
Italy
Turkey
South Korea
USA
Taiwan
Belgium
Netherlands
UK
Switzerland
Source: International Union of Railways. Data Refered July 2012
35
35

Road Network
Spain is the 1st largest EU highway network with 14,262 km. According to The Global
Competitiveness Report (World Economic Forum), Spain has one of the best indices of
Quality of roads in the world.
Length of Motorways (Kilometers)
0

5.000

10.000

15.000

Spain
Germany
France
Italy
UK
Portugal
Belgium
Austria
Switzerland
Croatia
Poland
Finland
Slovenia
Czech Rep.
Bulgaria
Slovakia
Norway
Romania
Lithuania
Cyprus
Estonia
36
36

4. Business climate: Infrastructure
Main Port Facilities
Excellent maritime connections, with 46 ports on both the Atlantic and the Mediterranean
coasts, with 3 ports among the Top-15 ports of containers in Europe (Valencia, Algeciras
and Barcelona). According to The Global Competitiveness Report (World Economic
Forum), Spain has one of the best indices of Quality of port infrastructures in the world.
Container traffic for European ports (in TEU)

Source: European Sea Ports Organisation. Ranking based on TEU
(total number of actual twenty-foot equivalent units) of 2011

Port
Rotterdam
Hamburg
Antwerp
Bremerhaven/Bremen
Valencia
Bahía de Algeciras
Felixstowe
St-Petersburg
Marsaxlokk
Gioia Tauro
Le Havre
Zeebrugge
Barcelona
Genoa
Piraeus
Southampton
La spezia
Las Palmas
Marseille

Country
Netherlands
Germany
Belgium
Germany
Spain
Spain
United Kingdom
Russia
Malta
Italy
France
Belgium
Spain
Italy
Greece
United Kingdom
Italy
Spain
France

2011
11,876,921
9,014,165
8,663,947
5,915,487
4,327,371
3,602,631
3,248,634
2,365,174
2,360,000
2,338,000
2,215,262
2,206,681
2,013,967
1,847,102
1,680,133
1,588,553
1,307,274
1,287,389
944,047
37
37


81 Technology Parks, hosting over 6,030 companies.

The main sectors of the companies
located in the Parks
ICT
Medicine/Health
Technology centres/R&D
Agriculture/Biotechnology
Aeronautics/Automotive
Business Centres

Engineering/Consultancy
Energy/Environment
Industrial
Training/Human Resources
Electronics
Others
23%

28%

1%
2%

3%
4%

14%
4%

5%

5%

5%

6%

Source: Association of Science and Technology Parks of Spain 2011

38
38

Technology Adoption by Companies
Whatever the company size, Spain leads the field in technologically enabled companies
Broadband penetration in Business
(% of companies with broadband access)

ICT Infrastructures in Spanish
Businesses

100
90

Computer

80

100

70

Internet

80

Local Area Network

60
60

40
50

20
E-Mail

40

Wireless LAN

0

30
20

Other Technologies

Broadband

10

Mobile Phones
EU-27

PT

IT

NL

BG

GE

SE

FN

UK

FR

MT

ES

0

Total

Source: Eurostat – Community Survey on ICT usage in enterprises, 2011 (Data 2010)

10 to 49

50 to 249

250 or more

Source: ONTSI, based on INE 2011
39
39

Broadband: European Comparison
25.000.000

100%

22.500.000

90%

17.500.000

Brodband Lines

80%

Broadband Lines and Penetration Rate in
the EU27, lines/100 inhabitants

70%

15.000.000

60%

12.500.000

50%

37%

10.000.000
31%

29%

7.500.000

31%
28%

28%28%28%

30%

25%

24%

21%
18%

5.000.000

40%

36%

18%

17%

21%

20%
16%

20% 19%

17%17%

13%

11%

Lines/100 inhabitants

20.000.000

20%

13%

2.500.000

10%

0

0%
MT

CY

LU

EE

LV

SI

SK

LT

IE

Source: XIV Implementation Report, European Commission, 2010

EL

HU

FI

CZ

PT

AT

DK

BE

SE

PL

NL

ES

IT

FR

UK

DE

40
40

4. Business climate
o

Incentives and taxes

41

4. Business climate: Incentives & taxes
Main incentives for productive investment
Regional incentives 2011-2013.
Grants from Ministry of Finance and Public Administration

40%
30%
20%
15%
N

Extremadura, Canarias
Andalucía, Castilla la Mancha, Galicia
Asturias, Castilla y León*, Murcia, Ceuta y Melilla
Aragón, Cantabria, Comunidad Valenciana*
Cataluña, Baleares, Rioja, Madrid, Navarra, País Vasco

There are other regional and local incentives available in all Autonomous Communities
42
42

Spain has got many Institutions that promote incentives in different calls along the year
R&D&i:
•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 S.E. of Innovation in the Ministry of Economy and Competitiveness (MINECO) also offers support with
grants and loans for technological projects developed by companies and public organisms
•INVEST IN SPAIN/ICEX has developed a programmed for supporting foreign companies up to € 200,000 for
investments with a high degree of R&D in competitive tender
•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 the 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
43
grants and loans

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.
0,5
0,4
0,4

Large firms
0,425…

0,3
0,3
0,2
0,2
0,1
0,1
0,0
-0,1

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.

2. In addition, the Spanish CIT law introduced a patent box type of incentive. Under this
regime 50% of revenues arising from the letting of the right to use certain qualifying
intellectual property (IP) rights are tax-exempt.

44

Incentives for hiring people
Training Contracts Incentives: Reduction in the employer's social security contribution
Company Size
Less than 250 employees

New contract

Annual Amount (€)
100%

More than 250 employees

Term

75%

Throughout the term of the contract
Employee<30 years

1,800 € yearly for women
Conversion of Training, Apprenticeships Contracts
into Permanent Contracts

All

3 years

1,500 € yearly for men


100% for common contigences

More than 250 employees


Partial-Time contracts linked with training activities

1 year + 1 year plus

Hiring Incentives: Reduction in the employer's social security contribution
Company Size
"First young job" contract
All

Employee<30 years

Annual Amount (€)
700 €/yearly for women
€/yearly for men

Term
500

3 years

Apprenticeship contracts for first jobs
All

50% for common contingences

Throughout the term of the contract

Employee<30 years
Companies with less than 50 workers
hiring unemployed


3 years

16>Employee<30

Average of 1,200 €

Employee>45 years

Average of 1,400 €

Companies with up to 9 workers hiring unemployed
Up to 9 employees


1 year

Employee<30 years

Source: Ministry of Employment and Social Security
45

Taxes: moderate tax burden
The comparative analysis shows that Spain is a country with a relatively moderate
tax burden. (32.4% GDP)
Countries UE. Tax Revenues (Including Social Security Contributions ) as a percentage
of GDP
60,0
50,0
40,0
30,0
20,0
10,0
0,0

46

Taxes: moderate tax burden
1. A favourable tax rate on corporate income (30% and 25% for SMEs), below USA and
OECD average
2. An attractive allowance and deduction system in corporate tax (19.4% effective rate).
3. The tax system for foreign workers: fixed rate of 24.75% (up to maximum of 600,000 €).

Total Tax Rate of a Company in Europe
(Including Corporate, Labor and Other Taxes)

Italy

Estonia

France

Belgium

Austria

Sweden

Hungary

Czech Republic

Slovak Republic

Germany

Greece

Romania

Poland

Lithuania

EU & EFTA Average

Portugal

Malta

Norway

Finland

Netherlands

Spain

Latvia

United Kingdom

Slovenia

Iceland

Switzerland

Bulgaria

Denmark

Ireland

Cyprus

Luxembourg

80
70
60
50
40
30
20
10
0

Source: Paying taxes 2013 (PwC & World Bank)
47

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 (85 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.
Main Investors in Spanish ETVEs
40.000.000,00
35.000.000,00
30.000.000,00
25.000.000,00
20.000.000,00
15.000.000,00
10.000.000,00
5.000.000,00
0,00

48

4. Business climate
o
o

Human capital: Productivity, Skilled Labor
Force and Competitive Costs.
Decreasing Unit Labor Costs.

49

4. Business climate: Human Capital:
productivity and skilled labor cost
Labor Costs
Labor cost in Spain are below the EU-27 average
UNIT LABOR COST
Evolution 2011-2012
Index, 2005=100
170
160
150
140
2011

2012

130
120
110
100
90

Index, 2005=100
Source: Eurostat. June 2013

50

Labor Costs
Unit Labor Costs more competitive than main European economies
UNIT LABOR COST EVOLUTION, 2007-2012
Index, 2005=100
125

120

115

Spain
110

Germany
France
Italy

105

United Kingdom

100

95
2007

2008

2009

2010

2011

2012

Source: Eurostat. June 2013
51

Compensation of employees
Spain has the lower compensation of employees* in comparison with main European
economies
COMPENSATION OF EMPLOYEES
Millions € (current prices)
400.000
350.000
300.000
250.000
200.000

Germany
Spain

150.000

France
Italy

100.000

United Kingdom

50.000
0

Source: Eurostat . June 2013. Data: Millions € (at current prices)
*Compensation of employees consists of wages and salaries, and of employers' social contributions

52

Salaries and wages in Spain
Average salaries by department for different sectors at Medium Companies (Turnover: 25-50 M€;
Employees:151-500)
AVERAGE SALARIES BY DEPARTMENT FOR DIFFERENT SECTORS AT
MEDIUM COMPANIES
Thousand €

100
90
80
70
60
50
40
30

Executive Director/National/Chief
Division Director

20

Manager/Head of Department

10
Officer/Programmer/Technician

0

Source: “Salary Survey 2013”. Group ODE. Data: Thousand €
53

Labor Productivity
Spanish Labor Productivity is better than EU-27 Labor Productivity
LABOR PRODUCTIVITY
% change on previous period
4,0

3,0

2,0

1,0
EU 27
Spain

0,0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-1,0

-2,0

-3,0
Source: Eurostat. June 2013. Data: % change on previous period
54

Social Security Costs
Employer contribution rate: 30.9% applied to a threshold. The effective rate is lower: i.e
for a gross Wage of 60,000 € Year : effective rate: 18%
Incentives for certain hiring and training contracts applied to reduce employers’ S. Security
Contribution
Contribution to S. Security

Group 1 Employer S. Security Contribution

1.000 €

1,058.54 €

800 €
30.9%
600 €
324.91 €

400 €
200 €

<1,051.4 €

1,051.5 €

3,425.6 €

>3,425.7 €

Monthly Salary

If the monthly salary is higher than the maximum contribution base, the Social Security
rate applies to this maximum contribution base, being the effective rate lower.
Source: Ministry of Employment and Social Security
55

Business Schools
IE Business School holds the No. 1 position in the 2012 Financial Times ranking of
European business schools
3 year
2012
average
Rank
rank
1
4
2
1
3
3
4
3
5
7
6
6
7
5
7
12
9

7

10

10

School name
IE Business School
HEC Paris
London Business School
Insead
Esade Business School
Iese Business School
IMD
University of St Gallen
Rotterdam School of Management, Erasmus
University
ESCP Europe

11
12
SDA Bocconi
12
11
University of Oxford: Saïd
13
17
Warwick Business School
14
14
Vlerick Business School
15
15
EMLyon Business School
16
14
City University: Cass
16
16
Cranfield School of Management
18
17
Imperial College Business School
19
14
Essec Business School
Source: Financial Times 2012
20

19

Stockholm School of Economics

Country
Spain
France
UK
France/Singapore
Spain
Spain
Switzerland
Switzerland
Netherlands
France/UK/Germany
Spain/Italy
Italy
UK
UK
Belgium
France
UK / UAE
UK
UK
France/Singapore
Sweden/Russia/
Latvia

56

Business Schools
Spanish Business Schools have three MBA programs among the top 25 in the world
Global MBA ranking 2013
School name

2013 Rank

Country

1

Harvard Business School

USA

2

Stanford Graduate School of Business

USA

3

University of Pennsylvania: Wharton

USA

4

London Business School

UK

5

Columbia Business School

USA

6

Insead

France/Singapore

7

Iese Business School

Spain

8

Hong Kong UST Business School

China

9

MIT:Sloan

USA

10

University of Chicago: Booth

USA

11

IE Business School

Spain

12

University of California at Berkeley: Haas

USA

13

Northwestern University:Kellogg

USA

14

Yale School of Management

USA

15

Ceibs

China

16

Dartmouth College:Tuck

USA

16

University of Cambridge: Judge

UK

18

Duke University: Fuqua

USA

19

IMD

Switzerland

19

New York University: Stern

USA

…

…

…

22

Esade Business School

Spain

Source: Financial Times 2013

57

Highly skilled labor force
Spain ranks 4th in Europe in number of persons with a scientific/technical tertiary
education, just behind Germany, United Kingdom and France
Human Resources in Science & Technology with tertiary
education, 2012
20.000
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0

Source: Eurostat. July 2013. Data: Thousands
58

4. Business climate
o

Quality of life: Expat setting up

59

4. Business climate: Quality of life
Foreign Schools
There are currently 175 international schools in Spain, including 111 English spoken
Schools, 24 French Schools and 19 German Schools, among others

Foreign Schools 2013
120

100

96

80

60

40
24
20

19

15
5

5

4

2

1

1

1

1

1

0

Source: Ministry of Education, Culture and Sports, 2013
60


Spain is the 1st country in Europe in terms of quality of life for expats and 3rd
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 foreignborn, 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
Favorable 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

61


Expat Experience. League table of selected OECD countries

Country

Overall Experience

Overall quality of life

Overall integration

Overall setting up

Spain

1

1

1

4

Switzerland

2

2

11

9

Germany

3

3

5

7

Australia

4

7

4

1

France

5

5

3

8

Canada

6

9

7

2

New Zeland

7

8

13

3

Belgium

8

6

9

10

United Kingdom

9

12

2

5

Netherlands

10

4

12

12

USA

11

11

8

6

Italy

12

10

6

11

Japan

13

13

10

13

Source: Own elaboration based on The Expat Explorer Survey 2012.(HSBC)

62

5. Business opportunities
o

ICT (Information and Communication Technologies)

o

Biotechnology, Pharmacy and Life Sciences

o

Aerospace

o

Automotive

o

Logistics and Transport

o

Environment and Water

63

5. Business opportunities: ICT

64

Information and Communication Technologies Industry in Spain
Spain is the fifth ICT market by volume in Europe: € 101 Billion
The ICT income as a ratio of GDP has been 9.5% in 2011. The gross added value at
market prices represents almost the 5.7% of GDP [1]
Innovation investment (R&D&I)* in the ICT sector has almost doubled (x1.9) over the
period 2003-2009. ICT’s investment in R&D accounts for 40% of the total amount
invested by the private sector in Spain
There are almost 30,000 ICT companies, including digital content, operating in Spain.
The sector is currently[2] employing over 440,000 workers.
ICT Sector Turnover 2011 (€ million)
Other
Production
3,3%
4,0%

Telecom. Services

Commerce
15,6%

33,6%

€100,828M
Digital Content

16,0%

27,5%
Source: ONTSI, 2012. Data 2011

Information Technologies
Sources

[1]:

EITO (European Information Technology Observatory), 2011;

[2]:

ONTSI (Spanish Observatory for the Telecommunications and Information Society), 2012. Data 2011

65


Spanish companies are present and recognized in major
international markets:

Spain is a leader in advanced technologies:
• 3 out of 5 flights in the world use Spanish software
for landing.
• 13 of the 15 major North American oil and gas
companies have Spanish management, control and
information systems installed.
• Major events/Complex, distributed international
delivery
• High-Tech and Defense Industry
• Telecommunications, Utilities, Banking…

66


Software Vendors

Telecom equipment vendors

Hardware Vendors

Service Providers

ICT Services and Consulting Companies

67

Success stories
•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 e Israel.
•Projects developed in Spain:
•Centre of excellence in Barcelona to develop solutions for financial entities health
sector.
•INSA, an IBM branch, has set up two centres (Caceres and Salamanca) for software
development s 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 the best talents of IBM 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 centers.
68

5. Business opportunities:
Biotechnology, Pharmacy and Life
Sciences

69

Biotechnology: Overview

Sciences

Participation in the international scientific arena
Spain produces 2.5 % of the world’s scientific publications
according to The British Royal Society (2004-2008)
9th world scientific power and 5th by scientific production in
the EU-15
Growing number of biocompanies and dynamic
creation of jobs
Turnover (M€) biotech sector 2008-2010

During 2000-2010 the number of biotech companies rose
359%
In 2010 1,715 companies involved in biotech activities
(+12.8%) and 617 strictly biotech (+29.9%)
163,526 employees (+3.8%) and 8,258 R+D activities
dedicated (+12.1%)
Strong SPIN-OUTs culture
Every year public institutions create between 10 and 14 new
companies.
Source: ASEBIO 2011 Report and : Relevance of Biotechnology in Spain 2009, Genoma España, INE

R+D Expenses (M€) biotech sector 2008-2010

70

5. Business opportunities: Biotechnology,
Pharmacy and Life Sciences
Distribution of biotechnology companies and biotech users by region

After Madrid and Catalonia, Andalucía is the
autonomous region with the higher number of strictlybiotech companies.
Most biotech companies are located in Madrid
(17.39%), Catalonia (15.01%) and Andalucía (13.19%).
Together they account for nearly the 50% of the national
total in 2010.

Source: ASEBIO 2011 Report.

71

Pharmaceutical Sector: overview

Sciences

An established industry in Spain
In 2011 there were about 476 pharma companies in Spain, including some with no production and/or
marketing activity.
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.
Distribution by region

These companies are mainly
located in Catalonia and the
Madrid
autonomous
region, which both have
long-standing
pharma
traditions.
Important companies can
also be found in other
regions
such
as
Navarre,
Andalucia
and
Galicia.
Source: FarmaIndustria Annual Report 2011. PMFARMA website

72

Sciences
Pharmaceutical Sector: R&D spending and workforce
The pharmaceutical industry is the leader in R&D spending in Spain
In 2010 pharmaceutical companies set aside more than €966M for R&D.
The sector accounts for 19.8% of all private R&D spending in Spain.
Outsourcing R&D
Apart from in-house R&D, the pharma industry leads the way in outsourcing this to other
companies.
Job creation in R&D
The pharma industry has 4,665 employees working full-time on R&D.
This is 12% of all R&D employment in Spanish industry.
Biomedical researchers
The biomedical industry created 2,153 jobs for graduate employees working
exclusively on R&D.

Source: FarmaIndustria Annual Report 2011

73

Sciences
Biotechnology and Pharmacy Sector: success stories
Proof of concept for the global market
2013: Novartis is investing 60M€ to expands its facilities in Cataluña for the manufacturing of the
entire production line of inhalers. The expansion will create 70 new jobs.
2013: Lilly has announced an increase in their production and R+D activities in their Spanish
facilities.
2012: Bayer concentrates its global aspirin production in Asturias investing 6M€.
2011: Celgene opens 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.
2009: Genzyme sets up a sales office in Madrid and has a warehouse for domestic distribution.
2008: The WHO designates the Spanish Transplant Organisation as a global collaborator for
donations and transplants.
2007: The EMEA approves Zeltia’s drug, Yondelis, for treatment of soft tissue sarcomas.
2005: GSK opens its research centre for tropical diseases in Spain.
2005: Genetrix receives an orphan-drug designation from the EMEA based on the use of adultorigin stem cells.
2003: Serono concentrates its global growth-hormone production in Spain.
2002: Lilly opened its research centre for medicinal chemistry, one of the biggest in the
world, investing €20m.
2002: Abengoa signed a $35.5m R&D agreement with the US Department of Energy.
2000: Pfizer invested €12m in its European Biometric Centre, which has support functions for the
rest of Europe and USA.
Source: press articles

74

Healthcare Technology: overview

Sciences

The healthcare technology market
In 2011 this sector invoiced about 7,700 M€.
It comprises more than 1,050 companies.
Job creation
The healthcare technology sector employs more than 29,000 people.
Exports are growing
In 2011 the value of exports surpassed 1,800 M€.
It represents 0.9% of the total exports in Spain.
Important trade partners
The target market is still the rest of the EU, which takes 60% of exports.
Argentina, Mexico, Czech Republic and America are playing an increasingly important role as
big importers of Spanish technology and products.
Source: FENIN annual report 2011.

75

5. Business opportunities: Aerospace

76

Aerospace Industry in Spain
The Spanish Aeronautics Industry is the 5th in Europe in terms of turnover (7.4 billion
€ in aeronautics in 2011) and employment (<37,000 employees)
The Spanish space sub-sector is the 5th one at the European level, employs more than
3,000 people and had a turnover of 720 million € in year 2011.

R&D:
• The investment in R&D activities reached 889
M€ in year 2011 (14.2% of the industry turnover).
Government support:
•The Spanish authorities consider the Aerospace
Industry as one of the Strategic Industrial
Sectors.
• Creation of several public R&D centers focused
in the aerospace industry.
77

Success stories

BOEING has developed important R&D Centers in Spain:
•First Boeing R&D center outside the USA
•Main areas: safety, ATM and environmental technologies
•April 2008: first flight of an airplane powered by hydrogen fuel cells – Ocaña
(Madrid)

According to Boeing:
“The reason for choosing Spain was the outstanding role of the country in the EU
and as a reference point with the Latin American countries.
It also shows the relevant position that the Spanish Aerospace industry has
acquired in the last few years and the capabilities of the country in environmental
and ATM technologies”
Source: www.boeing.es

78

5. Business opportunities: Automotive

79

Key figures /Automotive Industry in Spain

Spain is the 2nd largest car manufacturer in Europe and the 12th in the world.
Spain is the 1st manufacturer of Industrial Vehicles in Europe.
Nine out of Ten vehicles Produced in Spain are exported to over 130 countries
Most of the world's biggest car manufacturers are present in Spain with 17
automobile production plants.
Spain Automotive Parts Industry ranks 6th in the world.

80

Key figures /Automotive Industry in Spain

2 Million vehicles were produced in Spain in 2012.
Automotive Industry turnover accounts for 10% of GDP.
1.000 Auto-parts and components manufacturers.
300,000 people directly employed in the Industry.
2,000,000 jobs linked to the Sector.
1,73 Million vehicles exported to 130 Countries.
Motor Industry Main exporter with 17% of total Goods Exports.
3- 4 Million vehicles transported every year through the territory.
34 Technology Centers devoted to Automotive Industry.
Sources: ANFAC (Spanish Association of Vehicle Manufacturers /SERNAUTO Automotive Parts Exporters Association ) Last data available
81

Key figures/ Foreign Direct Investment
1,02 billion€ of Productive Investment in Spain in Car Industry in
the period 2010-2012
3 billion € of future investment committed by manufacturers in
2012/2013
New Industrial Plans approved by the 9 Multinational brands
established in the country.
Reindustralization Plan of the Industry to produce 1 Million extra
vehicles “ 3 Million Plan”.

Sources: ICEX-INVEST; Real Instituto Elcano; Ministry of Economy and Cometitiveness (dataInvex)
82

News /Investment Projects
RENAULT – www.renault.es November 2012 Renault approves the Industrial
Plan 2012-2014 for the Manufacturing Plants of Palencia (Megane), Sevilla and
Valladolid (Captur and Twizzy models). 100 new jobs will be created in Sevilla’s
Transmissions Plant.
IVECO- (Fiat Group) www.iveco.com/spain Industrial Plan up to 2016 for the
manufacturing centers of Madrid and Valladolid (Heavy Vehicles). Investment of 0,5
billion€ and creation of 1.200 jobs throughout this period.
FORD- www.ford.com - US-based automotive giant Ford will expand its
manufacturing complex in Almussafes, Spain. The company will build a new
80,000 sq m plant at the site to produce its own automotive parts and increase a
10% the production of Renault Kuga. 1,1 billion€ investment has been committed
through the period 2009-2013
MERCEDES- will Invest in 2013 up to 200 Millions € to adapt Vitoria Plant
Facilities for the new VITO VS20 and its Electric Version. The Industrial Plan
secures jobs in the plant.
Sources: FDI markets-Corporative Sources-ANFAC (Spanish Association of Car & Trucks manufacturers).
83

News /Investment Projects
PSA Peugeot-Citroën - will create 1.000 new jobs in 2013 in the
Manufacturing Facilities of Vigo for Production of Citroën C-Elysee, Electric
Versions of Peugeot Partner and Citroën Berlingo and New C4 Picasso.
NISSAN: announces in 2013 €130 Million Investment in Barcelona’s Plant
to produce a new Sedan Starting 2014.
GM- Includes Spanish Plant of Figueruelas in its Industrial Plan for Europe
that will drive up to 4 Billion Investment in 23 new models of OPEL in
Europe for the period 2013-2016.
SEAT (VW Group)- The group VOLKSWAGEN invested € 665 Million in SEAT
Plant of Martorell in 2012, including €100 Million in R&D&I and €13 Million in
Professional Training. Martorell Plant is one of the most productive and flexible
plant of the Group, with 377.000 units in 2012 including the New Audi Q3.
In 2013 The Plant will put on market the new SEAT Leon models.

Sources: FDI markets-Corporative SOURCES -ANFAC (Spanish Association of Car & Trucks manufacturers.
84

Human Resources /Professional Training/ Research
Automotive Sector expenditure in R&D&i and Professional Training is one of the
highest among all industries in Spain supported by:
Outstanding Network of Universities Research organizations
working for the Automotive industry.

and groups

Automotive Sector accounts for 12% of Spanish Investment in R&D&i.
34 Technology Centers with activities related to the automotive sector.
Significant offer of Master/post graduate studies in Automotive Industry
main manufacturing hubs.

around

High investment in Professional
Continuous Training Programmes
by Car
Manufacturers Annual Average of 63 Millions (444 Millions Investment through the
period 2005-2011)
In 2012 Manufacturers Invested almost €60 Millions in training Programmes.

85

Market Access – External Trade
Automotive Sector Accounts for 17’4% of Total Spanish Exports of Goods.
Motor Vehicles Main Exporter €23,8 bn in 2012.
Auto –Parts 3rd Chapter in value of Spain’s External Sales with €15 bn.

Spain Exports SPAIN EXPORTS RANKING 2012
Ranking 2012
Value €

% Total

1

Vehicles

23,836,206.37

10.7

2

Fuels and Lubricants

15,523,235.48

7.0

3

Automotive Parts and Accesories

14,967,156.14

6.7

4
5
6

Steel Works
Other Industrial Products
Pharmachemicals

10,610,095.78
9,845,766.64
9,135,687.10

4.8
4.4
4.1

7

Plastics

7,164,621.01

3.2

Subtotal

91,082,768.53

40.9%

222,643,893.84

100.0%

Total Spain Exports 2012
Source ICEX- Data ESTACOM

86

Automotive Industry in Spain/ AUTO -PARTS
Spanish Auto-Parts Industry ranks 6th in the world in terms of Turnover.
1,000 companies belonging to 720 groups provide customized Service.
Turnover of 29.500 Million € in 2011, 60% exported to 150 countries
191,000 people directly employed in the Sector.
Main global suppliers of the Automotive Industry established in SPAIN

Source: SERNAUTO (Spanish Association of Automotive Parts and Accesories Manufacturers). Year 2011 (last data available).
87

Automotive Industry in Spain/AUTO -PARTS
1.000 companies providing customized and quick service to the Industry.
778 Original Equipment and Original aftermarket Manufacturers.
High levels of Foreign Investment in the Sector.
Germany, USA, France, Italy and Japan, main investors.

Number of Manufacturing Companies by

Activity

300
245

250
215
200

187
158

150

131

100
50

25

26

0
TIER 1

TIER 2

TIER 3

Orig inal
Eq uilavent Acceso riesCo mmercial
Aftermarket Aftermarket

Source : SERNAUTO (Spanish Association of Auto-Parts Exporters)

88

Automotive Industry in Spain/AUTO -PARTS
External Trade
Spanish Auto -Parts Industry fully integrated in EU Car Industry.
Germany, France, United Kingdom and Portugal destination of 52% of Spanish
Auto-parts Exports.
US, Mexico, Morocco and BRIC’s among top Ranking destinations.

Country Ranking Spanish Exports Auto- Parts 2012
1
2
3
4
5
6
7
8

Country
Germany
France
United Kingdom
Portugal
United States
Belgium
Mexico
Morocco

Thousand €
2,053,161.19
1,939,799.40
1,030,918.03
552,084.53
504,770.91
408,901.64
303,237.07
293,014.17

% Total
19.37%
18.30%
9.73%
5.21%
4.76%
3.86%
2.86%
2.76%

9
10
11
12
13
14
15
16

Country
Thousand € % Total
Italy
284,407.96
2.68%
Poland
270,761.06
2.55%
Brasil
244,510.88
2.31%
China
230,370.58
2.17%
Czehc Republic225,253.99
2.13%
Rumania
215,837.57
2.04%
Turkey
212,377.30
2.00%
India
192,958.32
1.82%

Source: ICEX/ESTACOM

89

Eco-Electromobility Spanish Capablities and Leadership

Spain contributes to Eco-Electromobility as a major component designer and
manufacturer and as provider of Infrastructures and Network Intelligence.
74 Spanish Companies and Technology Centers have taken part in 60% of the
European eco-electromobility Projects.
Spanish Companies are leading 13 of these Projects.
The Spanish Technology Platform Move to Future ww.move2future.es gathers
together 142 Key innovative Companies, Research and Technology Centers.
Spanish Scientific, Technological and Industrial capabilities on future transport are well
summarized in the webpage GREEN CAR SPAIN. www.fp7greencars.es

90

Eco-Electromobility Spanish Capablities and Leadership
Spanish Companies and Research Technology Centers are Heading the 3 European
Projects on New Batteries:
NECOBAUT - New Concept of Metal-Air Battery for Automotive Application based on
Advanced Nanomaterials. Coordinator TECNALIA
Total cost: EUR 3,067,332 / EU contribution: EUR 2,121,013Call: GC.NMP.2012-1
SOMABAT - Development of novel Solid materials for high power Li polymer
Batteries. Recyclability of components. Coordinator ITE Technology Institute of
Energy
Total cost: EUR 5,040,127 / EU contribution: EUR 3,700,896 Call: GC.NMP.2010-1
GREENLION – Advanced manufacturing processes for Low Cost Greener Li-Ion
batteries Coordinator Fundación CIDETEC
Total cost: EUR 8,594,688 / EU Contribution: EUR 5,600,000 Call: GC.NMP.2011-1

Sources: SERNAUTO /MOVE TO FUTURE PLATAFORM – M2F
91

Eco-Electromobility/Spanish Capabilities
RENAULT, MERCEDES -BENZ, PEUGEOT, CITROËN, FORD, NISSAN and SEAT
have already made steps to produce electric powered and hybrid vehicles in
Spain.
AUTO-PARTS companies with plants in Spain are already working on specific
components and systems for electric and hybrid vehicles.

92

Why Spain for Automotive?

SPAIN is a key Player in European Car Industry.
2nd manufacturer in the EU.
Productive and flexible Manufacturing plants.
High Future Investment committed by Main Car manufacturers.
Powerfull 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.

93

5. Business opportunities: Logistics and Transport

94


Logistics and Transport Industries in Spain

• Spanish Logistics sector is fifth in Europe in terms of volume
and employment.

Turnover (2010)
• Turnover € 99,5 billions
• Logistics
• Road, Railway, Sea and Air Freight
• Growth rate of 25% in the last 3 years
• Nearly 4% of the Spanish GDP

43,6%

45,8%

8,7%

• Employment > 920,000 workers
• 4.3 % of active workers in Spain
• 91.9% occupancy rate

1,9%

Road and Rail Freight
Sea Freight
Air Freight
Warehousing and other activities related to transport

• Companies > 209,000
• Structure: High market concentration
Source: National Institute of Statistics, 2012.
• 90% SME’s
• 10 big companies manage 27% of the business

95


• The Infrastructure, Transport and
Housing Plan (2012 - 2024) states a
stable and sustained investor scenario of
up to 0.94% of GDP during the period.
• Larger extension of kilometers of
highway in EU-27 > 14,000 km. 5.9 %
Spain vs 1.2% EU average, 1.4% USA or
0.6% Japan.
• 46 Seaports of which Valencia, Bahia
de Algeciras y Barcelona are placed
among the first ten European.
• The Mediterranean Corridor plan within
Trans-European
Transport
Network
connects the Mediterranean Spanish
Seaports to a rail corridor which links
North Africa to Central Europe through
Spain.
96


Success stories

• DHL Spain is the key input platform throughout the DHL network to Latin American markets.
Invest in Spain, May 2011.
• TNT International Operations Center Madrid - Barajas (Spain) became hub for South America in
2002. Today, shipments to and from fifteen South American countries are handled from Barajas
Hub and to its whole network. Web.
• 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,
News July 2010.
97


Success stories

• Hutchison Port Holdings, a subsidiary of Hong Kong conglomerate Hutchison
Whampoa, operates the new semi-automatic container terminal of the Prat quay in
the Port of Barcelona which represents an initial investment of 300 million Euros and
aims to be the largest terminal in Southern Europe (Nov 2011).
• Mexico's Pemex will install its European operating base in the port of La Coruna
which implies a direct investment of $ 70 million (Oct 2012).
• The Danish APM Terminals Algeciras will devote € 42 million investment to meet their
new triple E ships in the port of Bahia de Algeciras (Jan 2013).
• Toyota Motor Europe (TME) establishes a new logistics center in Illescas from which
enhance the delivery of spare parts and accessories of the brand in Spain (Jan 2013).
• The German Vossloh Rail Vehicules operates one of its engineering centers, 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.
98

5. Business opportunities: Enviroment and Water

99


Environmental Industry in Spain
• The Spanish environmental sector moves around 11 billion euros – or 3.2% of the world
market, 4.8% of the European market and 0.9% of Spanish GDP
• 2,000 companies (SMEs) employing half a million people, of whom a quarter (140,343) work in
waste treatment and management. Estimates put employment at 1 million in 2020
• R&D projects for emission reductions, river restoration and numerous other areas of environmental
concern: in 2009, the European Union’s Life+ Programme named five winners in its ‘Best waste
management projects’ category – and two of these were Spanish
Success stories:
Spain ranks third in the world and first in Europe for ISO 14001 Environmental
Management certification with more than 16,500 awarded.
In 2011, the EU granted 85.8 million euros to 29 Spanish projects concerned with 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 waste
management, air quality and water treatment:
Waste generation:
Emissions:
Water consumption:

547 kg/inhabitant in 2009
8.02 tonnes of CO2 equivalent /inhabitant in 2009
154 litres/inhabitant/day in 2008
100


Environmental Industry in Spain: key players
Public entities

EUROPEAN
ENVIROMENTAL
AGENCY

SPANISH MINISTRY
OF ENVIRONMENT
AND AGRICULTURE

•

•

Private companies

Provides sound &

Makes proposals

independent
information

•

and develops the
implementation of

32 member countries

government policy

www.eea.europa.es

•
•

17 REGIONAL
AUTHORITIES
Definition and
implementation of
environmental policy
Regional
environmental
authorities often
called Consejerías

www.magrama.es

•

•

MUNICIPAL
AUTHORITIES
Subsidies
Fines
Refuse
collection, street
cleaning etc
Local
environmental
authorities, often
called ‘concejalias’
101


The Water sector in Spain
• Maximum reservoir capacity
• Reserves at February 2013
• Domestic consumption

54,388 hm3
37,267 hm3 (67.36%)
166 litres/inhabitant/day

Uses

Irrigation
Human supply
Industry

Water
Origin

Dams
Underwater sources
Desalination
Other sources

Treatment

62.66 %
21.16 %
17.17 %
85 %
10 %
2%
3%

3,500 hm³/year of treated wastewater by 1,300 WWTP
500 hm³/year reused by regeneration systems

>700 towns with >2,000 inhabitants with no wastewater treatment plant

102


Desalination
• 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, etc)
• R&D. Research centres actively involved in desalination:
CEDEX (Study and Experimentation Centre)
Canarian Technologic Institute
ProDTI, University of Seville
CENTA
Foundation “Investigación e Innovación para el Desarrollo Social”

103


your partner in Spain

6. ICEX-Invest in Spain

Orense 58, 3rd floor
28020 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: investinspain@icex.es
www.investinspain.org

104

Who is…
INVEST IN SPAIN is the Directorate in charge of attracting foreign direct
investment in ICEX-Spain Trade & Investment. The Secretary of State for
Trade is our president (Ministry of Economy and Competitiveness).
Objectives & activities
To promote, attract and maintain foreign direct investment in Spain
Attracting new projects of foreign investment by focusing on
countries, sectors and businesses that involve greater growth potential for
Spain
Promoting a business climate and facilitating doing business in Spain
Transmitting an image of Spain as an internationalized country
associated with highly competitive human and technological resources
To be the benchmark for foreign investors and the meeting point
between companies and institutions in the State, Regional and Local levels
engaged in promoting and attracting investments

105

1.- Information and Advice
Personalized advisory service. Customized reports
Information on European, National, Regional and Local grants and
subsidies applicable to investment projects
Information on administrative procedures and advice on all stages of the
investment process
Specialized consultancy on legal, technical and market areas through
partnership institutions
Specialist publications: sector guides, tax, immigration and legal briefs….
2.- Support and Management
Assistance with the establishment of foreign companies in Spain:
Finding the best location for each project throughout Spain
Organization and co-ordination agenda: meetings and visits to of companies
and institutions throughout Spain, as well as with the regional and local
governments concerned

Identification of the strategic & technology partners for each project
106

3- Business Development
Working in conjunction with regional and local agencies to provide clients
with the best possible service and location
Help in seeking incentives, public and private finance for the
establishment, development and expansion of companies setting up in
Spain
Introductions to other companies: to
projects, suppliers, specialist consultancy…

help

with

reinvestment

Partnership & management of joint investments by foreign companies and
Spanish investors
4.- Business climate
Presents the collective needs & interests of foreign-owned companies to the
Spanish Administration
Opinion surveys: individual interviews, focus-groups, Analysis of the business
climate. Foreign chambers of commerce, associations, etc

Legislative and administrative proposals
Periodical publications on topics of interest to investors

107

6. Invest in Spain: Investor services

Services of special interest : Immigration Department

Provides advice about the most appropriate way (quickest and least
bureaucratic)
to
obtain
the
permits
for
highly
qualified
employees, technical staff, scientists, families, ...
Advice about how to open a branch, create or acquire a company ...
Assessment regarding 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

108

6. Invest in Spain: Investor services

Services of special interest : The Technology Fund Program

The Technology Fund is a special budget of € 2,300 million from
European Regional Development Fund (ERDF) created to promote
business R&D&I in Spain for the 2007-2013 period
Invest in Spain takes part in this European program with a € 24 million
budget by promoting the capture of investments with a high degree of
R&D&I from foreign-owned capital companies
Investment in facilities, equipment, human resources and technology
could be supported up to € 200,000 grant per company in competitive
tender.
From 2008 Invest in Spain has supported 79 projects for a total
amount of € 9 million in high added value sectors such as
Biotechnology, IT, Renewable energies and Environment
109


your partner in Spain

6. ICEX-Invest in Spain

Orense 58, 3rd floor
28020 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: investinspain@icex.es
www.investinspain.org

110

Spain, your partner in Europe_ICEX_August2013

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