INVESTING IN SPAIN

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Spain has the 10th largest economy in the world by nominal gross domestic product(GDP) and the 12th largest by purchasing power parity (PPP). 

While the economy suffered a deep contraction during the 2008 financial crisis, it has since become one of Europe’s fastest growing economies. International investors have taken a renewed interest in the country’s as its economic rebound continues to gain traction over time. In this article, we’ll take a closer look at Spain’s economy .

Competitive Economy

Spain’s economy is primarily focused on services (71%), industry (14%), and construction (10%), with the remainder of economic growth coming from agriculture and energy. Within these sectors, the country hosts many large multinational companies, including Iberdrola – the world’s largest renewable energy operator – and large telecom firms like Telefonica and Movistar that have a presence in many global markets.

The 2013 Global Competitiveness Report listed Spain’s economy as having the 10th most developed infrastructure in the world. These rankings place it ahead of developed economies like the United States and Japan, with its high-speed rails system and highly developed technological infrastructure. Exports have also been steadily growing as the country recovers from its significant trade deficit accrued during the 2008 financial crisis.

Of course In 2013, after a hit to the Spanish economy, the government created a program for non-EU citizens to get fast-tracked residency and benefits in return for a minimum investment of €500,000 towards property in Spain. The purpose was to attract foreign investors to purchase property and/or open businesses in Spain to inject money back into the economy and employ Spanish citizens. In the same vein of other countries’ similar laws (i.e. Portugal and Greece), this program, too, was informally dubbed the Spanish “Golden Visa.”

The Golden Visa comes with some really beneficial perks for those interested in investing abroad in Spain. For one, your entire family (spouse, children, dependents) will receive Spanish residency all for the single €500,000 investment. This gives you free visa travel within all of the EU Schengen region countries. Unlike other residency options in Spain, which require you to live six months out of the year to maintain your temporary residency, the Golden Visa investment program eliminates any in-country requirements to reside. This means that by investing abroad in Spain, you can travel freely in and out of the country while still maintaining your temporary residency permit.

Investors who would like to start a business in Spain can also receive a type of entrepreneur visa, granting them temporary residency in the country. You will need to employ Spanish citizens and conduct a certain percentage of your business in the country. In doing so, your new company will have a tax rate of 15% for the first two years in business, 25% annually after that.

It’s always important to make sure that the country you are investing abroad in is politically and economically stable, so you can ensure the security of your investment. It’s also important to make sure that the country is safe, so that no harm will befall you or your investment.

In the 2017 Global Peace Index, Spain ranked 23 out of 163 countries profiled. The country ranked very positively in homicide, intensity of internal conflict, violent demonstrations, political stability, political terror, terrorism impact, death from external/internal conflict, and neighboring countries relations.

In the 2019 From an economic standpoint, Spain is the 10th largest economy in the world in the same direction, SCBC Investment Department offers a variety of plans for creating a safe business or investing in Spain.

Please contact to us for more information.