1. Ciencia

Spain: your partner in Europe
Global Market Access from an International Economy
Investment Framework
Business Opportunities
October 2014
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
1. Spain: a highly internationalized economy
Spain is the world’s 13th largest economy and the 5th largest economy in the EU:
GDP worth 1.4 trillions USD
GDP comparison of major economic regions,
USD billions
EU27: 17,372
NAFTA: 19,883
Asia: 13,435
Germany: 3,636
France:
2,807
UK: 2,523
Italy*:
2,072
Spain:
1,359
USA:
16,768
Japan:
4,899
ASEAN-5:
2,012
Australia:
1,506
BRICs: 15,413
Source: IMF, 2014. Data Referred to 2013
*Estimated
NIEs:
3,807
Canada:
1,827
Mexico:
1,261
Russia:
2,097
China*:
9,469
Brazil:
2,246
India:
1,877
3
1. Spain: a highly internationalized economy
Spain is the 7th largest exporter of commercial services worldwide, 4th in the EU, and
the 18th-ranked exporter of merchandise trade.
Commercial Services Exports
USD Millions
Merchandise Trade Exports
USD Millions
1
United States
662,111
5.0%
1
China
2,209,626
2013/2012
%
0.0%
2
United Kingdom
289,970
0.6%
2
United States
1,578,972
2.2%
Germany
8.0%
3
Germany
3.4%
3
286,823
1,452,795
715,097
-10.5%
8.3%
Japan
France
233,288
4
4
5
Netherlands
663,524
1.5%
China
207,018
8.7%
6
rance
579,647
1.9%
6
India
152,587
4.8%
7
Republic of Korea
559,632
2.1%
7
Spain
144,452
5.5%
8
United Kingdom
541,348
14.5%
8
Japan
143,890
1.0%
9
Hong Kong
535,546
8.7%
9
Netherlands
142,006
8.3%
523,327
-1.1%
135,024
7.1%
….
…
…
6.9%
5.5%
18 Spain
315,518
4,623,710
18,784,000
2.1%
5
10 Hong Kong
World
2013
2013/2012
%
Source: World Trade Organization (WTO), 2014.
2013
10 Russian Federation
World
Source: World Trade Organization (WTO), 2014.
4
1. Spain: a highly internationalized economy
Spain, strong and sustainable external sector performance
In the last six years, Spanish exports of goods and services have dramatically risen.
Spanish exports reached 34.1% of GDP in 2013, 7.7 p.p. higher than in 2007, and more
than in France, Italy or the United Kingdom.
Export of good and services/GDP %
Source: Eurostat, 2014.
A competitive combination: technology, innovation, productivity and lower Unit Labor
Cost have lead to a competitiveness based expansion of exports.
5
1. Spain: a highly internationalized economy
While the world export market share of Germany, Japan, Italy, or France has declined
during last decade, due to competition from emerging countries, the Spanish share of
world merchandise exports has remained stable (1.6% in 2012).
Country share in world export of merchandise trade,
2006-2013
Source: World Trade Organization (WTO), 2014.
6
1. Spain: a highly internationalized economy
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.
In 2013 our exports to non-EU countries kept the upward trend of the last few years:
Exports to Africa went up by 8.4% (particularly to Algeria by 11.4% and South Africa
by 33.4%),
To Latin America by 6.4% (especially to Argentina, +36.3% and to Brazil, 28.9%)
To Asia by 10.3%, (out of which 4.7% to China, 12.9% to Thailand and 10.7% to
Taiwan)
However, the EU is still our main business partner with a 62.6% of our exports:
Spanish sales to this region increased by 4.7 percentage points in 2013
To the euro area by 4.1%
To the rest of the EU countries by 6.8%.
7
1. Spain: a highly internationalized economy
Tourism: Spain is the 2nd country worldwide in revenues and the 1st in Europe.
Spain ranks 3rd in tourist arrivals worldwide and 2nd in Europe.
GENERATED REVENUE
(INTERNATIONAL TOURISM)
1
2
3
4
5
6
7
8
9
10
Country
2013
(Bill USD)
2013/2012
(%)
USA
Spain
France
China
Macao
Italy
Thailand
Germany
United Kingdom
Hong Kong
World
139.6
60.4
56.1
51.7
51.6
43.9
42.1
41.2
40.6
38.9
1,159
10.6%
7.4%
4.8%
3.3%
18.1%
6.6%
24.4%
8.1%
12.1%
17.7%
5.3%
Source: WTO, 2014. Tourism Highlights.
INTERNATIONAL TOURIST ARRIVALS
Country
1
2
3
4
5
6
7
8
9
10
France
USA
Spain
China
Italy
Turkey
Germany
United Kingdom
Russia
Thailand
TOTAL
2013
(Mill. People)
2013/2012
(%)
..
69.8
60.7
55.7
47.7
37.8
31.5
31.2
28.4
26.5
1,087
..
4.7%
5.6%
-3.5%
2.9%
5.9%
3.7%
6.4%
10.2%
18.8%
5.0%
Source: WTO, 2014. Tourism Highlights.
8
1. Spain: a highly internationalized economy
Spain is the 11th largest economy in terms of accumulated inward and outward FDI
stock 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
17
18
19
20
United States
United Kingdom
Hong Kong, China
France
China
Belgium
Germany
Singapore
Switzerland
Brazil
Spain
Netherlands
Canada
Australia
Russian Federation
British Virgin Islands
Italy
Mexico
Sweden
Ireland
World
Source: UNCTAD, WIR, 2014.
Inward FDI stock
2013
Mill USD
Share
4,935,167
19.4%
1,605,522
6.3%
1,443,947
5.7%
1,081,497
4.2%
956,793
3.8%
924,020
3.6%
851,512
3.3%
837,652
3.3%
747,436
2.9%
724,644
2.8%
715,994
2.8%
670,115
2.6%
644,977
2.5%
591,568
2.3%
575,658
2.3%
459,342
1.8%
403,747
1.6%
389,083
1.5%
378,107
1.5%
1.5%
377,696
25,464,173
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, China
Switzerland
Netherlands
Belgium
Japan
Canada
Spain
China
Italy
British Virgin Islands
Ireland
Russian Federation
Singapore
Australia
Sweden
Brazil
World
Outward FDI stock
2013
Mill USD
Share
6,349,512
24.1%
1,884,819
7.2%
1,710,298
6.5%
1,637,143
6.2%
1,352,353
5.1%
1,259,369
4.8%
1,071,819
4.1%
1,009,000
3.8%
992,901
3.8%
732,417
2.8%
643,226
2.4%
613,585
2.3%
598,357
2.3%
523,287
2.0%
502,880
1.9%
501,202
1.9%
497,880
1.9%
471,804
1.8%
435,964
1.7%
1.1%
293,277
26,312,635
100%
Source: UNCTAD, WIR, 2014.
9
1. Spain: a highly internationalized economy
Spain: Inward FDI by country
Stock : EUR Millions
COUNTRY
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
UK
GERMANY
MEXICO
LUXEMBOURG
PORTUGAL
SPAIN
NETHERLANDS
SWITZERLAND
BRAZIL
UAE
SWEDEN
CANADA
JAPAN
BELGIC
COLOMBIA
URUGUAY
ISRAEL
IRELAND
AUSTRIA
ARGENTINA
DENMARK
NETHERLANDS ANTILLES
OTHER
TOTAL
STOCK 2012
57,308.5
48,605.8
37,124.3
35,455.4
28,973.0
19,465.1
19,241.3
18,749.6
18,234.9
14,740.0
10,580.9
8,812.9
5,445.3
4,999.4
3,778.5
3,613.5
2,771.0
2,765.6
2,456.7
1,260.5
1,172.3
1,004.4
980.0
921.9
859.6
12,229.6
361,550
% total
2012
15.9%
13.4%
10.3%
9.8%
8.0%
5.4%
5.3%
5.2%
5.0%
4.1%
2.9%
2.4%
1.5%
1.4%
1.0%
1.0%
0.8%
0.8%
0.7%
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
3.4%
100.0%
Source: Registro de Inversiones, 2014. Data Refered to 2012
10
1. Spain: a highly internationalized economy
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 first 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 (by market capitalization).
Spanish infrastructure sector is a world leader in foreign
markets. Thirteen Spanish companies totaled 80 billion
dollars in revenue.
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.
The Spanish company Abengoa has placed in service in
Arizona the largest solar power plant in the world.
11
1. Spain: a highly internationalized economy
Spain is the 9th most open country to Foreign Investment according to OECD’s FDI
Restrictiveness Index
CLOSE
OPEN
12
1. Spain: a highly internationalized economy
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
14
2. Market Access
Domestic market of over 46 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
Capacity for consumption of goods
Country
Advantages to operate in EU:
Intra-European duty free market.
The free movement of goods &
services, capital and persons.
Single currency: EURO.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
United States
China
Japan
Germany
France
United Kingdom
Brazil
Russia
Italy
India
Canada
Australia
Spain
Mexico
Korea
GDP per capita
RK
5
92
21
14
22
20
78
57
30
131
8
9
32
65
26
USD
53,101
9,844
36,899
40,007
35,784
37,307
12,221
17,884
30,289
4,077
43,472
43,073
29,851
15,563
33,189
Source: IMF 2014
15
2. Market Access
The best European platform for doing business with Latin America:
16 Agreements to Avoid Double Taxation
in Central and South America: Argentina,
Bolivia, Brazil, Barbados, Chile, Colombia, Costa Rica, Cuba,
El Salvador, 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, 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 among European countries.
Spain: Top- Outward FDI Stock
by country EUR Millions
Latin America and the Caribbean:
origin of FDI
Others
36%
USA
24%
Latin
America
JapanSpain
14%
4% 5%
Netherlands
11%
Canada
6%
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%
447,291
438,359
100%
TOTAL
Source: ECLAC, 2014.
Source: Spanish Ministry of Economy and Competitiveness, 2014.
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
Morocco, Algeria, Tunisia, Libya, Egypt.
Promotion
of
Reciprocal
Investments
• 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
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
The Spanish economy is undergoing a significant adjustment and is in process of
correcting accumulated imbalances
.
25
3. Economic policy and structural reforms
Reforms for Competitiveness
Public Sector Reform
Fiscal consolidation at all levels of Administration
Competitive Labour Costs
Labour market reform.
Financial System Reform
Provisioning system redressed and restructuring
process completed.
Domestic and International Market
Access
Ensuring Market unity regulation at national and
E.U. level.
Investment Incentives
Economic Regional Incentives, R&D and Funding
mechanisms.
Resident and Work Permits
Law on visa and work permits and flexible
application to foreign investors.
26
3. Economic policy and structural reforms
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).
Proposal for Fiscal Reform expected in early 2014 to produce effects as from 2015.
Structural Primary Balance Surplus in 2013 (1.13% GDP)
Source: Ministerio de Hacienda y Administraciones Públicas
27
3. Economic policy and structural reforms
Adjustment and recapitalization of the financial system
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 been completed at the end of 2013.
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.
The clean-up of undercapitalized banks has required an injection of €41,3 bn. of public funds (less 4%
of GDP).
Segregation of the troubled assets of banks that need public support for their recapitalization (volume
estimated in €50,5 bn.) and transfer to an asset management company (SAREB) with majority of private
capital (55%).
Increase in provisions and capital buffers on real-state exposure.
The total number of entities in the financial sector, excluding credit cooperatives and
foreign branches, has decreased from 50 in 2009 to 12 nowadays.
The privatization process was lunched in 2014 with Banco Novagalicia, Catalunya Banc
and Bankia.
28
28
3. Economic policy and structural reforms
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
Unfair dismissal: severance pay of 33 days per year, up to 24 months. It means a
reduction of 26.6% in the paying severance
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: 100€ Flat rate for employers’ contributions
for common contingences to the Social Security when the worker is hired by a full time and
permanent contract. This flat rate applies during two years.
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
29
3. Economic policy and structural reforms
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
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. New Law of Professional Services
Plan on Fostering entrepreneurship and business environment: measures to support
‐
workers.
entrepreneurs, SMEs and self‐employed
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
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.
30
30
3. Economic policy and structural reforms
New specific framework for qualified immigration and investors
It is based on an agile and specialized system for visa and authorization concessions.
VISA AND AUTHORIZATION CONCESSIONS
FOR
Investors
Entrepreneurs
Highly qualified professionals
Scientists and researchers
Intra-corporate transferred employees
GENERAL REQUIREMENTS
THE PROCEDURES
Not being in an illegal situation in Spain
10 days for visas and 20 days for authorizations
Being 18 years old or older
A single authorization for living and working in Spain
Not having criminal records
Valid for the whole of Spain
Public or private health insurance in Spain
Enough economic resources.
The family will be able to apply at the same time
Freedom to live in Spain: Granted residence and work permits authorization
Source: http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/folletos/index.html
31
3. Economic policy and structural reforms
The first results
For the first time in 14 years, the Spanish economy needs no external financing. The current account
and capital deficit in 2012 (-4930,2 billion) has reverted to a surplus in 2013 (14,73 billion €). (Source
Bank of Spain).
In 2013 nominal unit labor costs declined by 7.6% since the peak in 2009 and are at similar levels
than in 2007. Productivity has steadily increased since 2008 due to the shift towards tradable goods
and services.
The weight of exports of services and goods in GDP has increased from 23.9% in 2009 to 34.1% by
2013-Q4. In 2013, exports of goods rose by 5.2% (3.8% in 2012, provisional data) and reached the
unprecedented amount of 234,239.8 million euro (since records began in 1971).
The ongoing geographic diversification of the Spanish exports is one of the main reasons behind the
increase of sales abroad. In 2013 our exports to non-EU countries kept the upward trend of the last
few years. Exports to Africa went up by 8.4%, to Latin America by 6.4% and to Asia by 10.3%.
Non-energy surplus in 2013 amounted to 25,042.2 million euro, almost doubling the record in 2012
(14,746 million euro)
The trade surplus with the EU has increased 38.6% in 2013 standing at €17,69 billion..
Productive foreign investment received by Spain has increased 8.8% in 2013.
The differential of the 10-year bond compared with the German bond has gone from over 600 basis
points in August 2012 to below 150 basis points.
Spain has emerged from a two-year recession in the third quarter of 2013. The Gross Domestic
Product (GDP) generated by the Spanish economy registered a variation of 0.4% in the first quarter
2014, as compared to the previous quarter. Economic forecasts (including official forecasts and
those of international organizations like IMF and private analysts) are being revised up.
32
32
For more information about macroeconomic
situation and economic policy visit:
www.tesoro.es
and
www.thespanisheconomy.com
33
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
34
4. Business climate
o
Infrastructure and Technology
35
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.
Source: Eurostat: Last data available 2012
Country
Passengers on board
United Kingdom
Germany
Spain
France
Italy
Netherlands
Switzerland
Norway
Greece
Sweden
Portugal
Denmark
Belgium
Austria
Ireland
Poland
Finland
Czech Republic
203,509,424
180,255,063
160,385,889
136,224,969
117,363,422
55,946,383
43,361,771
35,197,072
32,080,811
30,556,434
27,926,447
26,660,166
26,176,243
26,082,777
23,627,684
21,871,076
16,514,915
11,927,281
36
4. Business climate: Infrastructure & Technology
Railway Network
Spain is the 2nd largest worldwide (1st in Europe) in High-Speed Network and the European leader with
almost 2,000 km 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 total railway network of 13,500 km.
According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indixes
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 Referred July 2013
37
4. Business climate: Infrastructure & Technology
Road Network
Spain is the 1st largest EU highway network with 14,701 km. According to The Global
Competitiveness Report (World Economic Forum), Spain has one of the best indixes of
Quality of roads in the world.
Length of Motorways (Kilometers 2012)
Spain
Germany
United Kingdom
Portugal
Austria
Croatia
Poland
Finland
Slovenia
Bulgaria
Slovakia
Norway
Romania
Lithuania
Cyprus
Estonia
0
5000
10000
Source: Eurostat 2014. Last data available.
15000
20000
38
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-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 indixes of Quality of port
infrastructures in the world.
Container traffic for European ports (in TEU)
Port
Rotterdam
Hamburg
Antwerpen
Bremerhaven
Valencia
Algeciras
Gioia Tauro
Felixstowe
Piraeus
Le Havre
Barcelona
Genova
Southampton
Las Palmas
La Spezia
Marseille
Gdansk
Zeebrugge
Göteborg
Source: European Sea Ports Organisation. Ranking based on TEU
(total number of actual twenty-foot equivalent units) of 2012
Country
NL
DE
BE
DE
ES
ES
IT
UK
EL
FR
ES
IT
UK
ES
IT
FR
PL
BE
SE
2012
10.939,0
8.891,0
8.174,0
6.111,0
4.469,8
4.114,2
3.725,0
3.368,0
2.815,0
2.115,0
1.756,4
1.578,0
1.489,0
1.207,9
1.181,0
1.155,0
933,0
930,0
922,0
39
4. Business climate: Infrastructure & Technology
More than 80 Technology Parks
66 parks in the Association of Science and
Technology Parks of Spain, hosting 6,286
companies
The main sectors of the
companies located in the Parks
ICT
Medicine/Health
Agriculture/Biotechnology
Technology centres/R&D
Aeronautics/Automotive
Business Centres
Engineering/Consultancy
Industrial
Energy/Environment
Training/Human Resources
Electronics
Others
Asturias
2
2
Bizcaya
Cantabria
2
1
Álava
Pontevedra
1
Guipúzcoa
1
1
Orense
1 León, Burgos y
Valladolid
1
1
1
La Rioja
1
1
Huesca
Gerona
Lérida
1
Valladolid
1
Zaragoza
7
6
Barcelona
Salamanca
23%
28%
1%
2% 3%
4%
4%
1
Guadalajara
Madri
d
2
2
Teruel
1
1
1 Castellón
2
15%
Valencia
Palma de Mallorca
Badajoz
4%
6%
1
1
2 Alicante
5%
Jaén
Córdoba
1
Sevilla
Huelva
5%
2
Cádiz
Tenerife
Fuerteventura
1 Gran Canaria
1
1
Source: Association of Science and Technology Parks of Spain 2013
Murcia
2
1
Granada
1
2
1
2
1
2 Málaga
1
1
Almería
1
Parks at full performance
Parks in development
40
4. Business climate: Infrastructure & Technology
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
41
41
4. Business climate: Infrastructure & Technology
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
42
42
4. Business climate
o
Incentives and taxes
43
4. Business climate: Incentives & taxes
Main incentives for productive investment
European Union Incentives Scheme for Large Companies in Spain
Grants from Ministry of Financial and Public Administration
Aid Intensity
Additional Increase in Incentives from
10% to 20% for SMEs
There are other regional and local incentives available in all Autonomous Communities
44
44
4. Business climate: Incentives & taxes
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 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 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
45
grants and loans
4. Business climate: Incentives & taxes
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 60% of revenues arising from the letting of the right to use certain qualifying
intellectual property (IP) rights are tax-exempt.
46
4. Business climate: Incentives & taxes
Incentives for hiring people
Permanent Contract Incentives: Reduction in the employer's social security contribution
Company Size
Monthly Amount (€)
Term
New contract (up to 31/12/2014)
All
Flat-rate for common contingences:100€
2 years
National Youth Guarantee System
All
300 €
6 months
Training Contracts Incentives: Reduction in the employer's social security contribution
New contract
Employee<30 years
Training activities
Company Size
Annual Amount (€)
Less than 250 employees
100%
More than 250 employees
75%
All
Depends on the type of the training: Maximum: 4,160€
Term
Throughout the term of the contract
3 years
1,800 € yearly for women
Conversion of Training, Apprenticeships Contracts into
Permanent Contracts
Partial-Time contracts linked with training activities
All
3 years
1,500 € yearly for men
Less than 250 employees
100% for common contigences
More than 250 employees
75% for common contigences
1 year + 1 year plus
Hiring Incentives:Reduction in the employer's social security contribution
Research staff
"First young job" contract
Employee<30 years
Company Size
Annual Amount (€)
Term
All
40% for common contingences
Throughout the term of the contract
All
700 €/yearly for women
500 €/yearly for men
3 years
All
100% for common contingences when the companies hire
beneficiaries of the National Youth Guarantee System
Throughout the term of the contract
Apprenticeship contracts for first jobs
Employee<30 years
Companies with less than 50 workers
hiring unemployed
16>Employee<30
Less than 50 employees
Employee>45 years
Companies with up to 9 workers hiring unemployed
Average of 1,200 €
3 years
Average of 1,400 €
Up to 9 employees
100% for common contigences
1 year
Employee<30 years
Source: Ministry of Employment and Social Security
47
4. Business climate: Incentives & taxes
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
Source: Eurostat 2012
48
4. Business climate: Incentives & taxes
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)
49
4. Business climate: Incentives & taxes
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
50
4. Business climate
o
o
Human capital: Productivity, Skilled Labor
Force and Competitive Costs.
Decreasing Unit Labor Costs.
51
4. Business climate: Human Capital:
productivity and skilled labor cost
Labor Costs
Labor cost in Spain are below the EU-27 average
50
Cost per hour Private Sector 2013
€/hour
45 43.0
41.2
39.8
40
35.635.0
35
32.531.731.731.3
28.027.6
30
23.7
21.1 20.9
25
20
15.9
14.314.1
12.611.5
10.4 9.3
8.8 7.8
7.4 6.5 6.2
15
10
5
4.7 3.7
0
Source: Destatis 2014 (Federal Statistical Office Germany)
52
4. Business climate: Human Capital:
productivity and skilled labor cost
Labor Costs
Unit Labor Costs more competitive than main European economies
UNIT LABOR COST EVOLUTION, 2007-2013
Index, 2005=100
130,0
125,0
120,0
115,0
Spain
Germany
France
110,0
Italy
United Kingdom
105,0
100,0
95,0
2007
2008
2009
2010
2011
2012
2013
Source: Eurostat. October 2014
53
4. Business climate: Human Capital:
productivity and skilled labor cost
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
150.000
Spain
France
100.000
50.000
Italy
United Kingdom
0
Source: Eurostat . October 2014. Data: Millions € (at current prices)
*Compensation of employees consists of wages and salaries, and of employers' social
contributions
54
4. Business climate: Human Capital:
productivity and skilled labor cost
Salaries and wages in Spain
Average salaries by department for different sectors
2013
Thousand €
100
90
80
70
60
50
40
30
20
10
0
Executive Director/National/Chief
Division Director
Manager/Head of Department
Officer/Programmer/Technician
Source: Infoempleo and Adecco Report 2013: Job offers and demands in Spain
Note: Gross Salary
55
4. Business climate: Human Capital:
productivity and skilled labor cost
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
0,0
EU 27
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Spain
-1,0
-2,0
-3,0
-4,0
Source: Eurostat. October 2014. Data: % change on previous period
56
4. Business climate: Human Capital:
productivity and skilled labor cost
Social Security Costs
Employer contribution rate: 100€+7.3% applied to a threshold, in case of permanent
contract during 2 years.
Incentives for certain hiring and training contract applied to reduce employer S. Security
Contribution.
Group 1 Employer S. Security Contribution
Contribution to S. Security
for permanent contract during 2 years
400 €
350.08 €
300 €
100 €+7.3%
176.8 €
200 €
100 €
<1,051.4 €
1,051.5 €
3,596.99 €
>3,597 €
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
57
4. Business climate: Human Capital:
productivity and skilled labor cost
Employer’s Social Security contribution before and after Royal Legislative Decree 3/2014
If a company hires a worker with a salary of 30,000€, after RD 3/2014, the total employer
contribution to Social Security is 2,782.5€ per year. That means a reduction of 63% in
comparison with the same employment contract before RD 3/2014 (9,270€).
Total Employer's
Contribution to Social
Security before RD 3/2014
Total Employer's
Contribution to Social
Security after RD 3/2014
Group 1
Group 1
Annual (€)
Monthly (€)
Salary
30,000.00
2,500.00
590.00
General Contingencies
1,200.00
100.00
1,650.00
137.50
Unemployment
1,650.00
137.50
Accidents
300.00
25.00
Accidents
300.00
25.00
Salary Guarantee Fund
60.00
5.00
Salary Guarantee Fund
60.00
5.00
15.00
Professional Training
180.00
15.00
772.50
Total Employer's Contribution to
S.S.
3,390.00
282.50
Salary
General Contingencies
Unemployment
Professional Training
Total Employer's Contribution to
S.S.
Total Cost
%
Annual (€)
Monthly (€)
30,000.00
2,500.00
7,080.00
180.00
9,270.00
39,270.00
3,272.50
23.61
Total Cost
%
33,390.00
2,782.50
10.15
58
4. Business climate: Human Capital:
productivity and skilled labor cost
Business Schools
IE Business School holds the No. 1 position in the 2013 Financial Times ranking of
European business schools
2013
Rank
3 year
average
rank
1
1
3
3
1
3
3
5
HEC Paris
IE Business School
London Business School
Esade Business School
France
Spain
UK
Spain
5
4
Insead
France/Singapore
6
7
8
9
5
9
9
7
Spain
Switzerland
Italy
Switzerland
10
9
Iese Business School
University of St Gallen
SDA Bocconi
IMD
Rotterdam School of Management, Erasmus
University
11
11
ESCP Europe
France/UK/Germany/
Spain/Italy
12
13
14
15
16
17
18
19
20
11
16
14
15
16
25
16
17
23
University of Oxford: Saïd
EMLyon Business School
Essec Business School
Vlerick Business School
Imperial College Business School
Edhec Business School
City University: Cass
Cranfield School of Management
Tilburg University, TiasNimbas
UK
France
France/Singapore
Belgium
UK
France
UK / UAE
UK
Netherlands
School name
Country
Netherlands
Source: Financial Times 2013
59
4. Business climate: Human Capital:
productivity and skilled labor cost
Business Schools
Spanish Business Schools have three MBA programs among the top 25 in the world
2014 Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
17
17
20
21
22
Global MBA ranking 2014
School name
Harvard Business School
Stanford Graduate School of Business
London Business School
University of Pennsylvania: Wharton
Columbia Business School
Insead
Iese Business School
MIT:Sloan
University of Chicago: Booth
Yale School of Management
University of California at Berkeley: Haas
IMD
IE Business School
Hong Kong UST Business School
Northwesterm University: Kellog
University of Cambridge: Judge
Duke University: Fuqua
New York University: Stern
Ceibs
Dartmouth College:Tuck
HEC Paris
Esade Business School
Country
USA
USA
UK
USA
USA
France/Singapore
Spain
USA
USA
USA
USA
Switzerland
Spain
China
USA
UK
USA
USA
China
USA
France
Spain
Source: Financial Times 2014
60
4. Business climate: Human Capital:
productivity and skilled labor cost
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. November 2013. Data: Thousands
61
4. Business climate
o
Immigration
62
4. Business climate: Immigration
International mobility - New legal framework
It is based on an agile and specialized system for visa and authorization concessions.
VISA AND AUTHORIZATION
CONCESSIONS FOR
Investors
Entrepreneurs
Highly qualified professionals
Real Estate
500.000 €
Spanish
Companies
1 mill. €
Bank Deposit
1 mill. €
Public Debt
2 mill. €
Scientists and researchers
Intra-corporate transferred employees
GENERAL REQUIREMENTS
THE PROCEDURES
Not being in an illegal situation in Spain
10 days for visas and 20 days for authorizations
Being 18 years old or older
A single authorization for living and working in Spain
Not having criminal records
Valid for the whole of Spain
Public or private health insurance in Spain
Enough economic resources.
The family will be able to apply at the same time
Benefits of the Schengen visa: freedom of movement
within the member states
Freedom to live in Spain: Granted residence and work permits authorization
Source: http://prie.comercio.es/en/pages/programa-de-residencia-para-inversores-y-emprendedores-(prie).aspx
63
4. Business climate
o
Quality of life: Expat setting up
64
64
4. Business climate: Quality of life
Foreign Schools
There are currently 180 international schools in Spain, including 116 English spoken
Schools, 24 French Schools and 19 German Schools, among others
Foreign Schools 2014
120
100
100
80
60
40
24
20
19
16
5
5
4
2
1
1
1
1
1
0
Source: Ministry of Education, Culture and Sports, 2014
65
4. Business climate: Quality of life
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
66
4. Business climate: Quality of life
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)
67
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
68
5. Business opportunities: ICT
69
5. Business opportunities: ICT
Information and Communication Technologies Industry in Spain
Spain is the fifth ICT market by volume in Europe: € 91,970 Million.
The gross added value at market prices represents almost the 5.2% of GDP in 2012.
There are near 25,000 ICT companies, including digital content, operating in Spain.
The sector is currently[1] employing almost 400,000 workers.
Spain ICT Sector Turnover 2012 (€ million)
Production
3.1%
Commerce
10.3%
30.9%
Telecommunications
9.5%
€ 91.97
Billion
46.2%
Digital Content
Source [1] : ONTSI (Spanish Observatory for the Telecommunications and Information Society), 2014. Data 2012
Information
Technologies
70
5. Business opportunities: ICT
Spanish companies are present and recognized in major
international markets:
Spain is a leader in advanced technologies:
Spanish software for landing is worldwide renowned
and used
Major events/Complex, distributed international delivery
High-Tech and Defense Industry
Telecommunications, Utilities, Energy, Banking…
71
5. Business opportunities: ICT
Leading ICT multinationals are already successfully located in Spain, taking advantage of
Spain’s benefits:
Software Vendors
Telecom equipment vendors
Hardware Vendors
Service Providers
ICT Services and Consulting Companies
72
5. Business opportunities: ICT
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.
73
5. Business opportunities:
Biotechnology, Pharmacy and Life Sciences
74
5. Business opportunities:
Biotechnology, Pharmacy and Life Sciences
Success stories
Proof of concept for the global market
Novartis announced in 2013 an 60M€ investment to expands its facilities in Cataluña for the
manufacturing of the entire production line of inhalers. The expansion will create 70 jobs.
Lilly has in Madrid its research centre for medicinal chemistry, one of the biggest in the world
investing 20M € and is planning an increase in their production and R+D activities.
Bayer has concentrated its global aspirin production in Asturias investing 6M€.
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€.
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.
Merck has concentrated its global growth-hormone production in Spain.
Pfizer has invested €12m in its European Biometric Centre, which has support functions for the rest
of Europe and USA.
Source: press articles
75
5. Business opportunities:
Biotechnology, Pharmacy and Life Sciences
Biotechnology: Overview
Solid macroeconomic impact
Directly and indirectly, biotech sector accounts for 7.15% of
Spain’s GDP.
This data is close to traditional sectors as tourism and
automotive.
Consolidation of Spanish biotech sector
Growing number of biocompanies and dynamic creation of
jobs
Turnover (M€) biotech sector 2008-2011
More than 3,000 companies involved in biotech activities
(+76.4%) and 660 strictly biotech (+7%).
202,250 employees (+23.7%) and 8,800 R+D activities
dedicated (+6.6%).
Strong SPIN-OUTs culture
Every year public institutions create between 10 and 14 new
companies.
R+D Expenses (M€) biotech sector 2008-2011
Source: ASEBIO 2012 Report
76
5. Business opportunities:
Biotechnology, Pharmacy and Life Sciences
Distribution of biotechnology companies and
biotech users by region
9.04%
15.49%
18.54%
After Madrid and Catalonia, Andalucía is the
autonomous region with the higher number of strictlybiotech companies.
Most biotech companies are located in Catalonia
(18.54%), Madrid (15.49%) and Andalucía (13.05%).
Together they account for nearly the 50% of the national
total in 2011.
7.63%
13.05%
Source: ASEBIO 2012 Report.
Source: ASEBIO 2012 Report
77
5. Business opportunities:
Biotechnology, Pharmacy and Life Sciences
Pharmaceutical Sector: overview
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 Centers.
Distribution by region
These companies are mainly
located in Catalonia and the
Madrid autonomous
region, which both have longstanding pharma traditions.
Important companies can also
be found in other regions such
as Navarre, Andalucia and
Galicia.
Source: FarmaIndustria Annual Report 2012. PMFARMA website
78
5. Business opportunities:
Biotechnology, Pharmacy and Life Sciences
Pharmaceutical Sector: R&D spending and workforce
The pharmaceutical industry is the leader in R&D spending in Spain
Pharmaceutical companies set aside near to € 1,000M. for R&D.
The sector accounts for 19% 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 4,683 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 2012
79
5. Business opportunities:
Biotechnology, Pharmacy and Life Sciences
Healthcare Technology: overview
The healthcare technology market
This sector invoiced about € 7,200M.
It comprises more than 1,050 companies.
Job creation
The healthcare technology sector employs more than 29,000 people.
Exports are growing
The value of exports surpassed € 1,880M.
It represents 0.94% of the total exports in Spain.
Important trade partners
The target market is still the rest of the EU, which takes 60% of exports.
Asia and Sudamerica are playing an increasingly important role as big importers of
Spanish technology and products.
Source: FENIN annual report 2012
80
5. Business opportunities: Aerospace
81
5. Business opportunities: Aerospace
Aerospace Industry in Spain
The Spanish Aeronautics Industry is the 5th in Europe in terms of turnover (€ 6.9
billion in Aeronautics in 2012) and employment (<38,000 employees).
The Spanish space sub-sector is the 5th one at the European level, employs more than
3,300 people and had a turnover of € 737 million in year 2012.
Half of the commercial aircraft in the world uses Spanish technology.
R&D:
The investment in R&D activities reached 764 M€
in year 2012 (11% 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.
82
5. Business opportunities: Aerospace
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
83
5. Business opportunities: Automotive
84
5. Business opportunities: Automotive
Key figures: Automotive Industry in Spain
Spain is the 2nd largest car manufacturer in Europe and the 11th 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
85
5. Business opportunities: Automotive
Key figures: Automotive Industry in Spain
Vehicle manufacturing in Spain was up 9.3% in 2013 reaching 2.163.338 units
Automotive Industry turnover accounts for 10% of Spanish GDP.
300,000 people directly employed in the Industry.
2,000,000 jobs linked to the Sector.
1,9 Million vehicles exported to 130 Countries in 2013 Export value €25bn.
Vehicle exports increased by 8.7% in 2013 to 1,879,974 units.
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.
€63 Million Annual average of Investment in Professional Training by Car Manufacturers.
Sources: ANFAC (Spanish Association of Vehicle Manufacturers
SERNAUTO Automotive Parts Exporters Association ) Last data available
86
5. Business opportunities: Automotive
Key figures: Foreign Direct Investment
New Industrial Plans have been approved by the 9 Multinational brands
established in the country.
5 billion€ investment in course 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”.
Sources: ICEX-INVEST; Real Instituto Elcano; Ministry of Economy and Competitiveness (dataInvex)
87
5. Business opportunities: Automotive
News /Investment Projects
RENAULT
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)
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
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 Ford Kuga. 1,1
billion€ investment has been committed through the period 2009-2013.
MERCEDES
The company 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).
88
5. Business opportunities: Automotive
PSA Peugeot-Citroën
It 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, 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
up to 4 Billion Investment in 23 new OPEL models 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 is one of the most productive and flexible plants 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).
89
5. Business opportunities: Automotive
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.
1,000 companies belonging to 720 groups provide customized Service to Car Manufacturers
191,000 people directly employed in the Sector
Turnover of €27.5 bn in 2012, 65% exported to 150 countries.
EU, USA, Mexico, North Africa and BRIC’s top ranking destinations of Spanish Exports.
Source: SERNAUTO (Spanish Association of Automotive Parts and Accesories Manufacturers). Year 2012 (last data available).
90
5. Business opportunities: Automotive
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 his fifth R&D&i
Center in Spain. It will be located in the Technology Park of Paterna and will employ 200
Technicians.
MAHINDRA
The Indian giant, leader manufacturer of Components in Asia, buys a 13.5% share of
Spanish company CIE Automotive for € 96,24Million sealing an strategic alliance
worldwide.
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 in its Plant of Guarnizo (Cantabria-Spain).
MAFLOW is one of the larger manufacturers of Air Conditioning tubes worlwide. Guarnizo’s
Plant is its only manufacturer Center in Spain with 100 employees.
Source : SERNAUTO (Spanish Association of Auto-Parts Exporters)
91
5. Business opportunities: Automotive
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.
74 Spanish Companies and Technology Centers have taken part in 60% of the European ecoelectromoblity Projects.
Spanish Companies are leaders of 13 of these Projects including the 3 European projects on new
batteries: NECOBAUT, SOMABAT, GREEN LION.
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 document New Opportunities for the Clean Vehicle Sector in Spain. www.move2future.es
100 Eco electro mobility projects with Spanish Participation and 80 New Products/Services compiled
for Green Car Initiatives.
92
5. Business opportunities: Automotive
Eco-Electromobility/Spanish Capabilities
RENAULT, MERCEDES -BENZ, PEUGEOT, CITROËN, FORD, NISSAN and SEAT have
already made steps to produce electric powered vehicles in Spain.
AUTO-PARTS companies with plants in Spain are already working on specific
components and systems for electric and hybrid vehicles.
93
5. Business opportunities: Automotive
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.
94
5. Business opportunities: Logistics and Transport
95
5. Business opportunities: Logistics and Transport
Logistics and Transport Industries in Spain
Spanish Logistics Sector ranks among the top-20 in the world according to
the latest Logistics Performance Index of the World Bank (11th among the EU
countries)
Turnover 2012
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
44,2%
Road & Rail Freight
45,3%
8,7%
1,8%
Sea Freight
Air Freight
Warehousing and other activities related to transport
Companies > 200,000
• Structure: High market concentration
• 90% SME’s
• 10 big companies manage 27% of the business
Source: National Institute of Statistics, 2014.
“Logistics Performance Index”, The World Bank.
96
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.
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
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.
97
5. Business opportunities: Logistics and Transport
Success stories
• DHL Spain is the key input platform throughout the DHL network to Latin American
markets. Invest in Spain.
• 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.
• 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.
98
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 in 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 operating base in the port of La Coruna 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) establishes a new logistics center in Illescas from which
enhance the delivery of spare parts and accessories of the brand in Spain.
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.
99
5. Business opportunities: Enviroment and Water
100
5. Business opportunities: Enviroment and Water
Environmental Industry in Spain
The Spanish environmental sector moves around 11 billion euro – 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 euro 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:
547 kg/inhabitant in 2009
Emissions:
8.02 tonnes of CO2 equivalent /inhabitant in 2009
Water consumption:
154 litres/inhabitant/day in 2008
101
5. Business opportunities: Enviroment and Water
Environmental Industry in Spain: key players
Public entities
EUROPEAN
ENVIROMENTAL
AGENCY
SPANISH MINISTRY
OF ENVIRONMENT
AND AGRICULTURE
•
•
•
Provides sound &
•
•
Makes proposals
independent
and develops the
information
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
Private companies
www.magrama.es
•
•
MUNICIPAL
AUTHORITIES
Subsidies
Fines
Refuse
collection, street
cleaning etc
Local
environmental
authorities, often
called ‘concejalias’
102
5. Business opportunities: Enviroment and Water
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
103
5. Business opportunities: Enviroment and Water
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”
104
ICEX / Invest in Spain
your partner in Spain
6. ICEX-Invest in Spain
Orense 58, 3rd floor
28020 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: [email protected]
www.investinspain.org
105
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
106
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
107
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
108
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
109
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 98 projects for a total
amount of € 11 million in high added value sectors such as
Biotechnology, IT, Renewable energies and Environment
110
ICEX / Invest in Spain
your partner in Spain
6. ICEX-Invest in Spain
Orense 58, 3rd floor
28020 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: [email protected]
www.investinspain.org
111