Spain – the New Miami of Europe
Here at The Tenant Solution (TTS), based in Madrid and Barcelona, Spain, we have identified several factors that indicate Spain is becoming the new “Miami” of Europe. Read on as we describe and analyze, from a general point of view, the determining factors that explain why Spain is becoming an optimal option for large multinational corporations when establishing their headquarters and developing their businesses in European territory.
Current businesses are committed.
Spain is among the top 10 countries in the world to receive Foreign Direct Investment (FDI). This is due to its high degree of openness and the favorable legal framework for these investments, leading the country to receive investments for initiatives that add high value and intensive knowledge and technological input.
Spain is a country belonging to the European Union (EU) with a high degree of ambition, modernity and innovation, endowed with human and technological resources that make it very attractive to the international business community. It has a modern and complete network of infrastructures: it is the first European network of high-speed trains, motorways, and dual carriageways, as well as three of the busiest container traffic ports and two of the largest airports in Europe … with a broad system of grants and incentives at European, national, regional and local levels, from which investors can benefit.
Spain has around 13,000 foreign companies. All of them benefit from an attractive business climate and a tax system that encourages investment:
- The tax treatment of R & D & I is one of the most favorable in the OECD countries
- The special tax regime for international business holdings is among the best in Europe.
- 80 double taxation agreements signed with countries representing 95% of world GDP
Location is an ideal springboard.
Spain maintains the largest number of double taxation and investment protection treaties with Latin America. Likewise, Spanish companies maintain a leading role in Latin American economies. Both factors are key to turning Spain into a springboard for doing business in Latin America and for Latin American companies to tackle European markets. Spain has also become a strategic base for multinational companies expanding in the European and Latin American markets. Numerous European and Asian companies (such as Winco Nixdorf, British Telecom, Huawei, etc.) have established their headquarters for Latin America in Spanish territory, while other Latin American companies, such as Cemex, Pemex, Votorantim, etc., have chosen Spain as a corporate center for its operations in Europe. The geographical proximity of Spain to the markets of North Africa and the Middle East completes its extraordinary area of influence.
An Advanced Workforce.
It is also worth noting the qualification of human resources highly appreciated by the foreign entrepreneur:
- The workforce stands out for its skills in advanced preparation, creativity and dynamism.
- Labor costs in Spain, in terms of cost per hour, are below the EU-27 average.
In the field of innovation, we must highlight the existence of more than 80 technology parks, which host the activity of 5,515 technology companies.
Consumers are aplenty.
Spain is seen as a great market and a bridge between Latin America, Europe and Africa – holding a strategic position to access a potential market of more than 1.2 billion consumers in Europe, Latin America and North Africa.
On the topic of consumers, the Spanish market is one of the largest in Europe with 47 million customers, not including the more than 56 million tourists who visit Spain every year – similar to Miami. As a member of the EU, all of these countries have direct access to Spain. Because of the above, together with the unbeatable climate, quality of life, low basic prices, people and gastronomy, Spain has securely positioned itself as the new Miami of Europe.
Want to learn more? Contact TTS.