INTERES Invest in Spain

There are numerous financial (non-refundable subsidies, soft loans or a combination of both) and tax incentives for activities pursued in certain industries deemed to be a priority due to their potential for growth and their impact on the Spanish economy as a whole. The Autonomous Communities grant similar incentives in most of these industries.

These incentives include most notably those aimed at fostering innovation, technological improvement and research and development projects, which have been one of the main priorities of the Spanish authorities in recent years.

In this connection, the Government approved the VI National R&D&I Plan for the 2008-2011 period (in line with the VII European Union R&D&I Framework Program for the 2007-2013 period), which is expected to double the financing with respect to the preceding period and improve incentive management (www.plannacionalidi.es ). Subsidies granted under this Plan may be co-financed with EU Structural Funds.

The basic objectives of the National R&D&I Plan (2008-2011), which were set up in line with the provisions of he National Strategy for Science and Technology (Estrategia Nacional de Ciencia y Tecnología or ENCYT), are, inter alia, (i) placing Spain at the cutting edge of knowledge; (ii) promoting a highly competitive corporate fabric; and (iii) creating a favorable environment for investment in R&D&I.

In summary, the National Plan for R&D&I for the 2008-2011 period may be said to have a structure based on four areas directly related to the Plan’s general objectives and linked to instrumental programs which pursue specific objectives: (i) generating knowledge and capacities; (ii) fostering cooperation in R&D; (iii) industry-wide technological development and innovation; (iv) strategic actions (health, biotechnology, energy and climatic change, telecommunications and information society, nanoscience and nanotechnology, new materials and new industrial processes).

In addition, in order to meet the objectives of the 2008-2011 National R&D&I Plan, and based on the four areas identified, a series of instruments are envisaged, grouped along six Instrumental Action Lines (LIA): (i) Human Resources (HR); (ii) R&D&I projects; (iii) strengthening of institutions; (iv) infrastructure; (v) use of knowledge; and (vi) structuring and internationalization of the system.

These Action Lines are implemented through 13 National Programs (e.g. the National Program for Fundamental Investigation Projects, the National Program for Applied Research Projects, etc.) which, in a departure from the thematic model of previous plans, represent the main action instruments of the National R&D&I Plan.

Pursuant to the 2008 Work Program (approved by the Standing Committee of the Inter-Ministry Science and Technology Conference on December 17, 2007) and the provisions of Order ITC/435/2008, of February 19, 2008, approving the 2008 Annual Integrated Aid Plan of the Ministry of Industry, Tourism and Trade and establishing measures aimed at improving its application, the majority of the Orders regulating the Instrumental Action Lines have been published in the first few months of 2008, with only the Order relating to the strengthening of institutions still to be published(www.mityc.es/es-ES/Servicios/Ayudas/).

Thus, for example, Order PRE/621/2008, of March 7, 2008, regulating the bases, aid regime and management of the Instrumental Action Line for R&D&I projects, within the framework of the 2008-2011 National Plan for Scientific Research, Development and Technological Innovation, was published in the Official State Gazette of March 8, 2008.

The Instrumental Action Line for R&D&I projects includes the following National Programs: (i) Fundamental Investigation Projects; (ii) Applied Research Projects; (iii) Experimental Development Projects; and (iv) Innovation Projects, and the respective calls must be adjusted to the content of the above-mentioned Order.

Notwithstanding, the main characteristics of the aid that can be granted under the general regime for this Instrumental Action Line can be summarized as follows:

Furthermore, in an attempt to bolster the investment of enterprises in R&D, the Spanish Government approved the INGENIO 2010 Program, aimed at increasing both public and private investment in R&D&I by starting up various strategic lines (CONSOLIDER, AV@NZA and CENIT), which contain a wide range of measures to foster excellence in research, the performance of major integrated strategic industrial research projects, as well as convergence with the EU in relation to the indicators of the Information Society (www.ingenio2010.es).

Under the Plan Av@nza, aimed at converging with Europe in the parameters of the Information Society and notwithstanding the numerous and varied calls for loan applications within its four lines of action (Digital Citizenship, Digital Economy, Digital Public Services and Digital Context), it is important to note the ICO Line- AV@NZA Plan, in force through December 31, 2010 or until available funds run out (endowed with €952 million for the 2007-2010 period), which covers anything from the granting of loans to SMEs to finance access to information technologies and telecommunications through the granting of aid to young people and university students for the acquisition of computer equipment or the financing of a subscription to a broadband Internet connection for any resident of Spain.

Please also note the work of the Center for Industrial Technological Development (Centro para el Desarrollo Tecnológico Industrial or CDTI) in relation to the promotion of the technological innovation and development of enterprises through the granting of preferred loans in its various financing lines and providing technical advice and support to enterprises planning to submit projects under cooperative R&D&I Programs in Europe, such as EUREKA.

The most notable Projects in which Spain actively participates are the “Umbrella” Projects (EUREKATOURISM, EUREKABUILD, EULASNETII, FACTORY and EUROENVIRON) and the “Clusters” Projects (CELTIC, EURIPIDES, ITEA2 and MEDEA +).

For more information on Investment aid & incentives, you can download the following document: