• Operating Costs
• Tax System
• Generous Incentives for investment

Operating costs

• More competitive salary costs than the major European economies.
• Competitive costs for office and industrial warehouse rental.

 

• Affordable utility and telecommunications costs.

 

Tax system

• Business tax (30% and 25%, reduced for SMEs) below countries such as the U.S.A. and the OECD average.

 

• In addition, Spain has fiscal pressure below the UE-27 and eurozone average.

 

• Attractive system of business tax deductions (actual rate: 18.0%).
• One of the lowest VAT rates in the EU (16%, 7% reduced rate). Starting in July 2010, the VAT was raised to 18%, 8% for the reduced rate, as a deficit reduction measure.
• Tax incentives for R&D&I are among the best in OECD countries, with Spain ranking 2nd behind France.

 

Generous incentives for investment

• Extensive and comprehensive system of aid and incentives developed by the central government and other government bodies, with a special emphasis on promoting permanent employment and research, development and technological innovation (R&D&I):
  • Training and hiring incentives for certain types of workers, offering business owners significant savings on labor costs.
  • Numerous financial and fiscal incentives to promote innovation, technological improvements and R&D projects in sectors which are considered key due to their growth potential and impact on the Spanish economy.
• In addition, as an EU member, Spain has access to European aid programs targeting depressed areas. These supplement development plans financed by the Spanish government.

 

STRUCTURAL FUNDS

REGIONAL INCENTIVES

(Map being updated)

Last updated: 29|09|2011