Spain is a country that is located on the western front of the Europe continent. From being located at one of the most strategic places on earth to recently coming out of an economic downfall, the country has seen its share of uprises and defeats. The recent downfall has helped the country to set right all of the losses occurred due to the economic downfall and has paved the way for the government to ease taxation and introduce new free zones, incentive and much more that has caught the eyes of investors and are ready to invest in Spain. Here are some reasons to consider before setting up a company in Spain.
Benefits of Setting up Business in Spain
Before all of this, let us know the benefits of starting a business in Spain. Any country you start a business it has its share of advantages and disadvantages. Here are some benefits of starting a business in Spain
Strategic Geographical Location
Being a country that is located on the Iberian Peninsula, Spain has a massive advantage in terms of its location. The country is one of the main ports for the trans-Atlantic trade route and is the only country that shares borders with the African Continent (Morocco). The country also serves as a checkpoint before entering the Mediterranean Sea, onwards to Suez Canal, which is the connecting route for ships travelling from the Americas to South East Asia. This route is faster because it avoids the trouble of going all around the African Continent, to reach India and South-East Asia. Moreover, the country's strategic location has boosted exports, thereby increasing the GDP figure. These factors have pushed investors to form a company in Spain.
Open to the Foreign Direct Investment (FDI)
Spain is a country where there is no bias in terms of taxation or facility provision between local investors and foreign investors. In fact, according to the FDI index of Restrictiveness, the country is ranked 9th in terms of open regulations towards international investment. These factors and a high international profile of the economy of Spain has made the country a key platform for business establishment. The country has already over 12,300 foreign companies in all sectors of the economy, Industry, Technology and Services. The country has also been ranked 13th in the world in terms of inward FDI Stock, and 12th in terms of outward FDI Stock.
If there is one country in the world that is not facing any kinds of economic downfall as of 2019, it is Spain. The country has overcome a huge economic downfall from the years 2008-2014 and has recently recovered from it, which means that the economy is currently growing, thereby creating new jobs. Moreover, due to the recession, many people lost their jobs, companies have gotten bankrupt, which means there is the availability of cheap and highly skilled labour. These factors have also led the business to be established in Spain
Quality of Life
One of the most important things that are important for a company to function correctly is to treat your employees with utmost care. A happy employee will work better and will deliver better results. One way to improve an employee's morale is t provide him with a quality life, and a country like Spain is no less than a paradise on earth. Being a country that attracts millions of tourists every year, already proves the point of how living in Spain would be.
Once you know the benefits of how to set up a business in Spain, it is necessary to know what business you want to establish in Spain. Here are some of the business opportunities in Spain
Smart Grid Companies
The Government of Spain, in response to the rising global warming, has announced the concept of "Smart Grids". This has emerged from the Europe 2020 Strategy, that proposes a 20-20-20 strategy, that has three goals. First is to reduce greenhouse gas emission by 20%, Second is to increase the energy generated from renewable sources by 20%, and the third is to increase energy efficiency by 20%. To promote all of this, Spain is favourable to companies who cater to this kind of service
Ultra-Fast Network Providers
A Network Service Provider is a firm that provides network access to individuals, in the form of a SIM, that is to be inserted on a mobile device. In recent times, most of the individuals are on the internet, and the most important thing that constitutes for the web is to have an Ultra-fast broadband network. An ultra-fast broadband connection is a connection speed that is equal to a connection speed of 100Mbps or more. To cater the needs of the citizens residing in Europe’s most developing economy, the country is entertaining Internet Service Providers to set up a branch office in Spain.
A FinTech company is a firm that develops financial services based on the presently available technologies. For example, PayPal is a FinTech company. What PayPal does is provide online payment services for online business, by linking your account with PayPal and pay for online purchases and services you utilise. Another example is the use of NFC (Near Field Communications) technology, which enables you to use your mobile phone as a mode of payment, by placing your mobile phone on the payment terminal. The Spanish government is promoting FinTech companies to set up an office in Spain by reducing taxes and providing benefits.
Big Data Companies
Let us consider an example here. You are well aware that Google helps you search for anything on the internet. But where is all of that data stored? The information is stored in colossal database servers located all over the world, but segregating all of the data is a cumbersome task. This is where big data companies come handy. What a big data company does is manage the vast loads of information onto database servers, without causing any issues and without losing data. Also, some companies utilise these data to predict changes, detect patterns and trends to take some critical decisions. These companies are at a huge demand, and to promote the incorporation of big-data companies in Spain; the government is taking significant steps to enable those companies to establish without any hiccup.
With the internet becoming more and more accessible to people all over the world, there have been some issues wherein the companies have been attacked by the use of malicious software, viruses and much more. What a Cybersecurity Company does is collect tools, security concepts, security safeguards, risk management approaches, best practices to ensure the protection of an organisation and the users in the cyber network
So, here are five business opportunities which you can consider while setting up a company in Spain. We at Business Setup Worldwide do offer our services in Spain. Our expert team of consultants have countless years of experience in providing the right service for you. What are you waiting for? Contact us today and know more about our services.