Foreign investment encouraged by Spanish public institutions

Foreign Investment in Spain

The Community of Madrid has signed an agreement with the Chamber of Commerce, Industry and Services of Madrid to help promote foreign investment in the city and region.

The Community is helping to finance the office of Invest In Madrid to the tune of €1.35 million.

As per the agreement, the money will be used to finance the office, investing in its headquarters and supporting maintenance work. The community will now also participate in the preparation and conduct of meetings and will be involved in investment relations to promote the attraction of foreign investment, as well as providing strategic advice and institutional support.

In addition, with its extra financial resources, the Chamber of Commerce will manage the necessary staff and ensure the administration and management operations are run economically.

The Chamber is set to develop a strategy that will join the efforts of the Community of Madrid to run as a new financial center for Europe.

As a result, the regional government joins Invest in Madrid to try to attract multinational European institutions, financial institutions, investment funds, startups and international talent who are looking for alternatives after Brexit.

PUTTING IT INTO ACTION

Since the agreement was signed, the Spanish cabinet has authorized foreign companies Altran Technologies and Epi Europrop International GmbH to invest in Spanish companies working towards national defence.

This came about as a result of a proposal by the Defense Minister following a report from the Foreign Investment Board which gave a favourable reception to the investment possibilities.

Two million Euros will be invested by the French company Altran Technologies SA following this agreement with the money going into Spanish company Altran Innovacion SL Unipersonal, a global leader in innovation and hi-tech engineering.

Among its other functions, it designs mechanical systems for use by the military in their vehicles, warships and aircraft. And it develops and designs software equipment, also for use by the military.

Another agreement authorized was an investment by the German Epi Europrop International GmbH in Spanish society Epi Europrop International SL Unipersonal Madrid. This will facilitate the German company’s opening of an office in Madrid with its client Airbus Military SL. From there it hopes to advise on international engineering activities and sales of aircraft.

PULLING THEIR WEIGHT

Against this backdrop, a new report out this month shows that while subsidiaries of foreign companies accounted for only 0.6% of all companies in their sectors in Spain in 2014, they generated 28.7 per cent of turnover and 13.3 per cent of the country’s employment.

This all adds up to 1.27 million jobs and a turnover of more than €460,000 million. France, the US and Germany were among the main countries responsible.

In that same year, 10,932 subsidiaries of foreign companies were registered in the sectors of industry, commerce and other non-financial market services. These numbers come from INE, the National Statistics Institute.

For more information, please contact corporate law firm Argali Abogados.

 

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