Madrid: a lightening rod for foreign investment

Madrid: a lightening rod for foreign investmentMadrid emerged as the leader for foreign investment in Spain last year, bringing in 14,520 euros, the greatest amount since 2011. That figure also represents 61.1 % of the total of this type of investment.

The fourth quarter of the year saw an even greater proportion going to Madrid as 80.7 % of the total investment in Spain found its way to the capital.

The figures come from data published this month – May – by the Ministry of Economy and Competitiveness.

That fourth quarter brought the total amount attracted by Madrid during the year to 5,595.6 million euros. Comparing that to the figures seen up to the third quarter in 2016, it comes to an increase in foreign investment in the community of 9.7 %.

What it means on the ground

This investment has contributed to the growth of Madrid’s economy which increased  3.7% on the previous year with more than 119,000 new jobs being created.

For other areas in Spain, Catalonia received 13.1 percent of foreign investment during the year, Andalucía 1.4 % while the Basque Country attracted 0.1 %.

Ángel Garrido, the Minister of Presidency and Justice, and spokesman for the regional government, addressed this at a press conference, saying that economic matters in the community of Madrid were ‘doing well,’ and the figures were, ‘very good.’ He also stating that it showed Madrid remained an attractive taxation for foreign investment. He added, ‘The Community of Madrid is a friendly territory of companies,’

In the whole of last year, foreign investment in the region increased by 2,879.7 million euros. This represented an increase of 24.7 % on 2016.

The comings and goings

Looking at where the investment is coming from, to land in Madrid, 38.1 % originated in Luxembourg, with the Netherlands making up 21.3 %. Next came The United Kingdom with 15.8 %, France, with 6.5 %, then Germany with 4.2 %.

The main sectors where foreign investment has been targeted in Madrid are real estate activities with 16.9 %, telecommunications with 9 %, manufacture of other non-metallic products at 7.8 %, with Civil Engineering bringing in 6.9 %. In addition to this, financial services, excepting insurance and pension funds, attracted an investment of 11 % of the total.

According to the regional government, since the crisis began in 2008, the Community of Madrid represents 57.2 % of all foreign investment in Spain.

For more information, please contact corporate law firm Argali Abogados

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