Four Reasons Why Spain Is an Attractive Investment

Four Reasons Why Spain Is An Attractive Investment

Four Reasons Why Spain Is an Attractive Investment

Spain is back in business as it shrugs off a two-year recession and its banks clean up their balance sheets and recapitalise. With economic indicators improving thanks to government reforms, the big picture is looking much rosier than a year ago.

And top investors are back on the scene, focusing on some of the fundamental reasons to make an acquisition or set up a business in Spain. Those four reasons are:

• Spain is the gateway to Europe for Latin American, Asian and Eastern European investors. Its proximity to North Africa is also strategic.
• It has a highly qualified workforce.
• It has a highly developed infrastructure network.
• There a slew of tax incentives for foreign investors.

So who’s investing where and why?


China’s HNA Group, parent company of the country’s fourth largest airline Hianan Airlines, owns 24 per cent of Spanish hotel chain NH Hoteles, and earlier this month revealed its interest in buying the regional airport of Ciudad Real.

Spain is an attractive market for the Chinese with their huge investment capacity and insatiable demand for Western products and services.

HNA has international expansion ambitions and is betting on Spain’s booming tourism industry and vast infrastructure network to further its goals.

Located bang in the centre of Spain and on the high-speed AVE train line, Ciudad Real could become a European hub for Hianan Airlines, as well as a springboard to Latin America – also a target of the world’s second-largest economy.

Other international leisure groups have also invested in Spain’s tourism sector like North American hotel giants Hyatt and Four Seasons.


Most of Spain’s working population has completed higher education and its medical and engineering professionals, in particular, have won global prestige. And the Spanish healthcare system enjoys the reputation of being one of the best in the world for quality and efficiency. So the privatisation of some of its hospitals has fuelled the interest of overseas firms like the UK’s BUPA Sanitas and venture capital firm CVC Capital Partners.

Tax breaks and other incentives to boost foreign investment flows in Spain were an integral part of the Entrepreneurs Law, announced by the government last May. Apart from offering small businesses sweeteners for reinvesting profits and R&D tax breaks, the new law has also been designed to create an attractive environment for companies to set up shop in Spain.

Residency permits will be granted to people who invest in Spanish business and create employment opportunities in Spain.

For information on investing in Spain, contact corporate law firm Argali Abogados.

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