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Doug Barrowman Spain Investment Decision certainly a Good Move to Capitalize on the Growing Market

Doug Barrowman Spain visit last month was aimed to explore new business opportunities in the country. Spain has the sixth largest FDI stock and is the sixth largest investor in the European Union (UNCTAD, 2017).

After FDI dried up due to the crisis in the Eurozone, FDI to Spain have recovered thanks to the country becoming more competitive and to the increased confidence of investors. In 2016, flows to Spain increased by almost 50% reaching USD 16.8 billion. (USD 11.9 billion in 2015)

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Doug Barrowman in Spain

In terms of FDI appeal, Doug Barrowman says, Spain’s strengths include: cultural proximity to Latin America, with the presence of a number of Spanish multinational companies, the boom in tourism, its highly efficient transport network and its development of renewable energies. Spain aspires to become one of the world’s key research actors. To this end, it has developed the ‘Malaga Valley’ project, whose promoters are hoping to construct the largest European research and innovation centre dedicated to information and communications technologies (ICT).

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Doug Barrowman

Why You Should Choose to Invest in Spain

Strong Points
Douglas Barrowman feels that Spain’s main strong points are flexibility and adaptability of economic operators and the quality of life the country offers.

Weak Points

The country’s weak points are, according to Douglas Barrowman, low productivity of its manpower, its weak competitiveness as well as a growing trade balance deficit. The complexity of the regulation system with regard to the 17 Autonomous Communities is also a hindrance to investment.

Government Measures to Motivate or Restrict FDI

Spain applies the principle of free establishment and non-discrimination. Foreign investors can operate any type of business and under the same conditions as a local investor. The CEE Council Directive no. http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31988L0361:EN:HTML” target=”_blank”
88/361/CEE dated June 24, 1988, concerning the free movement of capital between the residents of member States was adopted in the Spanish legislation by Law no. 18/1992 of July 1, 1992, and came into effect on July 4, 1992 and by Royal Decree 1816/1991 no. 1816/1991 of December 20, 1991 on Foreign Economic Transactions.

The Government provides various incentives for investors, such as grants, tax benefits, professional training, preferential access to credit, etc.

The gaming, television, radio and air transport sectors are protected by restrictions for the investors residing outside an EU member country; it is the same for businesses manufacturing and selling arms. In the latter case, these restrictions also concern investors within the community.