Tips and options to invest in Spain

The main investment options currently available in Spain to foreign investors are the following (please note that each option entails different administrative and legal procedures to be carried out, listed below is a mere overview).

Opening a new business

A study of the market is vital with this option. An experienced law firm will have those studies already done, saving you time and money.

Buying and taking over an established business

Since the business was already established, you can see what did or did not work and make changes where necessary. You can implement new ideas to make sure that the business stays or becomes lucrative.

Opening a subsidiary

The opening of a subsidiary in Spain involves the creation of an independent legal entity with its own legal personality.

Creating a Franchise

The franchising business must start defining the fundamental aspects of the business:

  • Transmission of the business model
  • Transfer of the corporate image, brand, commercial name, and other elements of industrial property
  • Support for the franchisee during business development

As a foreign investor, it is very important to be abreast of the profitable industries in Spain. With the consistent upturn of the Spanish economy, many foreign investors have found themselves more confident in investing. Investors have seen major returns in the following industries:

  • Investment funds
  • Biotechnology
    • Energy : Sustainable Energy
    • Gas
    • Natural gases
    • Mineral mining
  • Motor industry
    • Car production (Spain is one of the top 8 out of 15 car producers in the world)
    • Wholesale and retail trade
    • Machine-tooling
  • Real estate
    • Renting
    • Construction
    • Building renovation
  • Food and Agriculture
  • Smoking alternatives
    • Vapor cigarettes
    • E-cigarettes

Substantial investments by renowned international investors prove the excellent conditions:

2012

Warren Buffett, through his conglomerate Birkeshire Hathaway Inc., bought a portfolio of life insurance policies of Caixabank S.A., a Barcelona Based Bank, for €600 million.

2013

Bill Gates, co-founder of Microsoft, purchased shares representing 6% of Fomento de Construcciones y Contratas, S.A. (FCC), a major Spanish construction firm, for €113 million.

Goldman Sachs and Azora purchased a portfolio of residential apartments from the regional government of Madrid for €201 million.

2014

George Soros, a renown investor worth over €21 billion, bought a 3.1% stake in FCC from philanthropist Esther Koplowitz, FCC’s largest shareholder and one of the richest women in Spain, for €70 million.

Vodafone Group PlC, the world’s second-largest wireless carrier, purchased the major Spanish cable operator Grupo Corporativo Ono S.A. (ONO) for €7.2 billion.

2015

German carmaker Volkswagen Group has officially guaranteed a €4.2 billion investment in its Seat brand and VW plants in Spain.

This article is not considered as legal advice

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