INVEST IN SPAIN and Garrigues present the new features of the Guide to Business in Spain 2012
This morning, INVEST IN SPAIN and the law firm GARRIGUES presented the 27th edition of the Guide to Business in Spain. The event, which was chaired by José Carlos García de Quevedo, Chief Executive Officer of INVEST IN SPAIN, and Fernando Vives, Managing Partner of GARRIGUES, was held at the Ministry of Economy and Competitiveness where the speakers reviewed the most important aspects included in the new edition, published in English and Spanish.
The Guide to Business in Spain 2012 is a practical and comprehensive instrument, providing foreign investors with all the information they need to set up a business in the country. As well as presenting an overview of Spain, the Guide covers the required instruments for setting up a business, the tax system, investment aid and incentives, the current employment legislation and social security rules, intellectual property, the legal system, and the tax implications of e-commerce. Last year’s edition received a total of 60,000 visits: 20,000 in Spanish and 40,000 in English.
The latest data collated by the Foreign Investments Registry reveals that Spain is the ninth largest recipient of foreign direct investment worldwide in terms of stock, with more than 11,000 foreign companies employing almost 1.5 million people.
According to the data compiled by INVEST IN SPAIN, investments made here need to mature for an average of two years in order to be effective. However, as a counterbalance to this lengthy initial period, the benefits of foreign investment to the economy in terms of creating wealth and employment are stable and long term. Accordingly, the Guide to Business in Spain 2012 provides investors with comprehensive and detailed information on the determining factors affecting their investments.
New developments in 2012
In its latest edition, INVEST IN SPAIN reflects the main new legislative changes, with special emphasis on the planned restructuring and rationalization of the Government’s structural reforms, which aim to achieve budget stability, boost the competitiveness of Spanish businesses, foster medium- and long-term growth and the creation of lasting and quality employment, and secure sufficient financing for the Spanish economy.
“The new edition of the Guide to Business contains detailed information on all of the reforms approved in recent months. The regulatory framework, taxation, incentives and employment legislation have all undergone extensive changes”, explained José Carlos García during the presentation, changes which are detailed in the new Guide.
There are several developments in the area of employment, such as the introduction of mechanisms to encourage internal flexibility within companies, plans to foster employment, or the use of temporary collective layoffs or temporary suspension of working conditions. These aim to provide employers with the tools necessary to meet business needs without having to resort to labor-shedding measures.
Furthermore, public authorities at central government level are keeping to their commitment to promote investment in “strategic” industries and support private initiatives in research, development and innovation (R&D&I), as explained in chapter IV of the Guide. Some examples of this commitment are: the creation of the Strategic Fund for Scientific and Technological Infrastructure, which aims to promote the availability and renewal of this infrastructure; the strengthening of the Industrial Technological Development Center with the establishment of new programs (INNPRONTA, INNTERNACIONALIZA and INNVOLUCRA); the pledge to enhance the competitiveness of companies in key industries through the Comprehensive Industrial Policy Plan (PIN 2020); and the recasting of the ICO credit lines to make it easier for SMEs to obtain financing.
Lastly, as far as taxes are concerned, the Government has approved a range of legislative measures, explained in the Guide, designed to balance the budget and consolidate public finances.