The second largest country in Western Europe, Spain dominates the Iberian Peninsula. It borders Portugal on the west, France and Andorra to the northeast, the Mediterranean Sea to the east and south, the Atlantic Ocean to the west and the Bay of Biscay to the north. This unique location makes Spain very attractive to foreign investors. Its highly developed economy and stable political situation help to ensure that investments in Spain are successful. As part of the EU, Spain has become a very important player in international affairs since emerging from international isolation during the Franco era. Spain’s history of invasion has had a massive impact on its civilisation and cultural variety.
Understanding the country and its value in Europe is crucial to successfully doing business in Spain. Any organisation planning to do business in Spain could benefit from Communicaid’s cross cultural awareness training program Doing Business in Spain. The following are some of the key benefits you can take advantage of when doing business in Spain.
Geographical Location and Climate
Spain is Europe’s second most mountainous country after Switzerland and is a perfect location for any organisation wishing to develop business in Western Europe. Spain has access to the Atlantic Ocean and the Mediterranean Sea with numerous large ports and a merchant fleet. Spain’s borders with France and Portugal encourage the flow of capital and commerce within Western Europe. The predominantly Mediterranean climate is also very attractive, with mild winters and hot and dry summers which encourage visitors and potential customers for many businesses.
Stable Political Situation
Since emerging from international isolation during the Franco era, Spain has steadily become more active in international affairs. After the death of Francisco Franco in 1975, Spain gradually began its transition to democracy which has expanded Spanish diplomatic and security relations with the West. Spain has been an active member of NATO since 1982 and the European Union since 1986. Spain’s EU membership represents an important part of its foreign policy and supports the efforts of European political mechanisms. A stable political situation and diplomatic relations guarantee development opportunities for organisations doing business in Spain, and reduces the risk of potential conflicts and disagreements.
Over the last four decades Spain’s social and economic structure has changed enormously. Joining NATO and the EU established Spain on the international market and created good relations with many countries. Since joining the Eurozone in 2002 Spanish economic growth has been well above the EU average. Spain is the eighth largest industrialised economy in the OECD (Organisation for Economic Co-operation and Development). For the past five years, the Spanish economy has also experienced one of the strongest rates of GDP growth in the European Union which makes it the most dynamic within the EU. Also, in the space of 40 years the Spanish tourism industry has grown to be the second largest in the world. Spain’s economy is the ninth largest worldwide and the fifth largest in Europe according to the World Bank. Investors could hardly wish for a more advantageous business environment.
Spain offers many developing benefits for new businesses including low labour and transport costs. As a member of the European Union, Spain benefits from the transit of goods within the EU without unnecessary formalities, including exchange rate fluctuations and transaction costs. The European Union is very generous towards Spain with its structural and cohesion funds. Also the Spanish Government offers various incentives and flexible policies for developing businesses. More recently, the Spanish Government has pursued policies aimed at creating a welcoming environment for foreign investment.
The overall profile of Spain offers numerous benefits for foreign businesses including its geographic location and climate, stable government and economy and attractive development opportunities. Doing business in Spain effectively requires knowledge of the country’s business culture and its national mentality. International organisations interested in doing business in Spain would benefit from Communicaid’s Spanish language and cross cultural awareness training courses such as Doing Business in Spain to gain necessary insights into the Spanish culture and environment.
© Communicaid Group Ltd. 2010