Looking for new markets? With a Gross Domestic Product of $1.2 billion, Spain is the fourth biggest economic power in Europe and an attractive, competitive and prized destination for international expansion.
Check out what we believe are the 3 main advantages of operating in Spain and start planning your strategy for growth abroad.
- Access a large market
Access to 46 million potential buyers doesn’t sound too bad, does it? As a major economy in the European Union, Spain offers all the ease of trade with the EU that this entails (e.g. simple procedures, less tax burden, free movement of goods, capital, services and people).
Spain not only has a thriving domestic market, but is also a strategic gateway to wider markets, such as Latin America (more than 600 million consumers) thanks to its historical and cultural ties, and the Middle East and North Africa (500 million consumers), thanks to its strategic position, proximity and infrastructure. In both regions, Spanish companies are well established and enjoy great prestige.
In June this year, Alfombra Roja Consulting accompanied Swedish companies on a trade mission to Spain. Mattias Lundborg, sales director at Mobilaris Industrial Solutions AB, was able to appreciate the potential for reaching other nearby markets through Spain. He summarizes the experience as “a great help to introduce our products to the Spanish market,” adding: “I can see other markets for AB Mobilaris that would be equally important. And these types of projects would also help those places.”
Additionally, if you are based outside the Eurozone, entering Spain grants you immediate access to the EU, the world’s largest common market, with a population of 500 million people.
- Operate in a strong economy
Spain’s post-pandemic economic recovery is in line with that of most of Europe. GDP growth forecast for this year and the next is 5.5% and 4% respectively, higher than the European average, according to Oxford Economics 2022 (last updated in April 2022).
Based on the Business Climate Survey for Spain 2022 published by Team Sweden in Spain, Swedish companies are experiencing a better commercial climate and a more positive outlook for their business this year than in 2021. All of this encouraging data makes Spain a leading candidate when choosing the next destination for your business.
It is also worth highlighting that Spain is the recipient of European funds and the location of multiple greenfield projects. There are many economic incentives available for companies wanting to come to Spain. All of this makes the country an attractive place for investments, innovation and growth over the coming years.
Juha Sepponen from TactoTek Oy was part of the Finnish delegation of companies that visited Spain in June. He comments on the incentives and the importance of harnessing them appropriately: “I think this is a very good way to support the companies and their initiatives to get in the Spanish market and also to get the financing from the EU and spend that money wisely in this kind of new opportunity.”
- Benefit from developed infrastructure and quality networks
Spain is a competitive and international logistics hub for trade, ranking 7th worldwide in infrastructures, according to The Global Competitiveness Report (World Economic Forum). The country has a wealth of resources for import and export, mobility and transportation. For instance, Spain has the longest high-speed railway network in Europe, and the third most extensive in the world (3,402 kilometers) and the best ratings worldwide for the quality of its railway system, roads and airport services.
When it comes to sea trade, Spain is a major maritime platform and home to three of Europe’s key ports (Valencia, Barcelona and Algeciras), It boasts nearly 50 state-owned ports
While some of the features mentioned above mostly benefit companies looking to export goods, others are more beneficial for foreign companies starting up a branch office or a subsidiary. Some industries and export sectors that have proven to offer attractive business opportunities for Nordic enterprises in particular are the automotive, aerospace and life science industries, the renewable energy sector, ICT solutions and manufacturing. Do you see a niche for your business?
We are internationalization consultants with more than 17 years of experience helping companies to gain a toehold in foreign markets and grow. Book a meeting to discover where to start your journey so that you can enjoy these advantages too!
Sources: Business Sweden and ICEX Trade and Investment
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