ABOUT SPAIN

Amongst all the countries in Southern Europe, Spain is a large and diverse country located on the Iberian Peninsula. It is the fourth-largest country in Europe by area and the sixth-most populous country in the European Union. The capital of Spain is Madrid, which is also its largest city and a major economic and cultural center. According to the report of the World Bank, Spain has been classified as a High-Income Economy. The currency of Spain is the Euro (EUR) and the value of Indian currency is significantly lower than that of the Euro (approximately 1 EUR = 89.97 INR at the time of writing this article). The population of Spain is approximately 4.88 crores as of 2025. The neighboring countries of Spain are Portugal, France, Andorra, and Gibraltar (UK overseas territory), and it shares a land border with Morocco via its enclaves of Ceuta and Melilla. The most commonly spoken language in the country is Spanish (Castilian), with several other co-official regional languages such as Catalan, Galician, and Basque. The majority of the Spanish population practices Catholicism, but other religions are also followed. Currently, there are 50 international airports in Spain, with Madrid-Barajas Airport and Barcelona-El Prat Airport being the largest. Regular flights are available from these airports to various parts of the world, offering excellent air connectivity. As Spain has extensive coastlines on the Atlantic Ocean and the Mediterranean Sea, it boasts numerous major commercial seaports like Valencia, Algeciras, Barcelona, and Bilbao, which are crucial for its extensive international trade requirements.

The standard corporate income tax rate for companies in Spain is 25%. However, special reduced rates may apply for newly established companies (e.g., 15% for the first two years of profit) and certain types of entities. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Spain has to be done with utmost care, keeping in mind the laws of the country. The Spanish Companies Act (Ley de Sociedades de Capital) and other relevant legislation provide clear guidelines for foreign investors to register a company in Spain. A foreign investor who is planning to start a business in Spain can form various types of companies, such as a Sociedad Limitada (S.L. – Limited Liability Company), Sociedad Anónima (S.A. – Public Limited Company), Branch, or Representative Office. A Sociedad Limitada (S.L.) formed and registered in Spain allows foreign investors to own 100% of the company.

In case an investor is planning to establish an S.L. or S.A. in Spain, Opesh Group will be helping you in taking the right decision for setting up your business in Spain and we will also guide you about how to follow the procedure while formulating your company in Spain.

Types of Business which can be started in Spain-

Tourism and Hospitality – Spain is one of the world’s leading tourist destinations, attracting millions of visitors annually to its beaches, historical cities, and cultural events. Opportunities are vast in hotel management, resorts, specialized tourism (e.g., rural, gastronomic, cultural), and related services. Renewable Energy – Spain has abundant natural resources for renewable energy, particularly solar and wind power. The country is a major player in this sector, offering significant opportunities for investment in large-scale projects, energy storage, and green technology development. Automotive Industry – Spain has a strong automotive manufacturing industry, being one of Europe’s largest car producers. Opportunities exist in component manufacturing, R&D for electric and autonomous vehicles, and supply chain integration. Information Technology (IT) and Digital Economy – Spain’s digital economy is growing, with increasing investment in startups, e-commerce, and digitalization across industries. Opportunities exist in software development, cybersecurity, AI, fintech, and digital transformation. Agri-food and Food Processing – With diverse agricultural production, Spain is a major exporter of food products. Opportunities lie in modern farming techniques, organic agriculture, food processing, packaging, and high-value food exports (e.g., olive oil, wine, fruits). Logistics and Transportation – Spain’s strategic location and extensive port network make it a key hub for trade between Europe, Africa, and the Americas. Opportunities exist in logistics services, warehousing, port operations, and multimodal transport. Life Sciences and Healthcare – Spain has a developing life sciences sector, with increasing investment in pharmaceuticals, biotechnology, and medical technology. Opportunities are present in R&D, manufacturing, and specialized healthcare services. Real Estate – The Spanish real estate market remains dynamic, particularly in coastal and urban areas, driven by tourism and foreign investment. Opportunities exist in residential, commercial, and tourism-related property development.

Advantages of Starting Business in Spain-

Spain is a full member of the European Union and the Eurozone, providing direct and seamless access to the vast EU single market of over 450 million consumers. Its strategic geographical location serves as a gateway to Europe, Latin America, and North Africa, offering unique opportunities for international trade and expansion. Spain has a large domestic market with strong purchasing power, providing a substantial consumer base for a wide range of products and services. The country boasts a well-developed and modern infrastructure, including high-speed rail, extensive road networks, major international airports, and world-class seaports. Spain offers a highly skilled and educated workforce, with a strong talent pool in engineering, IT, and tourism, often at competitive labor costs compared to other Western European countries. The government provides various investment incentives, including tax benefits, subsidies for R&D, and support for job creation, especially in specific regions or sectors. Spain has a vibrant culture, high quality of life, and diverse tourist attractions, which can be beneficial for attracting and retaining international talent. The legal framework is robust and aligned with EU directives, ensuring transparency and investor protection.

Business Opportunities for Indians in Spain-

There are excellent and expanding business opportunities in Spain for Indian investors looking to establish or grow their presence in a major European market. Spain actively welcomes foreign businesses and offers a diverse and growing economy. Indian investors can explore significant business opportunities in sectors such as IT and digital services, pharmaceuticals, renewable energy, automotive components, and food processing. These sectors are experiencing considerable growth and offer substantial potential for collaboration, investment, and market entry.

Imports & Exports-

Many goods are imported and exported from Spain, playing a crucial role in its economy. Thorough research and development are vital to identify suitable products for import or export and to assess market revenue potential.

Major items which are exported from Spain to India-

Machinery and mechanical appliances Mineral fuels, oils, distillation products Electrical machinery and equipment Organic chemicals Pharmaceutical products Iron and steel Vehicles (other than railway, tramway) Olive oil

Major items which are imported in Spain from India-

Textile and apparel products Organic chemicals Pharmaceutical products Machinery and mechanical appliances Iron and steel products Agricultural products (e.g., coffee, tea, spices) Gems and jewelry

Manufacturing-

Indian companies can look into establishing manufacturing units in Spain, particularly for automotive components, renewable energy equipment, pharmaceuticals, and specialized machinery, leveraging Spain’s industrial base and access to the EU market.

Information Technology (IT) and Digital Services-

Given Spain’s focus on digital transformation and its growing tech ecosystem, Indian IT and software companies can find significant opportunities for establishing development centers, offering IT outsourcing services, or collaborating on digital solutions across various industries, including tourism and finance.

Renewable Energy-

With Spain’s strong commitment and vast potential in renewable energy, Indian companies specializing in solar, wind, and green hydrogen technologies can explore investment opportunities in project development, manufacturing, and technology solutions.

Pharmaceuticals and Life Sciences-

The growing life sciences sector in Spain offers opportunities for Indian pharmaceutical companies in R&D collaboration, drug manufacturing, and market entry for their products.

Major Indian companies which are currently working in Spain-

Tata Consultancy Services (TCS) (IT Services) Wipro (IT Services) Infosys (IT Services) Tech Mahindra (IT Services) Mahindra & Mahindra (automotive and tractor presence) Apollo Tyres (presence in Europe, potential for operations/sales in Spain) Various Indian pharmaceutical companies (through distribution or sales operations).

GDP = $1.73 trillion (2025 est.) GDP Growth = 2.0% (2025 est.) Ease of doing business rank = Not applicable (World Bank EoDB index discontinued; generally ranks well in European competitiveness reports) GDP per Capita = $36,250 (2025 est.)

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