- 1Spain: An attractive country for investment
- 2Setting up a business in Spain
- 3 Tax System
- 4 Investment aid and incentives in Spain
- 5 Labor and social security regulations
- 6 Intellectual property law
- 7Legal framework and tax implications of e-commerce in Spain
- AI Annex I Company and Commercial Law
- AIIAnnex II The Spanish financial system
- AIIIAnnex IIIAccounting and audit issues
- State incentives for training and employment
- State incentives for specific industries
- Incentives for investments in certain regions
- Aid for innovative SMEs
- Preferred financing of the Official Credit Institute (Instituto de Crédito Oficial or ICO)
- Internationalization incentives
- EU aid and incentives
With the aim of promoting investment, employment, competitiveness and economic growth, the Spanish State and all other public authorities have been developing and consolidating an extensive and complete system of aid instruments and incentives especially targeted at boosting indefinite-term employment, regional investment and at research, development and technological innovation (R&D&I).
Furthermore, since Spain is an EU Member State, potential investors are able to access European aid programs, which provide further incentives for investing in Spain.
These investment aid measures can be classified as follows:
- State incentives for training and employment.
- State incentives for specific industrial sectors.
- Incentives for investments in certain regions.
- State incentives for innovative SMEs.
- Preferred financing from the Official Credit Institute (Instituto de Crédito Oficial or ICO).
- Incentives for internationalization.
- EU aid.
Most of the aid that can be obtained from the various agencies depends largely on the specific characteristics of each investment project (i.e. the better the prospects of the project, the more possibilities there are of obtaining financing and aid).
Furthermore, the ICEX-Invest in Spain offers a search engine for public aid and subsidies granted in Spain. Using this tool, companies can gain easy access to updated information regarding the grants available for their investment projects. Also, this same tool now includes an automatic alert system for aid and subsidies tailor-made to each user.
In any case, this Chapter should be read bearing in mind the current health emergency caused by COVID-19. This emergency has given rise to the adoption of aid programs and additional incentives aimed precisely at mitigating the adverse effects caused in the various economic sectors of our country.
In this regard, and as will be explained in detail in section 8 of this Chapter, it is particularly relevant the effect that the approval and implementation of the European Recovery Instrument Next Generation” Program, together with the new reinforced Multiannual Financial Framework for the period 2021-2027, as part of the measures approved by the European Council of 21 July 2020 to boost the convergence, resilience and transformation of the economy of the Member States by accelerating the two-folded green and digital transition, will have on the allocation of a large number of the lines and programs described herein.
Bearing the foregoing in mind, and notwithstanding the tax incentives analyzed in other chapters (essentially investment tax credits -- for further information go to Chapter 3, section 2 --), the main State incentives for investors are described on the following pages.