Spain your partner in europe

Spain: your partner in Europe
September 2015
Business Opportunities
Global Market Access from an International Economy
Investment Framework
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1. Spain: a highly internationalized economy
2. Global Market Access
3. Macroeconomic Situation and Structural Reforms
4. Business Climate
Infrastructure and Technology
Incentives and taxes
Human capital: Productivity, Skilled Labour Force and Competitive Costs
Quality of life: Expat setting up
5. Business Opportunities
6. ICEX / Invest in Spain
INDEX
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Spain is the world’s 13th-largest economy and the 5th-largest economy in the EU:
GDP worth 1.4 trillion USD
GDP comparison of major economic regions,
USD billions
3
Germany: 3,860*
UK: 2,945
Spain:
1,407
France:
2,847
Italy:
2,148
EU28: 18,495
USA:
17,419
Mexico:
1,283
Canada:
1,789
NAFTA:20,491
China*:
10,380
Brazil:
2,353
Russia*:
1,857
India:
2,050
BRICs: 16,640
NIEs:
3,807
ASEAN-5:
2,060
Asia: 13,435
Japan:
4,616
Australia:
1,444
Source: IMF, 2015. Data Referred to 2014
* Estimated Data

Spain is the 9th-largest exporter of commercial services worldwide (has gone up one
position in the ranking), 4th in the EU, and the 18th-ranked exporter of merchandise
trade (up from position 20 last year).
Source: World Trade Organization (WTO), 2015.
Commercial Services Exports
USD Millions
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Merchandise Trade Exports
USD Millions
2013 2013/2012%
1 China 2,209,007 7.8%
2 United States 1,579,593 2.2%
3 Germany 1,452,711 3.4%
4 Japan 715,097 -10.5%
5 Netherlands 671,863 2.7%
6 France 579,687 1.9%
7 Republic of Korea 559,632 2.1%
8 United Kingdom 541,594 14.6%
9 Hong Kong 535,548 8.7%
10 Russian Federation 523,294 -1.1%
…. … …
18 Spain 316,534 7.2%
World 18,816,000 2.2%
2013 2013/2012%
1 United States 662,041 5.63%
2 United Kingdom 292,728 5.04%
3 Germany 286,204 1.51%
4 France 236,269 7.83%
5 China 204,718 9.69%
6 India 150,926 7.50%
8 Japan 145,356 11.89%
9 Spain 145,274 2.01%
10 Hong Kong 133,316 6.12%
World 4,644,380 5.63%

Spain, strong and sustainable external sector performance
Source: Eurostat, 2015.
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The weight of exports in GDP has increased from 21.9% (2009) to 32.6% (2014 Q2).
Spanish exports of goods and services related to GDP in 2013 were higher than in the United Kingdom,
Italy or France.
A competitive combination: technology, innovation, productivity and lower Unit Labour Costs have lead to a
competitiveness-based expansion of exports.
Germany; 50,7
26,5
23,9
27,4
30,8
32,7 Spain; 34,1
France; 27,2
Italy; 30,4
UK; 31,4
US; 13,5
Japan; 16,2
0
10
20
30
40
50
60
2008 2009 2010 2011 2012 2013
Exports of goods and services in % of GDP
Germany Spain France Italy UK US Japan

While the world export market share of Germany, Japan, Italy, or France has declined
during the last decade due to competition from emerging countries, the Spanish share of
world merchandise exports has remained stable.
Spain increased its quota in international trade of goods in 2013, to 1.68% (1.60 in 2012)
In 2013 Spain has kept its 3.1% share in the world trade of services
Country share in world export of merchandise trade,
2006-2013
6

Spanish and foreign companies established in Spain focus on EU markets, but they are
increasing their exports and business towards Latin America, USA, Asia, Russia, Africa
and the Middle East using Spain as a platform for Global Business.
In 2013, our exports to non-EU countries maintained the upward trend of the last few
years (+ 37.4% in 2013):
Exports to Africa went up by 8.4% (particularly to Algeria by 11.4% and South Africa
by 33.4%),
To Latin America by 8.6% (especially to Argentina, +36.3% and to Brazil, 28.9%)
To Asia by 10.3%, (of which 4.7% to China, 12.9% to Thailand and 10.7% to
Taiwan)
The EU is still our main business partner, but the slow growth in Europe has dented
exports in 2014.
During Jan-Oct 2014 exports have grown by 2.1% y-o-y as compared to 6.2%
growth during Jan-Oct 2013.
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Tourism:
Spain is the 2nd country worldwide in revenues and the 1st in Europe.
Spain ranks 3rd in tourist arrivals worldwide and 2nd in Europe.
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INTERNATIONAL TOURIST ARRIVALS
GENERATED REVENUE
(INTERNATIONAL TOURISM)
Source: WTO Tourism Highlights, 2014
2013/2012
(%)
1 USA 139.6 10.6%
2 Spain 60.4 7.4%
3 France 56.1 4.8%
4 China 51.7 3.3%
5 Macao 51.6 18.1%
6 Italy 43.9 6.6%
7 Thailand 42.1 24.4%
8 Germany 41.2 8.1%
9 United Kingdom 40.6 12.1%
10 Hong Kong 38.9 17.7%
World 1,159 5.3%
Country
2013
(Bill USD)
2013/2012
(%)
1 France .. ..
2 USA 69.8 4.7%
3 Spain 60.7 5.6%
4 China 55.7 -3.5%
5 Italy 47.7 2.9%
6 Turkey 37.8 5.9%
7 Germany 31.5 3.7%
8 United Kingdom 31.2 6.4%
9 Russia 28.4 10.2%
10 Thailand 26.5 18.8%
TOTAL 1,087 5.0%
2013
(Mill. People)
Country
Source: WTO Tourism Highlights, 2014
Spain received more than 65 million tourists in 2014
(Source: IET/ Tourspain)

Spain is the 9TH largest economy in terms of accumulated inward and 11TH in outward
FDI stock in the world.
Inward FDI stock
(USD Millions)
Outward FDI stock
(USD Millions)
Source: UNCTAD, WIR, 2015. Source: UNCTAD, WIR, 2015.
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Economy
Inward FDI stock
2014
Mill USD Share
1 United States 5,409,884 20.8%
2 United Kingdom 1,662,858 6.4%
3 Hong Kong, China 1,549,849 6.0%
4 China 1,085,293 4.2%
5 Singapore 912,355 3.5%
6 Brazil 754,769 2.9%
7 Germany 743,512 2.9%
8 France 729,147 2.8%
9 Spain 721,879 2.8%
10 Switzerland 681,849 2.6%
12 Canada 631,316 2.4%
13 Australia 564,608 2.2%
14 Belgium 525,612 2.0%
15 Russian Federation 378,543 1.5%
16 Italy 373,738 1.4%
17 Ireland 369,168 1.4%
18 Mexico 337,974 1.3%
19 Sweden 321,103 1.2%
20 indonesia 253,082 1.0%
World 26,038,824
Economy
Outward FDI stock
2014
Mill USD Share
1 United States 6,318,640 24.4%
2 United Kingdom 1,584,147 6.1%
3 Germany 1,583,279 6.1%
4 Hong Kong 1,459,947 5.6%
5 France 1,279,089 4.9%
6 Japan 1,193,137 4.6%
7 Switzerland 1,130,615 4.4%
9 China 729,585 2.8%
10 Canada 714,555 2.8%
11 Spain 673,989 2.6%
12 Ireland 628,026 2.4%
13 Singapore 576,396 2.2%
14 Italy 548,416 2.1%
15 Belgium 450,178 1.7%
16 Australia 443,519 1.7%
17 Russian F. 431,865 1.7%
18 Sweden 379,528 1.5%
19 Brazil 316,339 1.2%
20 Taiwan 258,829 1.0%
World 25,874,757

US, Italian, French, German and UK
Companies are the largest investors in
Spain.
Increasing interest from companies
in Asia (especially from China, India,
Korea and Japan) Latin America
(especially from Mexico, Brazil and
Colombia) and from the Middle East
Countries.
SPAIN Inward FDI stock by country
(EUR Millions)
Source: Registro de Inversiones, 2015. Data Referred to 2013
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COUNTRY STOCK 2013 % total
1 USA 61,085 17.6%
2 ITALY 37,770 10.9%
3 FRANCE 34,192 9.8%
4 GERMANY 32,985 9.5%
5 UK 30,801 8.9%
6 MEXICO 22,383 6.4%
7 LUXEMBOURG 21,829 6.3%
8 NETHERLANDS 13,580 3.9%
9 BRAZIL 11,899 3.4%
10 SWITZERLAND 11,085 3.2%
11 CHINA 7,067 2.0%
12 UAE 5,627 1.6%
13 SWEDEN 4,804 1.4%
14 COLOMBIA 4,111 1.2%
15 CANADA 3,846 1.1%
16 JAPON 3,573 1.0%
17 BELGIUM 2,792 0.8%
18 PORTUGAL 2,700 0.8%
19 URUGUAY 2,405 0.7%
20 ISRAEL 1,230 0.3%
TOTAL 347,618

Spanish companies are among leading companies in the world:
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3 out of every 5 flights worldwide are controlled using
Spanish air navigation systems.
Telefonica is one of the largest telecommunications
companies in the world (in terms of market capitalization
and number of customers).
Santander Bank is the first bank in the Eurozone and one
of the first in the world (stock market capitalization: more
than 90 billion euros) and BBVA now operates in 40
countries.
IBERDROLA is the 4th-largest utility company in the
world (in terms of market capitalization).
The Spanish infrastructure sector is a world leader in
foreign markets. Thirteen Spanish companies totalled 80
billion dollars in revenue.
The Al Shoula Group, a Spanish-Saudi consortium, is to
run the high-speed train between La Mecca – Medina.
The Panama Canal expansion project has been
awarded to a Spanish-led consortium.
The Spanish company Abengoa has placed the largest
solar power plant in the world in service in Arizona.

Spain is the 9th-most open country to Foreign Investment according to OECD’s FDI
Restrictiveness Index
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CLOSE OPEN

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Over 13,050 foreign companies are currently located in Spain across all
economic sectors
70 of the FORBES Top 100 companies have branches in Spain

Domestic market of over 46 million consumers: Spain has a GDP per capita (PPP)
above the EU-27 average.
2. Market Access
Source: IMF 2014
Spain grants free access to the world´s
largest market, the European Union: more
than 500 million consumers
Advantages of operating in the EU:
Intra-European duty-free market.
Free movement of goods and
services, capital and persons.
Single currency: EURO.
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Country
GDP per capita
RK USD
1 United States 5 53,101
2 China 92 9,844
3 Japan 21 36,899
4 Germany 14 40,007
5 France 22 35,784
6 United Kingdom 20 37,307
7 Brazil 78 12,221
8 Russia 57 17,884
9 Italy 30 30,289
10 India 131 4,077
11 Canada 8 43,472
12 Australia 9 43,073
13 Spain 32 29,851
14 Mexico 65 15,563
15 Korea 26 33,189
Capacity for consumption of goods

The best European platform for doing business with Latin America:
2. Market Access
17 Agreements to Avoid Double Taxation
in Central and South America: Argentina,
Bolivia, Brazil, Barbados, Chile,
Colombia, Costa Rica, Cuba, Dominican Republic,
ElSalvador, Ecuador, Mexico, Panama,
Jamaica, Trinidad & Tobago, Uruguay, Venezuela.
20 Agreements for Protection and
Promotion of Reciprocal Investments
Bolivia, Colombia, Costa Rica, Cuba, Chile,
Ecuador, El Salvador, Guatemala, Honduras,
Jamaica, Mexico, Nicaragua, Panama, Paraguay,
Peru, Dominican Republic, Trinidad & Tobago,
Uruguay, Venezuela and Argentina.
Excellent communications and
infrastructure: Madrid concentrates around
35% of total air traffic between Europe &
Latin America.
Agreements for
Protection and
Promotion of
Reciprocal Investments
Agreements to
Avoid Double
Taxation
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2. Market Access
1. Common historical, cultural and linguistic
roots. Institutional network relationships.
2. Strong economic and business ties:
Spanish companies have invested in strategic
sectors in Latin America (banking, utilities,
communications and transport, building
industry, airport management, etc.)
3. Good communications: Spain is a major
connecting hub for airlines traveling between
America, Europe and Middle East.
4. Multinational companies are increasingly
choosing Spain for their Latin American
headquarters.
5. Spain has become the European HQ for
Latin American multinational companies.
6. In the USA there are more than 50 million
people working in Spanish.
Why is Spain a perfect hub for doing business in Latin America?
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Spain is the world´s 2nd-largest investor in Latin America among European countries.
Source: ECLAC, 2014.
Latin America and the Caribbean:
origin of FDI
2. Market Access
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USA
24%
Netherlands
11%
Canada
6%
Spain
5%
Japan
4%
Latin
America
14%
Others
36%
Spain: Top- Outward FDI Stock
by country EUR Millions
Source: Spanish Ministry of Economy and Competitiveness, 2014.
2011 2012
% TOTAL
2012
1 UK 51,882 59,342 14%
2 BRAZIL 60,157 56,692 13%
3 USA 52,534 53,884 12%
4 NETHERLANDS 30,764 36,496 8%
5 MEXICO 26,966 29,202 7%
6 PORTUGAL 22,159 21,705 5%
7 FRANCE 15,199 15,789 4%
8 LUXEMBOURG 26,406 14,223 3%
9 SWITZERLAND 15,105 13,615 3%
10 ARGENTINA 15,183 12,976 3%
11 CHILE 12,192 12,405 3%
12 GERMANY 21,011 10,160 2%
13 VENEZUELA 4,960 9,181 2%
14 COLOMBIA 6,231 6,654 2%
15 HUNGARY 2,642 6,331 1%
16 PERU 4,228 5,716 1%
17 AUSTRALIA 5,317 5,462 1%
18 CHINA 4,496 5,172 1%
19 ITALY 4,807 5,054 1%
20 POLAND 3,848 4,792 1%
TOTAL 447,291 438,359 100%

Many Spanish companies have a strategic position in key sectors in Latin America
(ICT, energy, finance, infrastructures, etc.)
2. Market Access
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Some multinational companies set up in Spain to manage their operations in Latin
America or the EU.
In addition, Spain has become the European Headquarters of Latin-American
multinational companies doing business in Europe and MENA countries.
• LATIBEX: the single international market for Latin American securities
regulated by the Spanish Stock Market.
2. Market Access
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Spain is a suitable platform within the European market for doing business with
North- African, Mediterranean, and Middle East countries:
2. Market Access
• 19 Agreements to Avoid Double Taxation: Albania, Algeria, Bosnia and Herzegovina Croatia,
Cyprus, Egypt, France, Greece, Israel, Italy, Kuwait, Malta, Morocco, Montenegro, Saudi Arabia,
Slovenia, Tunisia, Turkey, United Arab Emirates.
• 15 Agreements for Protection And Promotion of Reciprocal Investments: Albania, Algeria,
BosniaHerzegovina, Croatia, Egypt, Jordan, Kuwait, Lebanon, Libya, Montenegro, Morocco,
Slovenia, Syria, Tunisia, Turkey.
• Euro-Mediterranean
Association Agreements with
Egypt, Israel, Jordan, Lebanon,
Morocco, Tunisia and Algeria for
the gradual liberalization of
trade in the Mediterranean area.
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Euro-Mediterranean Association Agreements
Agreements for Protection and
Promotion of Reciprocal
Investments
Agreements to Avoid Double
Taxation

Key Role of the Spanish Canary Islands Special Zone (ZEC) as a commercial and
logistic hub with Africa
Geo-strategical location: On the Southernmost
border of the European Union (EU)
Strong historical and commercial ties with Africa
and America
Authorized by the European Commission in
January 2000
Tax benefits for ZEC entities.
Europe’s most beneficial tax regime (4% corporate tax rate).
Excellent communications and services infrastructure.
Interesting tri-continental logistic platform to Africa, Latin America
and Europe
www.zec.org
2. Market Access
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2. Market Access
Source: Global Location Trends. IBM Global Business Services. 2012. (Projects of less than 10 jobs were not included
Top ranking destination cities according to investment projects
Global Location Trends. IBM Global Business Services 2012
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3. Macroeconomic situation and structural
reforms
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The Spanish economy is undergoing a significant adjustment and is in the process
of correcting accumulated imbalances
.
3. Economic policy and structural reforms
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Financial System Reform
Spanish economic policy: reform calendar
Source: The Kingdom of Spain’s Economic Policy Strategy and Funding Programme. Tesoro Público

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Competitive Labour Costs
Measures to foster growth,
competitiveness and entrepreneurship
Labour market reform
Law on visa and work permits and flexible
application to foreign investors
Public Sector Reform Fiscal consolidation at all levels of Administration
Provisioning system redressed and restructuring
process completed
Financial System Reform
Reforms for Competitiveness
Resident and Work Permits
Results of the structural reforms
Rectification of imbalances and recovery from
recession, with increased competitiveness and
sustained growth
First ResultsTransformation of Spain Growth
Model

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Public Sector Reform: Fiscal Consolidation at all levels of Administration
Strengthening the structural fiscal framework:
Constitutional Reform pioneered adoption of the Fiscal Compact.
Budgetary Stability Law provides for further fiscal discipline and far‐reaching monitoring and
enforcement tools.
Independent Fiscal Authority.
Measures to increase income and reduce expenditure at all levels, with the firm aim of achieving the deficit
goal agreed with the EU (Pension System Reform, Reform of the Public Administrations).
A Fiscal Reform to boost job creation and revitalize the economic growth. The Tax collection expected to
increase 5.4% y-o-y, roughly in-line with the observed increase in 2014 despite cuts in tax rates (Corporate
Income tax rate is reduced to an interim 28% in 2015 and the definitive 25% in 2016)
Source: Ministerio de
Hacienda y
Administraciones
Públicas

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Adjustment and recapitalization of the financial system
In the Spanish Financial System, Entities could be divided into two groups.
The core of the financial system is mainly composed of the largest and internationalized
Spanish Banks with an outstanding performance during the financial crisis.
The local saving banks – Cajas de Ahorros - has shown structural vulnerabilities and the highest
exposure to real estate. The Government has undertaken a restructuring process.
In the last two years the provisioning system has been redressed and the
restructuring process was completed at the end of 2013.
Transparent and independent evaluation of the IMF and external risk evaluation of the whole asset
portfolio. 70% of the Spanish financial sector is sound and does not require additional capital.
The clean-up of under-capitalized banks has required an injection of €41.3 bn of public funds (less 4%
of GDP).
Segregation of the troubled assets of banks that need public support for their recapitalization (volume
estimated at €50.781 mn.) and transfer to an asset management company (SAREB) with majority of
private capital (55%).
Increase in provisions and capital buffers on real-state exposure.
The total number of entities in the financial sector, excluding credit cooperatives and
foreign branches, has decreased from 50 in 2009 to 12 at the present time.
Spain is the country with the second-best score from the tests by the European Single
Supervisory System and the best score in terms of the asset quality assessment.
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Labour Market Reform:
Fostering Labour flexibility and productivity at company level.
Firm-level salary bargaining prevails over national, regional or sector collective agreements.
Collective dismissals without administrative authorization are allowed for firms posting falling profits
for three or more consecutive quarters and elimination of procedural wages.
Convergence and reduction of dismissal costs in line with EU(27) average.
Fair dismissal: severance pay of 20 days per year, up to 12 months
Unfair dismissal: severance pay of 33 days per year, up to 24 months. This means a reduction of
26.6% in the paying severance
Simplification and clarification of the regime for individual and collective dismissals due to economic
circumstances relate to sales, revenues trends.
Creation of a new permanent contract directed at SMEs
Incentives and tax relief for job creation: €500 exemption for employers’ contributions for
common contingencies to the Social Security when the worker is hired under a full-time, open-ended
contract. This exemption applies for two years.
Recent trends in the labour market
The labour market is adapting rapidly, spurred by recent legislative initiatives: more part‐time jobs
& lower percentage of employees with temporary contracts, as well as decelerating nominal and
real wages
Sharp reduction in Unit Labour Costs as a continuation of decreasing wages in some sectors and
sharp increase in labour productivity
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Measures to foster growth, competitiveness and entrepreneurship
Law of Guarantee of Market Unity: eliminates the fragmentation of the national market, and
enables a convergent nationwide product/service regulation across all regions
Reform of the public administration services which is still under way.
Liberalization of the retail sector. No restriction on commercial opening hours in areas of
commercial attractiveness; increase of the number of opening days.
Deregulation of professional services.
Plan on Fostering entrepreneurship and business environment: measures to support
entrepreneurs, SMEs and self‐employed workers.
Significant reduction of the red tape to start a business.
The authorization of visa and residence permits will be made quicker and easier on grounds of
economic interest
National Commission of Markets and Competition: incorporates all sector regulatory bodies and
the National Commission of Competition .
Education reform on Improving the quality and results of Education and improves Vocational
Training: Updating of qualifications, modernization of tools and gradual implementation of dual
training.
Law to De-index the Spanish Economy: Decoupling of the public administration service prices and
fees from the CPI (consumer prices index).
Strengthening of the Tourism Sector: A comprehensive National Tourism Plan (PNIT) for the period
2012-2016 has been approved.
Reform of the Electricity Sector
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New specific framework for qualified immigration and investors
THE PROCEDURES
10 days for visas and 20 days for authorizations
A single authorization for living and working in Spain
Valid for the whole of Spain
The family will be able to apply at the same time
GENERAL REQUIREMENTS
Not being in an illegal situation in Spain
Being 18 years old or older
Not having criminal records
Public or private health insurance in Spain
Enough economic resources.
VISA AND AUTHORIZATION CONCESSIONS FOR
Investors
Entrepreneurs
Highly qualified professionals
Scientists and researchers
Intra-corporate transferred employees
It is based on an agile and specialized system for visa and authorization concessions.
Freedom to live in Spain: Granted residence and work permits authorization
Source: http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/folletos/index.html

FIRST RESULTS
In 2014Q4 the Spanish economy grew by 0.7% confirming its accelerating trend. As a result, in 2014
GDP grew by 1.4%, above the Government’s estimate, and at the upper end of analysts’ projections
Current Account Deficit: from roughly -10% in 2007 to a current account surplus in 2014. The current
account has registered its second consecutive yearly surplus, +0.1 pp of GDP, supported by falling
oil prices and accelerating real goods exports.
The Aggregate Balance of the Capital Account and the Current Account in 2014 shows Spain’s net
lending capability vis-à vis the rest of the world of € 5.600 M in contrast with the borrowing needs of
5,834 million euros recorded in 2012.
Spanish goods exports grew by 2.5% year-on-year in 2014 to 240.03 billion euros, a new record for
annual export figures. In real terms the growth was even greater - at 3.5%. This positive result in
terms of exports exceeded the rate of growth posted by European exports (1.3%) and Eurozone
exports (1.8%), as well as those of such countries as Italy (2%), France (-0.2%) and the United
Kingdom (-11.1%).
The ongoing geographic diversification of the Spanish exports pushes the increase of sales abroad:
In 2014, our exports to non-EU countries grew for the fifth year in a row (0.2% year-on-year in 2014)
despite the economic weakening in Latin America and some African countries. As a result, exports
to non-EU countries have increased their share in Spanish exports from 27.5% of the total in 2005 to
36.6% in 2014.
Foreign productive investment amounted to 17.63 billion euros in 2014, 9.8% more than in 2013
(16.05 billion), according to data from the Foreign Investment Register of the Ministry of Economy
Affairs and Competitiveness.
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34
4
The falling Unit Labour Costs in Spain are helping to gain competitiveness and to lower export
prices. Nominal unit labour costs have declined by 6.9% since the peak in 2009, as a result of
wage moderation and especially of increases in productivity (+2.3% in 2013). According to
Eurostat, in the first three quarters of 2014, Spanish Unit Labour Costs have declined by 1.2%, by
0.1% and by 0.4%, while they have rose by 0.7%, by 1.0% and by 1.1% in the euro area.
The rising productivity is explained not only by labour shedding, but also because of gains in Total
Factor Productivity. In this sense, the European Commission (source AMECO) shows that TFP
increased in Spain in 2014 (+0.77%), a higher expansion than that of the EU-28 (0.40% in 2014),
Germany (0.66 %), France (-0.21%) or Italy (-0.40%)
Labour Force Survey:
In the last 12 months, employment has increased by 433,900 persons.
For every three new jobs created in the European Union, two of these are created in Spain.
The Construction Sector has accelerated its adjustment:
Real estate prices have fallen on average by approx 30 % in nominal terms since the peak in 2008.
Significantly More Houses Sold Than Started Or Finished: gradual reduction of unsold stock.
The gross value added generated by the construction sector is expanding since 2014Q2, for the first time
since 2008
The differential of the 10-year bond compared with the German bond has gone from over 600
basis points in August 2012 to around 100 basis points.
World Bank’s Ease of Doing Business 2014, Spain ranks 33rd (from 52nd in 2013) of a total of 185
countries.

For more information about macroeconomic
situation and economic policy, please log on
to:
www.tesoro.es
and
www.thespanisheconomy.com
35

4. Business climate
o Infrastructure and Technology
o Incentives and taxes
o Human capital: Productivity, Skilled
Labour Force and Competitive Costs
o Quality of life: Expat setting up
36

4. Business climate
o Infrastructure and Technology
37

38
250 airlines have scheduled flights, operating out of the country’s 47 airports, with Madrid
and Barcelona the main hubs.
Airport Network
Source: Eurostat: Last data available 2013
4. Business climate: Infrastructure & Technology
Country Passengers on board
United Kingdom 210,784,792
Germany 181,879,734
Spain 158,072,126
France 138,872,882
Italy 116,332,421
Turkey 112,215,716
Netherlands 58,316,239
Switzerland 44,338,021
Norway 37,229,490
Greece 34,021,165
Sweden 31,654,684
Portugal 29,451,958
Denmark 27,575,531
Belgium 26,599,120
Austria 25,827,030
Ireland 24,644,846
Poland 23,298,404
Finland 16,606,783

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Source: International Union of Railways. Updated Sept 2014
Spain is the 3nd largest worldwide (1st in Europe) in High-Speed Network and the European leader with more
than 2500km in service, traveling at an average commercial speed of 222 km/h, higher than that of Japan
(218 km/h) and France (216 km/h). And a total railway network over 15,500 km.
According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indexes
of rail road infrastructure Quality in the world, and one of the best subway systems in major cities.
Railway Network
High-Speed Lines in the World (kilometres)
0 2000 4000 6000 8000 10000 12000
China
Japan
Spain
France
Germany
Italy
Turkey
South Korea
USA
Taiwan
Belgium
Netherlands
UK
Switzerland
Source: ADIF
Railway Network

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Spain has the largest EU highway network with 14,701 km. According to The Global
Competitiveness Report (World Economic Forum), Spain has one of the best indexes of
Quality of roads in the world.
Road Network
Length of Motorways (kilometres 2012)
Source: Eurostat 2014. Last data available.
0 5000 10000 15000 20000
Estonia
Cyprus
Lithuania
Romania
Norway
Slovakia
Bulgaria
Slovenia
Finland
Poland
Croatia
Austria
Portugal
United Kingdom
Germany
Spain

41
4. Business climate: Infrastructure
Main Port Facilities
Excellent maritime connections, with 46 state-own ports on both the Atlantic and the
Mediterranean coasts, with 3 ports among the Top-20 container ports in Europe (Algeciras,
Valencia and Barcelona). According to The Global Competitiveness Report (World Economic
Forum), Spain has one of the best indexes of Quality of port infrastructures in the world.
Source: European Sea Ports Organization. ESPO & Puerto del Estado, 2015.
Top - 20 European Ports by Throughput
2014 %14/13
# Port | Country Mill € / Tonnes
1 Rotterdam (NL) 445,0 1,0%
2 Antwerp (NL) 199,0 4,3%
3 Hamburg (DE) 145,7 4,7%
4 Amsterdam (NL) 97,4 2,5%
5 Novorosiysk (RU) 121,6 8,1%
6 Algeciras (ES) 95,0 4,5%
7 Marseille (FR) 78,5 -1,9%
8 BremerHaven (DE) 78,2 -0,8%
9 Le Havre (FR) 67,6 0,6%
10 Valencia (ES) 67,0 3,1%
11 Duisburg (DE) 65,0 4,8%
12 Saint Petersburg (RU) 61,1 6,1%
13 Trieste (IT) 56,6 1,1%
14 Constantza (RO) 55,6 0,7%
15 Genoa (IT) 52,0 5,1%
16 Ghant (BE) 47,1 -2,3%
17 Dunkerke (FR) 47,0 7,8%
18 Barcelona (ES) 46,4 9,4%
19 Calais (FR) 43,3 5,1%
20 London (UK) 43,2 0,0%
21 Zeebrugge (BE) 43,0 0,5%

42
More than 80 Technology Parks
The main sectors of the
companies located in the Parks
Source: Association of Science and Technology Parks of Spain 2013
23%
15%
6%
5%
5%4%4%
4%
3%2%
1%
28%
ICT Engineering/Consultancy
Medicine/Health Industrial
Agriculture/Biotechnology Energy/Environment
Technology centres/R&D Training/Human Resources
Aeronautics/Automotive Electronics
Business Centres Others
2 2
2
Madri
d
Seville
Huelva
1
Córdoba
2
Cádiz
2 1
Jaén 1
Almería
1Granada
1 1
Murcia
2
Alicante2
Barcelona
7 6
Cantabria
2
Valencia2
Castellón1
León, Burgos
and Valladolid
1
Valladolid1
Teruel
1
Lérida
1
Gerona
1
Palma de Mallorca
1
Asturias 2
Gran Canary
1
Álava
1
Málaga1 2
1
Fuerteventura
1
Tenerife
1
Guipúzcoa
2 1
Biscay
1
Huesca
1
Saragoss
a
1
Pontevedra
1
Badajoz
1
Orense
1
La Rioja
1
Salamanca
1 Guadalajara
1
Parks at full performance
Parks in development
66 parks in the Association of Science and
Technology Parks of Spain, hosting 6286
companies

43Source: Eurostat – Community Survey on ICT usage in enterprises, 2011 (Data 2010)
0
10
20
30
40
50
60
70
80
90
100
ES
MT
FR
UK
FN
SE
GE
BG
NL
IT
PT
EU-27
Broadband penetration in Business
(% of companies with broadband access)
0
20
40
60
80
100
Computer
Local Area Network
Wireless LAN
Broadband
Mobile Phones
Other Technologies
E-Mail
Internet
Total 10 to 49 50 to 249 250 or more
Source: ONTSI, based on INE 2011
ICT Infrastructures in Spanish
Businesses
Whatever the size of the company, Spain leads the field in technologically enabled
companies
Technology Adoption by Companies
43

44
24%
18%
29%
25%
17%
21%
11%
18%
20%
13%
16%
31%
17% 17%
21%
37%
28%
31%
13%
36%
20% 19%
28% 28% 28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
2.500.000
5.000.000
7.500.000
10.000.000
12.500.000
15.000.000
17.500.000
20.000.000
22.500.000
25.000.000
MT CY LU EE LV SI SK LT IE EL HU FI CZ PT AT DK BE SE PL NL ES IT FR UK DE
Lines/100inhabitants
BroadbandLines
Broadband Lines and Penetration Rate in
the EU27, lines/100 inhabitants
Source: XIV Implementation Report, European Commission, 2010
Broadband: European Comparison
44

4. Business climate
o Incentives and taxes
45

46
4. Business climate: Incentives & taxes
46
There are other regional and local incentives available in all Autonomous Communities
Main incentives for productive investment
European Union Incentives Scheme for Large Companies in Spain
Grants from Ministry of Finance and Public Administration
Additional Increase in Incentives from 10
to 20% for SMEs

Spain has got many Institutions that promote incentives in different calls along the year
R&D:
• The Centre for Industrial Technological Development (CDTI) has got a wide range of grants and loans at
competitive low interest rate for technological projects.
• The State Secretariat for Innovation in the Ministry of Economy and Competitiveness (MINECO) also offers
support with grants and loans for technological projects developed by companies and public bodies
• INVEST IN SPAIN/ICEX has developed a programme for supporting foreign companies up to €200,000 for
investments with a high degree of R&D in competitive tenders
• The National Innovation Company (ENISA) finances SMEs up to €1.5 million with participative loans at a
very competitive interest rate and where no-guarantee is required.
• The Public organization RED.ES promotes the IT activities of technological companies and start-ups financing
investments in infrastructures, equipments and so on.
Investments:
• The Official Credit Institute (ICO) supports the creation/investment carried out by companies and
entrepreneurs with loans/ leasing at a low rate
• The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and
Competitiveness (MINECO) support investments in equipment and infrastructures with grants and loans for
large and SMEs companies
• The Institute for Energy Diversification and Saving (IDAE) participates directly in projects with loans at a
low interest rate
Human Resources:
•The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and
Competitiveness (MINECO) support investments in human resources, training and hiring personnel with grants
and loans
47

Taxes: fiscal incentives for R&D
1. Favorable fiscal system for foreign investors and R+D activities: The 2nd most
favorable fiscal incentives for R&D among OECD countries.
2. In addition, the Spanish CIT law introduced a patent box type of incentive. Under this
regime 60% of net income arising from the letting of the right to use certain qualifying
intellectual property (IP) rights are tax-exempt.
Note: Tax subsidies are calculated as 1 minus the B index. For example, in Spain, 1 unit of R&D expenditure by large firms results in 0.349 unit of tax relief.
Source: “Science, Technology and Industry, Outlook”. OCDE, 2012.
48
-0,1
0,0
0,1
0,2
0,3
0,4
0,5
Large firms SMEs

Incentives for hiring people
Source: Ministry of Employment and Social Security
49
Permanent Contract Incentives: Reduction in the employer's social security
contribution
Company Size Monthly Amount (€) Term
New contract (up to 31/08/2016) All Exemption for common contingences: 500€ 2 years
National Youth Guarantee System All 300 € 6 months
Training Contracts Incentives: Reduction in the employer's social security
contribution
Company Size Annual Amount (€) Term
New contract
Employee<30 years
Less than 250
employees
100% Throughout
the term of the
contract
More than 250
employees
75%
Training activities All Depends on the type of the training: Maximum: 4,160€ 3 years
Conversion of Training, Apprenticeships
Contracts into Permanent Contracts
All
1,800 € yearly for women
3 years
1,500 € yearly for men
Partial-Time contracts linked with training
activities
Less than 250
employees
100% for common contigences
1 year + 1
year plusMore than 250
employees
75% for common contigences
Hiring Incentives:Reduction in the employer's social security contribution
Company Size Annual Amount (€) Term
Research staff All 40% for common contingences
Throughout
the term of the
contract
"First young job" contract
All
700 €/yearly for women 500
€/yearly for men
3 years
Employee<30 years
Apprenticeship contracts for first jobs
All
100% for common contingences when the companies
hire beneficiaries of the National Youth Guarantee
System
Throughout
the term of the
contractEmployee<30 years
Companies with less than 50 workers
16>Employee<30
Employee>45 years
Less than 50
employees
3 years
hiring unemployed Average of 1,200 €
Average of 1,400 €
Companies with up to 9 workers hiring
unemployed
Employee<30 yearsUp to 9 employees 100% for common contigences 1 year
Source: ICEX-Invest in Spain and Ministry of Employment and Social Security

Taxes: Moderate tax burden
The comparative analysis shows that Spain is a country with relatively moderate
ratio between Tax Revenues (Including Social Security Contributions ) and GDP
(32.5% GDP)
Countries UE. Tax Revenues (Including Social Security Contributions ) as a percentage of GDP
Source: Eurostat 2012
0,0
10,0
20,0
30,0
40,0
50,0
60,0
50

Taxes: moderate tax burden
1. A favourable tax rate on corporate income (28% for tax year 2015, and to 25% in 2016).
2. Reduced corporate tax rate (15%) for companies established on or after January 1,
2013. The reduced rate will be applicable for the first two years that the company is
generating profit.
3. An attractive allowance and deduction system in corporate tax (20.1% effective rate).
4. Participation Exemption system: dividends or profit participations from business
activities carried on abroad through subsidiaries or branches and the gains obtained
from the transfer of these securities are tax exempt in Spain if the Spanish company
holds a participation of at least 5% in the non resident company.
5. Favourable tax incentive for foreign workers: fixed rate of 24% (up to maximum of
600,000 €).
6. Spain has tax treaties with 88 countries. Under these treaties, residents in foreign
countries are taxed at a reduced rate, or are exempt from Spanish taxes on certain
items of income they receive from sources within Spain. These reduced rates and
exemptions vary among countries and specific items of income.
Source: Paying taxes 2013 (PwC & World Bank)
51

Taxes: ETVEs
1. Foreign Securities Holding Companies (in Spanish, ETVE) is a Special Tax Regime
applicable to Holding companies.
a) No taxation on paid-in dividends.
b) No taxation on paid-in capital gains.
c) No taxation on paid-out dividends/gains.
d) Stable and reliable regime.
e) Wide tax treaty network (88 treaties to avoid double taxation).
2. The attractiveness of ETVEs goes beyond the pure Tax Holding Regime. The ETVE
regime is an opportunity for international investors to channel their outbound
investments (in Europe, LATAM and other countries) through Spanish HoldCos.
52
Main Investors in Spanish ETVEs
Source: Ministry of Economy and Competitiveness , 2015. Data Referred to stock 2012
0
5
10
15
20
Billions

4. Business climate
o Human capital: Productivity, Skilled
Labour Force and Competitive Costs.
o Decreasing Unit Labour Costs.
53

Labour Costs
Labour costs in Spain are below the EU-28 average
4. Business climate: Human Capital:
productivity and skilled labour cost
54
43.0 41.2 39.8
35.6 35.0
32.5 31.7
31.7 31.3
28.0
27.6
23.7
21.1
20.9
15.9 14.3
14.1
12.6 11.5
10.4 9.3 8.8 7.8
7.4 6.5 6.2 4.7
3.7
3,8
00
05
10
15
20
25
30
35
40
45
Source: Destatis 2015 (Federal Statistical Office Germany)
Cost per hour Private Sector 2014
€/hour

Labour Costs
Unit Labour Costs more competitive than main European economies
55
85
90
95
100
105
110
2010 2011 2012 2013 2014
Source: Eurostat. September 2015
UNIT LABOUR COST EVOLUTION, 2010-2014
Index, 2010=100
Germany
Spain
France
Italy
United Kingdom

Compensation of employees
Spain has the lower employee compensation in comparison with main European economies
56
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Eurostat. September 2015. Data: Millions € (at current prices).
Note: Compensation of employees is defined as the total remuneration, in cash or in kind, payable by an employer to an
employee in return for work done by the latter.
EMPLOYEE COMPENSATION
Millions € (current prices)
Germany
Spain
France
Italy
United Kingdom

Salaries and wages in Spain
Average salaries by department for different sectors
57
0
10
20
30
40
50
60
70
80
90
Source: ODE Group
Note: Gross Salary. For companies between 150-500 employees
Average Salaries by Department for Different Sectors 2015
Thousand €
Executive Director/National/Chief Division Director
Manager/Head of Department
Officer/Programmer/Technician

Labour Productivity
Spanish Labour Productivity is better than EU-28 Labour Productivity
58
-4,0
-3,0
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Eurostat. September 2015. Data: % change on previous period
REAL LABOUR PRODUCTIVITY PER PERSON EMPLOYED
% change on previous period
EU 28
Spain

Social Security Costs
Employer contribution rate: : From 18.9% to 23.2% in case of permanent contract during
2 years.
Incentives for certain hiring and training contracts applied to reduce employer Social
Security Contributions.
If the monthly salary is higher than the maximum contribution base, the Social Security
rate applies to this maximum contribution base, where the effective rate is lower.
Source: Ministry of Employment and Social Security
59
176.76 €
18.9%-23.2%
350.08 €
100 €
200 €
300 €
400 €
<1,056.90 € 1,056.91 € 3,605.99 € >3,606 €
ContributiontoS.Security
Monthly Salary
Group 1 Employer S. Security Contribution
for permanent contract during 2 years

Employer’s Social Security contributions before and after Royal Legislative Decree 3/2014
60
If a company hires a worker with a salary of 20,000€, after RD 1/2015, the total employer
contribution to Social Security is 4,764€ per year. That means a reduction of 23% in
comparison with the same employment contract before RD 1/2015 (6,180€).
Total Employers' Contribution to Social Security
Total Employers' Contribution to Social Security with 500€
Exemption
Group 1 Group 1
Annual (€) Monthly (€) Annual (€) Monthly (€)
Salary 20,000.00 1,666.67 Salary 20,000.00 1,166.67
General Contingencies 4,720.00 393.33 General Contingencies 3,304.00 275.33
Unemployment 1,100.00 91.67 Unemployment 1,100.00 91.67
Accidents 200.00 16.67 Accidents 200.00 16.67
Salary Guarantee Fund 40.00 3.33 Salary Guarantee Fund 40.00 3.33
Professional Training 120.00 10.00 Professional Training 120.00 10.00
Total Employer's
Contribution to S.S. 6,180.00 515.00
Total Employer's Contribution
to S.S. 4,764.00 397.00
Total Cost 26,180.00 2,181.67 Total Cost 24,764.00 2,063.67
% 23.61 % 19.24
Source: Ministry of Employment and Social Security Source: Ministry of Employment and Social Security

Business Schools
3 Spanish Business Schools are in Top-10 in the 2014 Financial Times ranking of
European business schools
61
European Business School ranking 2014
2014 Ranking
3 year average
rank
School name Country
1 2 London Business School UK
2 2 HEC Paris France
3 2 IE Business School Spain
4 4 Esade Business School Spain
5 5 Insead France/Singapore
6 7 University of St Gallen Switzerland
7 6 Iese Business School Spain
8 9 SDA Bocconi Italy
9 8 IMD Switzerland
10 11 University of Oxford: Saïd UK
11 10
Rotterdam School of Management,
Erasmus University
Netherlands
12 11 ESCP Europe France/UK/Germany/Spain/Italy
13 16 Imperial College Business School UK
14 14 EMLyon Business School France
15 16 Essec Business School France
16 15 Vlerick Business School Belgium
17 20 Edhec Business School France
18 26 Mannheim Business School Germany
19 18 City University: Cass UK
19 21 Warwick Business School UK
Source: Financial Times 2014

Business Schools
Spanish Business Schools have three MBA programs among the top 20 in the world
62
Global MBA ranking 2015
2015 Ranking School name Country
1 Harvard Business School USA
2 London Business School UK
3 University of Pennsylvania: Wharton USA
4 Stanford Graduate School of Business USA
4 Insead France/Singapore
6 Columbia Business School USA
7 Iese Business School Spain
8 MIT:Sloan USA
9 University of Chicago: Booth USA
10 University of California at Berkeley: Haas USA
11 Ceibs China
12 IE Business School Spain
13 University of Cambridge: Judge UK
14 Hong Kong UST Business School China
14 Northwesterm University: Kellog USA
16 HEC Paris France
17 Yale School of Management USA
18 New York University: Stern USA
19 Esade Business School Spain
20 IMD Switzerland
Source: Financial Times 2015

63
Human Capital: Highly skilled labor force
Spain occupies a great position in Europe in number of persons with
tertiary education, in comparison with the biggest European economies
Business Climate
0
10
20
30
40
50
60
United Kingdom France Spain Germany Italy
Source: OECD. April, 2015
Note: 2013, last data available
Population with tertiary education, 2013
% 25-34 year olds

4. Business climate
o Immigration
64

65
4. Business climate: Immigration
International mobility - New legal framework
THE PROCEDURES
10 days for visas and 20 days for authorizations
A single authorization for living and working in Spain
Valid for the whole of Spain
The family will be able to apply at the same time
GENERAL REQUIREMENTS
Not being in an illegal situation in Spain
Being 18 years old or older
Not having criminal records
Public or private health insurance in Spain
Enough economic resources.
VISA AND AUTHORIZATION
CONCESSIONS FOR
Investors
Entrepreneurs
Highly qualified professionals
Scientists and researchers
Intra-corporate transferred employees
Freedom to live in Spain: Granted residence and work permits authorization
Benefits of the Schengen visa: freedom of movement
within the member states
Real Estate 500.000 €
Spanish
Companies
1 mill. €
Bank Deposit 1 mill. €
Public Debt 2 mill. €
It is based on an agile and specialized system for visa and authorization concessions.
Source: http://prie.comercio.es/en/pages/programa-de-residencia-para-inversores-y-emprendedores-(prie).aspx

66
4. Business climate
o Quality of life: Expat setting up
66

Foreign Schools
There are currently 180 international schools in Spain, including 116 English spoken
Schools, 24 French Schools and 19 German Schools, among others
4. Business climate: Quality of life
67
100
24
19
16
5 5 4 2 1 1 1 1 1
0
20
40
60
80
100
120
Source: Ministry of Education, Culture and Sports, 2014
Foreign Schools 2014

Spain is the 1st country in Europe in terms of quality of life for ex-pats and
3rd-ranked worldwide
With large communities of many different nationalities, Spain is known for its highly
cosmopolitan character. On average, 12.2% of the Spanish residents are foreign-
born, a figure that rises to 16-17% in regions like Madrid or Catalonia
One of the largest number of International Schools in Europe
Outstanding & modern health system with very high standards
Favourable fiscal regime for expatriates
Law enforcement: Assurance & stability in business and social life
Excellent climate, first-class gastronomy, wide range of cultural and leisure
activities
68

Expat Experience. League table of selected OECD countries
Source: Own elaboration based on The Expat Explorer Survey 2012.(HSBC)
Country Overall Experience Overall quality of life Overall integration Overall setting up
Spain 1 1 1 4
Switzerland 2 2 11 9
Germany 3 3 5 7
Australia 4 7 4 1
France 5 5 3 8
Canada 6 9 7 2
New Zealand 7 8 13 3
Belgium 8 6 9 10
United Kingdom 9 12 2 5
Netherlands 10 4 12 12
USA 11 11 8 6
Italy 12 10 6 11
Japan 13 13 10 13
69

5. Business opportunities
Automotive
ICT (Information and Communication Technologies)
Biotechnology, Pharmacy and Life Sciences
Aerospace
Logistics and Transport
Environment and Water Treatment
Chemical Industry
Nanotechnology
Agro-food
Real Estate
Tourism and leisure
Natural resources
Textile &Retail
70

5. Business opportunities: Automotive
71
Investing in Automotive

72
Why Spain for Automotive?
SPAIN is a key Player in the European Car Industry.
2nd manufacturer in the EU and 8th worldwide.
Productive and flexible manufacturing plants.
High Future Investment committed by Main Car manufacturers.
Powerful industrial supply chain and Auto Parts Industry.
Availability of highly qualified human resources.
High public and private investment in Professional Training.
Leadership in European Industrial Innovation-Mobility Sector.
Privileged Export Platform towards EU, Latin America, North Africa.
Open Country for Foreign Investment.
Public Support for Business Development.

73
Key figures: Automotive Industry in Spain
Spain is the 2nd-largest car manufacturer in Europe and 9th in the world.
Spain is the 1st manufacturer of Industrial Vehicles in Europe *
Most of the world's biggest car manufacturers are present in Spain with 17
automobile production plants.
Nine out of ten vehicles Made in Spain are exported to over 130 countries
Spain Automotive Parts Industry ranks 6th in the world in terms of turnover.
* Including light commercial vehicles

74
Sources: ANFAC (Spanish Association of Vehicle Manufacturers) · SERNAUTO (Automotive Parts Exporters Association )
Latest available figures
Key figures: Automotive Industry in Spain
Vehicle manufacturing in Spain was up 11% in 2014 reaching 2.4 million units
Automotive Industry turnover accounts for 10% of Spain’s GDP.
300,000 people directly employed in the Industry.
2,000,000 jobs linked to the Sector.
2.1 Million vehicles exported to 130 Countries in 2014 Export value €30bn.
Vehicle exports increased by 8.5% in 2014 to 2,039,893 units.
Automotive Industry Main exporter with 18% of total Goods Exports.
3-4 Million vehicles transported every year through the territory.
34 Technology Centres devoted to Automotive Industry.
R&D: One of the highest investment rates among all industries
€63 Million Annual average Investment in Professional Training by Car Manufacturers.
Lower Unit Labor costs than EU average in the Industry.

75
Sources: ICEX-Invest in Spain · Real Instituto Elcano · Ministry of Economy and Competitiveness (dataInvex)
Key figures: Foreign Direct Investment
New Industrial Plans have been approved by the 9 Multinational brands established
in the country.
13 new models assigned to Spanish plants between 2012-2015.
€5 billion investment in progress to expand production in Spanish Plants, including
new models and electric models
Plan of the Spanish Industry to produce 1 Million extra vehicles “3 Million Plan”.

76
Automotive Industry in Spain: AUTO-PARTS
Spanish Auto-Parts Industry ranks 6th in the world in terms of Turnover.
Main global suppliers of the Automotive Industry established in Spain.
1000 companies belonging to 720 groups provide customized Service to Car Manufacturers
191,000 people directly employed in the Sector
Turnover of €27.5 bn in 2013, 65% exported to 150 countries.
EU, USA, Mexico, North Africa and BRICs top ranking destinations of Spanish Exports.
€1,500 millions total industrial investment in 2013 – €785 million in R&D&i
Source: SERNAUTO (Spanish Association of Automotive Parts and Accessories Manufacturers). Last available figures: 2013.

77
Spanish Companies and Technology Centers are leading the 3 European projects on new batteries:
NECOBAUT, SOMABAT, GREEN LION.
The Spanish Technology Platform Move to Future ww.move2future.es brings together 150 Key
innovative Companies, Research and Technology Centers.
Spanish Scientific, Technological and Industrial capabilities on future transport are well
summarized in the document Intelligent Strategy for Future Transport (Green Vehicles
Spain).
120 Eco-electromobility projects with Spanish Participation and 110 New Products/Services compiled
for Green Car Initiatives.
Eco-Electromobility: Spanish Capabilities and Leadership
Spain contributes to Eco-Electromobility as a major
component designer and manufacturer and as provider of
Infrastructures and Network Intelligence.
Spanish Companies and Technology Centers have taken
part in 2 out of 3 of the projects of the European Green Cars
initiative.

78
RENAULT, MERCEDES -BENZ, PEUGEOT- CITROËN, NISSAN are already manufacturing full
electric powered and hybrid vehicles in Spain.
i2e Full Electric Bus of IRIZAR already in the Market.
AUTO-PARTS companies with plants in Spain are already providing specific components and
systems for electric and hybrid vehicles.
Eco-Electromobility: Spanish Capabilities and Leadership

79
Sources: fDi Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).
Success stories
News/Investment Projects
RENAULT
November 2012 Renault approves the Industrial Plan 2012-2014 for the Manufacturing
Plants of Palencia (Megane), Seville and Valladolid (Captur and Twizzy models). 100
new jobs will be created in Seville's Transmissions Plant.
IVECO- (Fiat Group)
Industrial Plan up to 2016 for the manufacturing centers of Madrid and Valladolid (Heavy
Vehicles). Investment of €0.5 billion and creation of 1200 jobs throughout this period.
FORD
US-based automotive giant Ford will expand its manufacturing complex in Almussafes,
Spain. The company will build a new 80,000 m2 plant at the site to produce its own
automotive parts and increase the production of Ford Kuga by 10%. €1.1 billion
investment has been committed through the period 2009-2013.
MERCEDES
In 2013, the company will Invest up to €200 Million to adapt Vitoria Plant Facilities for the
new VITO VS20 and its Electric Version. The Industrial Plan secures jobs at the plant.

80
Sources: fDI Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).
PSA Peugeot-Citroën
It is to create 1000 new jobs in 2013 in the Manufacturing Facilities of Vigo for the
Production of Citroën C-Elysee, Electric Versions of Peugeot Partner and Citroën
Berlingo and New C4 Picasso.
NISSAN
In 2014, announces €130 Million Investment in Barcelona’s Plant to produce a new
Sedan starting 2014, and investments of €10 Million in its components manufacturing
plant of Cantabria.
GM
Includes Spanish Plant of Figueruelas in its Industrial Plan for Europe that will drive
and investment of up to 4 Billion in 23 new OPEL models in Europe for the period 2013-
2016.
SEAT (VW Group)
The group VOLKSWAGEN invested €665 Million in the SEAT Plant of Martorell in 2012,
including €100 Million in R&D and €13 Million in Professional Training. Martorell is one
of the Group’s most productive and flexible plants, with 377.000 units in 2012 including
the New Audi Q3. In 2013, the Plant will market the new SEAT Leon models.
80

81Source : SERNAUTO (Spanish Association of Auto-Parts Exporters)
Automotive Industry in Spain: AUTO–PARTS. New Investment Projects
New Investment announcements by Auto-Parts Multinationals in 2013
FAURECIA
The French multinational of Auto-Parts has chosen Valencia to set up its fifth R&D Centre
in Spain. It will be located in the Technology Park of Paterna and is to employ 200
Technicians.
MAHINDRA
The Indian giant, leading manufacturer of Components in Asia, buys a 13.5% share of the
Spanish company CIE Automotive for €96,24Million sealing a worldwide strategic alliance.
SAMVADARDHANA MOTHERSON PEGUFORM
It has announced plans to invest €5M as a part of its €30M expansion Plan to expand
production capacity in its manufacturing facility in Ripollet (Spain) to increase production of
sintered auto-parts at the site. The entire investment will create about 100 jobs.
MAFLOW SPAIN AUTOMOTIVE
The Auto Parts company owned by the Polish Industrial Corporation Boryszew invested
€2Million in 2013 to expand production at its Plant of Guarnizo (Cantabria-Spain).
MAFLOW is one of the larger manufacturers of Air Conditioning tubes worldwide. Guarnizo’s
Plant is its only manufacturing Centre in Spain with 100 employees.

82
Investing in ICT
(Information & Communication Technologies)
5. Business opportunities: ICT

83
Spain is a leader in advanced technologies:
Spanish landing software is renowned and used worldwide
Major events/Complex, distributed international delivery
Hi-Tech and Defence Industry
Telecommunications, Utilities, Energy, Banking…
Mobile World Congress in Barcelona World’s Mobile Capital
Nearshoring value added location worldwide (BPO & IT)
Spanish companies are present and recognized in major international markets:

Spain is one of the most important ICT market by volume in Europe: €88,164
Million.
There are near 30,000 ICT companies, including digital content, operating in Spain.
The sector is currently 1 employing almost 400,000 workers.
The gross added value at market prices represents the 4.7% of GDP in 2013.
Information and Communication Technologies Industry in Spain
84
Source [1] : ONTSI (Spanish Observatory for the Telecommunications and Information Society), 2014. Data 2013 (Last data available)
Spain ICT Sector Turnover 2013
35.5%
30.6%
15.1%
16.1%
2.7%
Telecommunications
Information Technologies
Production
Digital Content
€88.16 Billion
Commerce

85
Leading ICT multinationals are already successfully located in
Spain, taking advantage of Spain’s benefits:
Software Vendors Hardware Vendors
Telecom equipment vendors
ICT Services and Consulting Companies
Service Providers

IBM was set up in Spain in 1926. Today, the Spanish subsidiaries have 7,200 employees.
IBM Spain coordinates the activities of IBM in Portugal, Greece and Israel.
Projects developed in Spain:
•Centre of excellence in Barcelona to develop solutions for financial entities and the
health sector.
•INSA, an IBM branch, has set up two centres (Caceres and Salamanca) for software
developments to be applied worldwide.
•MareNostrum, supercomputer installed in the Barcelona Supercomputing Centre in
collaboration with the University of Catalonia.
•Technology Expert Council (TEC), which integrates IBM’s best talents in Spain to
enhance the leadership of the company and develop its technical knowledge.
In the beginning, HP was set up in Spain as a manufacture centre.
Nowadays, it has changed its strategy and has set up worldwide recognized support and
R&D centres.
Success stories
86

According to Walter Ji, CEO of Huawei for Spain and Portugal,
Huawei has contributed to the transformation of Telefónica
through its IT solutions and the evolution of their network
infrastructure equipment, reaching an extensive footprint
across the Group
At the same time, Huawei has completely transformed the
portfolio of devices for the customer in the countries where
Telefónica is present, especially mobile devices, where 2 out of
3 units already sold by Huawei are smartphones
In addition, the Huawei vertical cloud solutions for different
industries have worked strategically in the process of
transforming the B2B business of Telefónica.
Telefónica, Mozilla and ZTE launched the world’s first
commercial Firefox OS with the ZTE Open available at
Movistar stores from last July.
The ZTE Open offers customers a smartphone experience
at an incredible price point.
Firefox OS devices will also be launched by Telefónica in
other markets, including Colombia and Venezuela.
Success stories
87

5. Business opportunities:
Biotechnology, Pharmacy and Life Science
88
Investing in Biotechnology,
Pharmacy and Life Sciences

89
Solid Basic Science: Good scientific
output. Spain is 10th world scientific power
and 5th by scientific production in the EU15.
Integrated Healthcare System: Spain has an extensive network of
university hospitals, both public and private, backed by leading-edge
research centres. The system is ideal for translational medicine and
discovering new drugs and advanced therapies.
Emerging Biotech Industry: biotech companies are growing faster here than in other
countries. Spain is providing strong support for the surge in biotechnology and its lateral
application to other sectors.
Excellent infrastructure for innovation: exponential growth of science and technology
parks, research centres and institutes of technology. Spain’s infrastructure also
incorporates the latest technology for life science projects.
Highly qualified workforce: in some areas of Spain the percentage of workers with
post-graduate studies is higher than the European average. There is a surplus of talent
for competitive and innovative projects.

Source: ASEBIO 2013 Report 90
Growing number of biocompanies and dynamic creation of highly qualified jobs
More than 3000 companies involved in biotech activities and 625 strictly biotech
203,000 employees (+0.36%) and 9000 R+D activities dedicated (+2.14%).
Breakdown of biocompanies by activity
Of all strictly biotech companies 53% focus on healthcare and 32% on agro-food.
68% of industrial companies related to biotechnology focus on agro-food and 20% on healthcare
Strong SPIN-OUTs culture
Every year public institutions create between 10 and 14 new companies.
Solid macroeconomic impact
Directly and indirectly, the sector accounted for 7.8% of Spain’s GDP
in 2012 (data close to traditional sectors as tourism and automotive)
Consolidation of Spanish biotech sector
Biotechnology
in Spain

91
Distribution of biotechnology companies and
biotech users by region
After Madrid and Catalonia, Andalusia is the
autonomous region with the highest number of
strictly biotech companies.
Most biotech companies are located in Catalonia
(21.76%), Andalusia (16.15%), Madrid (15.91%)
and Basque Country (10.91%). Together they
accounted for nearly the 50% of the national total in
2012.
Source: ASEBIO 2013 Report

Source: FarmaIndustria Annual Report 2012 · PMFARMA website
Distribution by region
These companies are mainly
located in Catalonia and the
Madrid autonomous region,
which both have long-standing
pharma traditions.
Important companies can also
be found in other regions such
as Navarre, Andalusia and
Galicia.
Pharmaceutical Sector: overview
92
There are about 425 pharma companies in Spain, including some with no production and/or marketing
activity. Near to 60% are foreign companies.
Leading pharmaceutical/biotech multinationals are already located in Spain many of which have
successfully chosen our country for the establishment of Research Excellence Centres, Production or
Distribution Centres.

Source: FarmaIndustria Annual Report 2013
93
Pharmaceutical Sector: R&D spending and workforce
The pharmaceutical industry is leader in R&D spending in Spain
Pharmaceutical companies set aside near to €1000 M. for R&D.
The sector accounts for 21% of all private R&D spending in Spain.
Outsourcing R&D
Apart from in-house R&D, the pharma industry leads the way in outsourcing this to other
companies.
Job creation in R&D
The pharma industry has 4537 employees working full-time on R&D.
This is 12% of all R&D employment in Spanish industry.
200000 total employment rate, direct and indirectly.
Biomedical researchers
The biomedical industry created 2153 jobs for graduate employees working exclusively on
R&D.

Source: FENIN annual report 2013
Healthcare Technology: overview
The healthcare technology market
This sector invoiced about €6800 M.
It comprises more than 1050 companies.
Job creation
The healthcare technology sector employs more than 29,000 people.
Exports are growing
The value of exports exceeded €2082 M.
This figure represents 0.89% of total exports in Spain.
Important trade partners
The target market is still the rest of the EU, which takes 60% of exports.
Asia and South America are playing an increasingly important role as big importers of
Spanish technology and products.
94

Source: press articles
Success stories
Proof of concept for the global market
95
Merck has concentrated its global growth-hormone production in Spain and has recently
announced a €14M investment to increase by 50% the production capacity of its facility in Madrid.
Novartis announced in 2013 a €60M investment to expands its facilities in Catalonia for the
manufacturing of the entire production line of inhalers. The expansion will create 70 jobs.
Lilly has in Madrid its research centre for medicinal chemistry, one of the biggest in the world
investing €20M and is planning an increase in its production and R+D activities.
Bayer has concentrated its global aspirin production in Asturias investing 6M€.
Celgene opened its first research centre outside the United States in Seville. The Celgene
Institute of Translational Research Europe (CITRE) plans to focus on advanced therapies and
regenerative medicine investing €60M.
Genzyme has set up a sales office in Madrid and has a warehouse for domestic distribution.
GSK has in Madrid its research centre for tropical diseases, Molecular Discovery Research and
Drug Discovery activities. It plans to invest €20M in the next 4 years in their production center in
Castilla y Leon.
TEVA manufactures in Spain all the “Omeprazol” that exports to Europe. In the last 5 years it has
invested €33M in its factory in Zaragoza.

5. Business opportunities: Aerospace
96
Investing in Aerospace

The Spanish Aerospace Industry is 5th in Europe in terms of turnover (€9.4 billion in
year 2014) and employment (more than 50,000 employees).
The Spanish space sub-sector is 5th at the European level, employs almost 3,400
people and had a turnover of ca. €720 million in year 2014.
Half of the commercial aircraft in the world uses Spanish technology.
R&D:
The investment in R&D activities reached
€987 M in year 2014 (10.5% of the
industry turnover)
Government support:
The Spanish authorities consider the
Aerospace Industry one of the Strategic
Industrial Sectors.
Creation of several public R&D centres
focused on the aerospace industry.
Aerospace Industry in Spain
97

98
R&D: invests 11% of turnover in R&D (€987 M in year
2014)
Highly qualified human resources: 40% of the
aeronautics employees are University graduates or
engineers and 47% are highly qualified technical
professionals.
Government support: The Spanish authorities consider
the aerospace sector to be strategic so it offers several
grants and incentives lines.
Creation of several public R&D centres focused on the
aerospace industry.
The Spanish Aerospace industry is the 5th in Europe (and 8th in the world) in terms of turnover (€9.4 billion
in year 2014) and employment (more than 50,000 employees).
The Spanish Aeronautics industry is a world leader in several fields: composite aero structures, low
pressure turbine engines, Air Traffic Management systems, Military Transport Aircraft, etc.
The Spanish Space industry takes part in important contracts of high added value, in qualification of flight
equipment and ground segment, and development of satellite systems. Moreover, Spain has satellite
services operators. The Spanish Space sub-sector is 5th at European level, employs almost 3,400 people
and had a turnover of ca. €720 million in year 2014.
Half of the commercial aircraft in the world uses Spanish technology.

99
Spain has significant Aeronautics Clusters: they provide new entering
companies with infrastructures, research centers, technology parks
offering interesting synergies.

BOEING has developed important R&D Centres in Spain:
•First Boeing R&D centre outside the USA
•Main areas: safety, ATM and environmental technologies
•April 2008: first flight of an aeroplane powered by hydrogen fuel cells – Ocaña
(Madrid)
According to Boeing:
“The reason for choosing Spain was the country’s outstanding role in the EU and
as a reference point with the Latin American countries.
It also shows the relevant position the Spanish Aerospace industry has acquired in
the last few years and the country’s capabilities in environmental and ATM
technologies”
Source: www.boeing.es
Success stories
100

101
The Consortium EADS-AIRBUS has a very significant presence in Spain
Civil
aircraft
A380 – Double-deck, wide-body, four-
engine jet airliner. It is the world’s largest
passenger airliner.
It began commercial service in October
2007 with Singapore Airlines.
Spain has a participation share of 8%.
A350XWB
Last Airbus civil aircraft model: from 250 to 350-seater. Over 70% airframe is made from
advanced materials: composite structures, titanium and advanced aluminum alloys.
The two first test flights have already been developed.
Spain has a 11% share of the program.
HMC (Harbin Hafei Airbus Composite Manufacturing Center is a joint venture between
Airbus (20%) and its Chinese partners (mainly Harbin Aircraft Industry Group, 50%).
HMC manufactures elevators that are being delivered to Spanish company Aernnova
(the first ship set was delivered last September 2013).
Aernnova will later on deliver those elevators to the Airbus plant in Getafe (Madrid,
Spain).
Success stories

102
A400M – Military transport aircraft
Spain has a 15% of participation share, including:
-Final Assembly Line
-Simulation and training Center
- Services Logistics Hub
All of them located in Seville (Spain)
The first A400M aircraft have already been
delivered to customer (France) in September 2013.
A330 MRTT – Multi Role Tanker Transport
Refueling aircraft, entirely developed by
Spanish industry, including a refueling pole
with electric controls.
Eurofighter Typhoon– Multi Role Fighter
14% share of participation by the Spanish
industry. Major components developed in
Spain:
-Right wing
-Leading edge slats.
Eurocopter– Military helicopter
Plant located in Albacete (Spain):
-Final Assembly Line
-Delivery Center
For models: NH-90, TIGER and EC-35
The Consortium EADS-AIRBUS has a very significant presence in Spain
Military
aircraft
Success stories

103
Investing in Logistics and Transport

Logistics and Transport Industries in Spain
104
Spanish Logistics Sector ranks among the top-20 in the world according to
the latest Logistics Performance Index of the World Bank (11th among EU
countries)
Turnover €98.0 Billion
• Logistics
• Road, Railway, Sea and Air Freight
• Growth rate of 7% in the last 3 years
• Almost 4% of the Spanish GDP
Employment > 861,000 workers
• 4.2 % of active workers in Spain
• 90.8% occupancy rate
Companies > 200,000
• Structure: High market concentration
• 90% SMEs
• 10 large enterprises manage 27% of the business
Source: National Institute of Statistics, 2014 · Logistics Performance Index (The World Bank)
45,3%
1,8%
8,7%
44,2%
Road & Rail Freight
Sea Freight
Air Freight
Warehousing and other activities related to transport
Turnover 2012

105
Railway Air Road Sea Total International Freight
RailroadandAirfreight
(MnTonnes/year)
TotalInternationalfreight,SeaandRoad
freight(MnTonnes/year)
2007-2013 Evolution of International Traffic
(million Tn)
Source: Annual Report, 2014 – Spain’s Transport and Logistics Observatory.

106
29 Container Terminals in 21 Ports
• Capacity: 22,1 Million TEUs/year
• Ocuppied surface: 7,73 Million sq m
• Average productivity: 545 TEUs/m
In 2014 a total 7.66 Million
cruise passengers

107
• The Infrastructure, Transport and
Housing Plan (PITVI) (2012 - 2024)
states a stable and sustained investor
scenario of up to 0.94% of GDP during
the period.
• The Trans-European Transport
Network development encloses the
Spanish Corridors in the Atlantic and the
Mediterranean Sea to foster the Logistics.
• The Mediterranean Corridor plan
connects the Mediterranean Spanish
Seaports to a rail corridor which links
North Africa to Central Europe through
Spain.
• Intermodal investments: Spanish Ports
increase their commitment for 2015 to
over 423 million euros mainly focus on
completing basic infrastructure projects
and improving road and railway
connections.

Success stories
• DHL Spain is the key input platform across the DHL network to Latin American markets.
Invest in Spain.
• TNT International Operations Centre Madrid - Barajas (Spain) became hub for South
America in 2002. Today, shipments to and from fifteen South American countries are
handled from the Barajas Hub and to its whole network.
• Total Terminal International Algeciras (TTIA) part of the South Korean Hanjin Shipping
group builds its first container terminal semi-automatic of the Mediterranean and Southern
Europe.
108

Success stories
Hutchison Port Holdings, a subsidiary of Hong Kong conglomerate Hutchison
Whampoa, operates the new semi-automatic container terminal of the Prat quay at the
Port of Barcelona, which represents an initial investment of 300 million Euros and aims
to be the largest terminal in Southern Europe.
Mexico's Pemex will install its European operations base at the port of A Coruña which
implies a direct investment of $70 million.
The Danish APM Terminals Algeciras will devote €42 million investment to meet their
new triple-E ships in the port of Bahia de Algeciras.
Toyota Motor Europe (TME) sets up a new logistics centre in Illescas for the delivery
of the brand’s spare parts and accessories in Spain.
The German Vossloh Rail Vehicles operates one of its engineering centres, a
reflection of its commitment to innovation, in Valencia, Spain.
One of the main actors of E-commerce in Europe, Vente Privée, opens its third
logistics platform in Spain after Germany and Italy.
109

Environment and Water
110
Investing in Environment and Water

Environmental Industry in Spain
111
The Spanish environmental sector accounts 3,6% GDP
Sales: 40.355 million €
7.780 companies employing 530.947 people directly
(estimates put employment at 1 million in 2020)
• 26,4% work in Waste treatment and management.
• 11% work in Water treatment.
Environmental Industry in Spain
Success stories
Spain ranks fifth in the world and third in Europe for ISO 14001 Environmental Management
certificates with more than 16,500 awarded.
In 2011, the EU granted 85.8 million € to 29 Spanish projects on nature preservation, climate
change, environmental policy, clean technologies and environmental information and
communication.
Areas that require urgent attention and offer opportunities to foreign investors include
WasteManagement, Air Quality and Water Treatment:
• Waste generation: 463 kg/inhabitant in 2012
• Emissions: 6,2 tonnes of CO2 equivalent/inhabitant in 2011
• Water consumption: 112 litres/inhabitant/day in 2014
Sources: Estudio del sector económico del medio ambiente en España 2011 - MAGRAMA
EUROSTAT

Public entities Private companies
Environmental Industry in Spain: key players
112
EUROPEAN
ENVIROMENTAL
AGENCY
www.eea.europa.es
• Provides sound &
independent
information
• 32 member countries
SPANISH MINISTRY OF
ENVIRONMENT AND
AGRICULTURE
www.magrama.es
• Makes proposals
and develops the
implementation of
government policy
17 REGIONAL
AUTHORITIES
• Definition and
implementation of
environmental policy.
• Regional
environmental
authorities often
called “Consejerías”
MUNICIPAL
AUTHORITIES
• Subsidies,
Fines refuse
collection, street
cleaning etc.
• Local environmental
authorities, often
called ‘Concejalías’

The Water sector in Spain (1/2)
113
• Maximum reservoir capacity (2014) 55,977 hm3
• Reserves (October 2014) 35,643 hm3 (63.7%)
• Domestic consumption (2014) 112 liters/inhabitant/day
Water
Origin
Uses
Urban Supply 4.485 hm3
Irrigation 15.832 hm3
>700 towns with >2000 inhabitants with no waste water treatment plant
Treatment
3.375 hm³/year of treated waste water by 2.533 WWTP
400-500 hm³/year reused by regeneration systems
Sources: MAGRAMA, INE, AEAS-AGA
Urban Supply
Surface (Dams, rivers…) 67%
Underwater sources 29%
Others (Desalination, depuration) 4%
Irrigation
Surface (Dams, rivers…) 76,9%
Underwater sources 21,5%
Others (Desalination, depuration) 1,6%

24,000 companies involved in the water sector
212,300 jobs
Water sector annual turnover: approx. 32,000 million euros
Business
Opportunities
Strengths
Sectorial targets match general interest.
Great quality and innovation in Spanish water industry.
Sector generates employment and wealth.
Large number of products, solutions, high technological level.
International experience and reputation.
Strong sectorial network.
The Water sector in Spain (2/2)
114
Sources: PTEA
Growing demand of water supply & water treatment.
Rising social concern about water use and efficiency.
Demand if integral solutions (EPC + O&M).
Growing investments & financing in developing and emerging countries.
International projection of Spanish water companies.
Excellent public-private cooperation in I+D+i .

Desalination
115
• Spain is the 1st producer of desalinated seawater in Europe and America
• Spanish companies are leaders in Reverse Osmosis Technologies.
• Interesting cluster:
• More than 700 desalination plants in Spain according to the Ministry of
Agriculture, Food and Environment.
• International Expertise in constructing desalination plants (Befesa, Cadagua,
Acciona…)
• R&D. Research centers actively involved in desalination:

5. Business opportunities: Environment and Water
Waste Management sector in Spain (1/3)
Agriculture
& related
5%
Domestic
18%
Services
24%
Mining
19%
Industry
12%
Constructio
n
22%
Waste Generation:
Economical sectors
Paper,
cardboard
15%
Glass
8%
Wood
2%
Bricks
1%Textile
5%
Food waste
7%
Plastics
9%Metals
3%
Organic
matter
42%
Other
8%
Composition of Urban Waste
The Spanish Government is currently processing the Residues Framework Plan
(PEMAR) for the period 2015-2020.
By 2016, Spain must achieve a reduction of 47% to 35% in biodegradable urban waste
dumps. This means that additional 5.3 million tons of must be treated.
By 2020 the fraction of recycled/reutilized residues must increase from 30% to 50%.
Waste treatment expenditure still low, 35 euro/Tn (European average 100 euro/Tn)

117
Sources: MAGRAMA, Eurostat
As much as 60% of waste is still dumped, 45% of which is not treated.
Incineration
11%
Compostage,
anaerobic digestion
14%
Recycling
15%
Dumping
w/treatment
27%
Dumping w/o
treatment
33%
Destination of Urban Wastes
Room for improvement, great business opportunities

118
Sources: MAGRAMA, Eurostat
Mixed waste
82%
Biodegradable
4%Packages
3%
Papel & cardboard
5% Glass
3%
Other
3%
Separated
18%
Waste Collection
PEMAR: Separation in origin must improve from current 18%.
Room for improvement, great business opportunities

5. Business opportunities: Chemical Industry
119
Investing in Chemical Industry

120
Main Figures of the Spanish Industry-2014 :
3,000 Companies with a turnover of 56,4billion €
12,4% of Spanish Gross Industrial Product.
540,000 direct and induced high qualified jobs.
High Domestic Consumption of Chemicals (1,200 € /capita).
2nd largest exporter of Spanish Economy with more than 32 billion €.
Spain is Gateway to EU market and EMEA & Emerging Markets.
Leader Sector in Innovation: 25% of Industrial Investment in R&D&I.
Competitive Talent: 118,600€ added value per-employee.
Sustained Growth : 54.5% growth through last 10 years.
Strategic Sector of the Spanish Economy.
4.5% annual growth of Chemical products demand forecasted worldwide
Source: FEIQUE:(Spanish Federation of Chemical Industries)
35.771
49.743 52.585
47.714
53.153 55.657 55.117 55.282 56.400
0
10.000
20.000
30.000
40.000
50.000
60.000
2000 2007 2008 2009 2010 2011 2012 2013 2014
Source: INE. Industrial Company Survey, Production and Price Index, and Own elaboration
Evolution of Turnover in the Chemicals Sector
200-2013 (millions €)
Business opportunities: Chemical industry

Gases
2,1%
Inorganic
2,6%
Organic
14,8%
Fertilizers
3,6%
Plastic and Rubber RM
20,5%
Fibers
0,9%
Colorants
1,4%
Pharmaceutical RM
5,5%
Pharmaceutical Specialities
21,3%
Agrochemicals
1,9%
Paints and Dyes
6,7%
Detergents and Cleaning
Products
6,1%
Perfumery and Cosmetics
6,1%
Other Consumables
6,4%
121
Spanish Industry : Sectoral Specialization (Turnover 2013 (%))
Source FEIQUE: Spanish Federation of Chemical Industries –www.feique.org –National Statistical Office -INE

122
Mediterranean Region:
Largest Chemical Cluster in
Southern Europe and Mediterranean
Area: ChemMed in Tarragona. Key
Clusters in Huelva and Algeciras.
Chemical strategic sites in
Valencia and Murcia.
North Chemical Sites:
Cantabria, Asturias, Pays Basque.
Non Coastal Chemical Regions:
Madrid,Aragón,Castilla-León,Castilla
La Mancha.
Investment Locations:
Productive sites and Clusters providing industrial and Logistics
infrastructures.

123
Guaranteed Energy Supply and Investment in Infrastructures.
Diversified energy mix with high contribution of renewables.
Secure National Electricity System- 102,281 MW installed power.
Largest gas infrastructures and storage capacity in Europe.
High Public Investment committed to boost freight transport and
intermodal infrastructures and logistics hubs.
Agreement of the Spanish Chemical Industry with the Ministry of
Public works to develop direct connections between rail network
and Production Plants.
Vast Structure of financial programmes for Reindustrialization
and Innovation activities.
Infrastructures - Energy Supply and Investment Support.

124
According to FDI Markets Spain Ranks 2nd destination for Research &
Development projects and 5th destination for New Chemical projects (all
business activities) of Multinationals in Europe (period 2004-2014).
Destination
Countries
Research &
Development
Manufacturing Headquarters
Design,
Development
& Testing
Logistics,
Distribution
& Retail
Others Total
UK 61 188 26 30 39 87 431
Spain 33 178 15 11 16 39 292
France 28 245 10 17 15 78 393
Germany 23 286 22 22 20 187 560
Ireland 21 67 9 3 25 14 139
Belgium 15 113 6 16 13 34 197
Russia 14 234 4 8 16 88 364
Hungary 13 111 1 - 17 22 164
Sweden 9 39 7 2 7 15 79
Poland 8 193 1 6 16 61 286
Austria 8 41 3 3 8 14 77
Total World 4,320
Country Ranking New Chemical Projects* in number of Projects
Source FDI Markets Data Base. *Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).

125
Parent company Projects Capex Avg Capex Jobs Created Avg Jobs Companies
Bayer 11 144.3 13.1 325 29 4
BASF 10 365.3 36.5 448 44 4
Ube Industries 10 498.4 49.8 623 62 3
Dow Chemical 9 722.6 80.3 403 44 2
Novartis 8 665.3 83.2 1,135 141 1
DuPont 7 380.8 54.4 367 52 2
Boehringer Ingelheim 6 118.9 19.8 233 38 2
Sanofi-Aventis 6 163.9 27.3 525 87 2
Messer Group 5 110.3 22.1 139 27 1
General Electric (GE) 5 1,806.3 361.3 1,175 235 3
Michelin 5 180.8 36.2 386 77 1
Solvay 4 113.8 28.4 106 26 2
Merck & Co 4 550.4 137.6 986 246 3
Israel Chemicals (ICL) 4 395.0 98.8 826 206 2
Henkel 4 13.3 3.3 74 18 2
Les Laboratoires Servier 4 30.9 7.7 81 20 2
Hexcel 4 190.5 47.6 165 41 2
Renolit 4 89.1 22.3 72 18 2
AkzoNobel 4 73.6 18.4 160 40 2
GreenChem 3 79.5 26.5 123 41 1
Companies 21 to 163 175 4,740.6 27.1 8,650 49 149
Total 292 11,433.4 39.2 17,002 58 191
New Chemical Projects by Parent Company, investing in Spain in four selected sectors* (millions USD)
292 New Projects have been developed by 163 worldwide Multinationals with a Capital
Expenditure of 11,433.4 millions USD. (period 2004-2014)
Source: fDi Intelligence. * Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).

126

5. Business opportunities: Nanotechnology
127
Investing in Nanotechnology

128
Source: NanoSpain · Phantoms Foundation
NanoSpain: Spanish Nanotechnology Network (www.nanospain.org) brings together
310 research groups, 50 companies and a research task force of around 2,500
researchers and technicians. Network coordinators: Phantoms Foundation
(www.phantomsnet.net) and CSIC (www.csic.es).
Phantoms Foundation (www.phantomsnet.net) focuses its activities on nanoscience &
nanotechnology and is a key actor in structuring and fostering European excellence and
enhancing collaborations in this field.
100 innovative companies providing a general overview of the sector in Spain
catalogue: http://www.phantomsnet.net/Resources/nanodoc.php?project=1
Spanish N&N Thematic Networks: RENAC (Construction), SUSCHEM
(Sustanaible Chemistry); NANOMED (Spanish Nanomedicine Platform); GENESIS (STP
Nanotechnology and Smart Systems Integretion); MATERPLAT (STP Advanced
Materials and Nanomaterials); and FOTONICA 21 ( STP Photonics).
Nanotechnology Initiatives and Companies in Spain

129
Source: Phantoms Foundation www.phantomsnet.net
Research Groups in Nanospain Network ( Regional Distribution July 2012) 334 groups

130
Source: Phantoms Foundation www.phantomsnet.net
Emerging N&N in Spain
Nanotechnology Initiatives/ Infrastructures

131
Sources: CDTI (Centre for Industrial Technological Development · CSIC (Spanish National Research Council )
In the fields of graphene research Spain occupied the 8th position in the ranking of
countries in published papers 2004-2011. (source Thomson Reuters Global Report
Material Science)
Spain is actively participating in the EU Graphene Flagship. 300 Spanish researchers
are currently working on graphene (source: CSIC - Institute of Materials Science of
Madrid)
CSIC –National Research Council stands 3rd among world wide Institutions in
Graphene research (Thomson Reuters Global Report)
Spanish emerging companies among European leaders in graphene production and
exports. Graphenea (www.graphenea.com), Granph Nanotech
(www.granphnanotech.com) or Avanzare (www.avanzare.es) are developing innovative
processes and advanced products to supply companies as Nokia, Philips, Canon,
Nissan or Sigma Aldrich.
CDTI (Center for Industrial Technological Development) and the Spanish petrochemical
multinational REPSOL have co-invested in the company Graphenea to develop high
quality graphene for international markets.
Research laboratories in Spain are developing advanced products for electronic
applications used by multinational companies like TOSHIBA.
Nanomaterials and Graphene

5. Business opportunities: Agro-food
132
Investing in Agro-food

133
Basic data on the food industry
Sector
Net sales
(million €)
People
employed
Meat industry 19,499 101,306
Fish processing 4,107 22,622
Fruit and vegetable processing 7,155 39,056
Manufacture of fats and oils 8,427 14,716
Dairy industry 8,322 31,874
Milling products 3,323 7,896
Animal feed products 8,984 15,673
Bread, cakes and biscuits 6,630 96,075
Sugar, chocolate and cocoa 4,788 25,000
Other products 4,827 28,486
Production of alcoholic beverages 9,586 41,548
Mineral water and soft drinks 4,519 15,508
Total 90,169 439,760
Source: Mercasa 2014. FIAB 2014 (2013 Data)
The agrifood sector’s foreign trade in 2014* had a positive
balance:
Food exports value rose to € 37,189 million:
• Fruit and vegetables € 14,333 million
• Meat € 5,109 million
• Fish and seafood € 2,933 million
• Drinks € 3,606 million
Food imports value amounted to € 28,363 million.
Mainly, Spain sold abroad its citrus, its sweet fruits, its
vegetables, its wines and its oils, but also its fish products,
processed meats and many other agrifood products.
Spanish agri-food sector accounts for 90,169 million €
(2013 data) which represents 17% of industrial GDP
Main market for Spanish exports of agrifood products has always been Europe, but since Spain joined the
European Union (EU) that relationship has intensified significantly.
* Estimated data. DataComex

134
Olive oil
Spain is the world's leading producer and exporter of olive oil and table olives, with
the largest acreage devoted to olive groves and the greatest number of olive trees.
World olive oil production
(Thousands Tons)
2012/13 2013/14*
World 2,718 3,098
EU 1,739 2.308
Spain 613 1,768
*EstimateSource: Mercasa 2014
Wine
Spain ranks 1st in the world in wine production and has the
largest surface area of wine grape vineyards in the world.
Main clients for Spanish wines are Germany, France and UK,
followed by Portugal, Russia, United States and Italy.
Spanish wines exports have increased by 6.5% in value.
Spanish Wine and Grape Must
Production 53.5 million hectolitres (2013*)
Exports 18.5 million hectolitres (total value: € 2,628 million)
*Estimate Source: MAGRAMA. MERCASA 2014

135
Subsector Production (th Tn)
Bovine 582
Ovine 119
Goat 9
Porcine 3,440
Poultry 1,370
Rabbit 63
Others 6
Total 5,588
Fuente: MERCASA 2014
•In 2013 there was an overall
improvement of the livestock and
meat produced in prices.
•Exports in 2014 were valued at
€ 5,109 million
Meat
industry
• The Spanish catches reached the 813,200 tons
with an estimated value of 1,785 million Euros.
• The aquaculture production reached 266,700
tones with a value of € 436 million.
• Exports in 2014 were valued at € 2,933 million
Fish
processing

136
Fruit &
Vegetables
•Spain is the second largest fruit and vegetable
producer in Europe.
•The value of Spanish fruit and vegetables
amounted to € 15,389 th in 2013.
•Production in Spain reaches 30 million Tn and
exports in 2014* were valued at € 14,333 million
•The main crop is the tomato
•The value generated by this sector in 2013 amounted
€ 2,765 million.
•75% corresponds to cow's milk
•14% corresponds to sheep’s milk
•12% corresponds to goat’s milk
•Exports in 2014* were valued at €1,400 million
Dairy
products

137
Shuanghui Group, acquired through the US company Smithfield,
the Spanish company Campofrio.
Chinese multinational company has paid 7,100 million for
Smithfield.
Campofrio, which owns brands such as Navidul, Oscar Mayer and
Revilla, is one of the largest food companies in Spain.
It has 29 production plants in six European countries and more
than 8,000 workers.
The Spanish Ministry of Agriculture, Food and Environment has signed
a cooperation agreement with China's Wahaha, to boost the marketing
of Spanish food products in major cities of China.
Success stories

5. Business opportunities: Real Estate
138
Investing in Real Estate

139
REAL ESTATE: Professionals
INVESTMENT VOLUMEN BY TYPE OF ASSET
Source: BNP Paribas Real Estate, Research Spain.
2013
Spain’s Terciary Real Estate Investment reached € 7,500 Millions in 2014, what it is an
increase of more than 97% between 2013 and 2014.
43%
22%
18%
15%
3%
Retail Others Office Hotel Logistics
32%
34%
8%
15%
11%
Offices Retail Logistics Hotel Others
2014

140
Residential
NEW DWELLING STOCK
(% by Region, 2013)
Source: Bank of Spain, 2015.
664.923
34.580
579.665
43.320
-
100.000
200.000
300.000
400.000
500.000
600.000
700.000
2005 2006 2007 2008 2009 2010 2011 2012
New Dwelling Started New Dwelling Finished
DWELLINGS TRANSACTIONS (units)
413.393
439.591
359.824
318.534 312.593 319.389
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
450.000
500.000
2009 2010 2011 2012 2013 2014
Source: National Institute of Statistics, 2015.

141
Residential
Source: Ministry of Public Works, 2015.
Nominal Housing Price Adjustment Since Peak in
Each Province (%)
National average may not be noteworthy as housing market requires
regional analysis. Nominal price adjustment of residential real estate has
been very heterogeneous between regions.
Higher discounts have taken place in the Mediterranean Coast, in some of
the Canary Islands and in Madrid´s outskirts.

142
Source: Ministry of Public Works, 2015.
FOREIGNERS’ HOME ACQUISTIONS
STILL DEMAND FOR HOLIDAY HOMES?
INCREASING FOREIGN INVESTMENT
After dropping 35% in 2009, the acquisition by residents and non residents rose during
the last five years.
Residential
4,24% 4,45%
6,04%
8,12%
11,15%
13,01%
0%
2%
4%
6%
8%
10%
12%
14%
2009 2010 2011 2012 2013 2014

5. Business opportunities: Tourism
143
Investing in Tourism

Spain, a Major Player in Tourism
144
Tourism accounts for 10.9% of GDP in Spain
Generates 11.9% of total employment (about 2 million jobs)
Covers 174% of the Spanish trade deficit (Bank of Spain, 2014)
Receive more than 65 million tourists (2014) (IET/Tourspain 2014)
Travel & Tourism Competitiveness Index top 10
Country 2015 2013
Spain 1 4
France 2 7
Germany 3 2
United States 4 6
U.K 5 5
Switzerland 6 1
Australia 7 -
Italy 8 -
Japan 9 -
Canada 10 8
Source: The Travel & Tourism Competitiveness Report 2015, World Economic Forum (WEF)

40.3% of our tourists have visited Spain ten or more times in their lifetimes
82% are repeat visitors
145
2nd country in the world in terms of UNESCO World Heritage Sites
(42 sites).
2nd country in Europe in natural areas (14 national parks, 126
nature reserves) and natural spaces declared UNESCO Biosphere
Reserves (42, behind only the United States with 47).
2nd country, behind USA, in receiving foreign golf tourists, with 431
courses and 884,848 tourists in 2011.
648 Spain Blue Flags Eco-Label Record (2013): Beaches Spain
(551), Greece (393), Turky(383), France (365) and Portugal (280).
More than 120 spa resorts in mid or high mountain locations.
More than 300 days of sunshine a year and more than 2,000 km of
Green Tracks.

Business opportunities
146
HEALTH & WELLNESS
TOURISM
THEMED & LEISURE
PARCS
SMART
TOURISM
CRUISES
VACATION
CLUBS
CULTURAL
TOURISM
SPORTS
TOURISM
MICE
GASTRONOMIC
TOURISM RELIGIOUST
OURISM
NATURE
TOURISM
SUN
TOURISM
LEISURE
TOURISM
URBAN
TOURISM
INTERIOR
TOURISM
Continued expansion and diversification
Increasing number of destinations have opened
up to and invested in tourism
SHOPPING
TOURISM

5. Business opportunities: Natural Resources
147
Investing in Natural Resources

Spain your partner in europe

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