“Resilient” best describes the 5th largest country in the European Union (by population), with the OECD forecasting robust growth over the next two years.
Following its entry into the European Union (then EEC) in 1986 and the adoption of the euro, Spain became one of the world’s leading destinations for foreign direct investment. In fact, its economy grew an average 0.9 percent every quarter between 1994 and 2008, and it is now the fourth largest economy in the eurozone. The country has a strong and diverse manufacturing sector and is one of the most popular tourist destinations in the world.
In June 2015, the IMF boosted its forecast for Spain for the second time in three months. It is now expecting the country to expand by 3.1 per cent this year, steadily building on the economic growth that resumed in late 2013. Year-on-year, the GDP expanded 3.1 per cent in the second quarter of 2015, accelerating from a 2.7 per cent increase in the previous period, also matching forecasts. Meanwhile, the government has lifted its growth forecasts, with the economy expected to expand 3.3 per cent in 2015 and 3 per cent in 2016 from a previous 2.9 per cent estimate for both years.
Foreign direct investment has of course played a very important role in the nation’s recovery. Spain is a favourite for investors, ranking among the countries that receive the most FDI in the world, with investment increasing from EUR 3556 million in June 2014 to EUR 6536 million in July 2014.
To promote investment, employment, competitiveness and economic growth, Spain has developed a substantial system of support and incentives from which investors can benefit. Special focus is given to developing stable employment, research and development, and technological innovation, while its clout remains in the manufacturing, agricultural, service and tourism sectors.
The country is now experiencing a fast resurgence on the back of solid economic forecasts and relationships forged through its EU and NATO membership.
Our core areas of expertise
TMF Group Spain provides a one-stop shop for all of your compliance needs in Spain. We can help you with everything from setting up the most appropriate type of entity, to ongoing management, accounting, tax compliance, VAT refunds, corporate secretarial, payroll and HR services. We work from the top level right down to the basics of compliance, such as setting up compliance deadline schedules, exercising corporate health checks and helping your staff to be fully registered with the social security and labour authorities.
Whether you are starting out, enjoying business as usual or winding down, TMF Group's Spain offices can help you through your company's entire life cycle. Our in-country teams with local knowledge have the backing of a group with global reach, helping you to do business seamlessly across borders.