Business in Spain

Spain in business ratings

In October, 2013 the World Bank updated the rating of the countries favorable for business (Doing Business - 2014), having lowered Spain on the 52nd place in the list from 189 countries.

In January, 2014 the Bloomberg agency published the rating of the best countries for business – Best Countries for Business 2014. Spain takes in it the ninth place from 157, Russia – the 43rd^[1].

Top ten looks so: Hong Kong, Canada, USA, Singapore, Australia, Germany, Great Britain, Netherlands, Spain, Sweden.

In comparison with the rating of 2013, this time Spain made considerable break, having risen from the 16th place by the ninth (Russia added 13 positions). Spain gained 77 points from 100 possible (Russia – 61.6).

On extent of economic integration the country gained 94.9 points (the Russian Federation – 78). On new business costs – 78.2 points (Russia - 67.2). On availability of labor power and production materials – 67.9 points (68.4 in the Russian Federation). On costs for transportation and logistics services, the level of development of an infrastrukttsra – 81.3 points (61.9 in Russia). By criterion "other" costs which means taxes, inflation and rollbacks Spain gained 76 points (Russia – only 39.3). By criterion "a status of local market" Spain gained 68.5 points (Russia – 64.7).

The new rating was already commented by the Russian Prime Minister Dmitry Medvedev. "We climbed the rating of the best states for business according to Bloomberg. The place yet not strongly outstanding, but after all from 100 possible places we took the 43rd place. So, I hope, in it there is also our small, modest contribution in promotion of a position of Russia in such assessment", - the Russian news agencies quote the head of the government.

Number of the new enterprises

For 2012 in Spain 78.853 new enterprises were registered.

In 2013 in Spain 86.144 new enterprises were registered that is 9.27% more, than the previous year. Analysts of the AVS edition believe that these digits are one of evidence of the begun economic recovery of the country^[2].

Only in December, 2013 in the Pyrenean kingdom 7.126 new companies were created that for 17.41% exceeds result of the last month 2012.

The sector of commerce is mentioned by the greatest positive dynamics – in 2013 14.466 firms appeared here (39.9% more, than a year before). The number of the intermediary companies grew by 23.46%, the third indicator – at real estate agencies (a gain – 17.1%).

The activity even increased in the most affected sphere from crisis – construction – the result of 2013 (3.134 new enterprises) exceeds digits previous for 7.14%.

The greatest entrepreneurial activity is recorded in provinces Madrid (18.934 again founded firms – 12.5% more, than in 2012) and Barcelona (respectively 13.593 and 14.73%). Further follow: Valencia (4.560 and 4.32%), Alicante (4.450 and 6%), Malaga (4.386 and 14.85%).

Branches of the economy

• Banks of Spain
• The real estate market in Spain
• Agriculture of Spain, including winemaking
• Cars in Spain
• Tourism in Spain
• Hotel business in Spain (bars, restaurants, hotels)
• IT companies of Spain
• The industry of video games in Spain

Airports

For 2013 the Spanish airports accepted 187.36 million passengers from whom 129 million were foreigners. On number of foreigners the airports of Spain broke own record, however the total number of passengers decreased by 7 million people in comparison with an indicator of 2012^[3].

Fishing industry

In 2014 Spain exported 157 thousand tons of fish canned food and seafood. It is more, than any other country of Europe, note in National association of producers of fish canned food and mollusks. 67% of all export are the share of a tinned tuna. On squids and cuttlefishes - another 16%. 25 thousand workers^[4] are engaged in fishing industry in Spain].

Spanish business abroad

During 2013 the Spanish companies signed 823 contracts outside the country, reported Head department on international trade and investments of the Ministry of Finance. The total amount of means which the Spanish enterprises can receive, having fulfilled the undertaken obligations, will make 45 billion euros^[5].

In 2012 the firms registered in Spain were concluded on 118 contracts for work outside the country more. Total amount of income on them was 5 billion higher. This disproportion, writes with AVS, "sources in the government of the country are explained with the fact that in 2013 it was not recorded any especially large agreements, such as the agreement on construction of the high-speed railroad Mecca-Medina in Saudi Arabia" (the question price – €7 billion).

From the geographical point of view in 2013 for the Spanish companies the Latin American region was priority – 33% of all their business activity were the share of it, further follow: the territory of the European Union - 23%, the Middle East and a zone of the Persian Gulf – 17%.

Shadow business

According to National federation of associations of individual entrepreneurs (ATA, January, 2014), in every fourth case economic activity in Spain is performed in the shadow mode and therefore from it taxes and contributions to the system of social insurance are not paid.

Its head Lorenzo Amor assured of the official statement of the organization that about one million firms work in shadow economy that leads to the illegal competition and "excessive efforts" from outside more than 3 million individual entrepreneurs who observe tax regime.

The organization offers three ways of a way out which, according to her representatives, once the government considers by preparation of the future tax reform.

The first of them consists in reduction in taxes up to 15% instead of present 21% for individual entrepreneurs whose annual income is less than 12 thousand euros. The second way means introduction of tax deductions for families for expenses on health care, education or recovery of housing. This measure will lead to the fact that families will use more often services of the professionals paying contributions to treasury and the system of social insurance.

At last, as the third measure ATA suggests to set the minimum tiered rate for individual entrepreneurs whose net profit in a year is 8 thousand euros and less.

Amor specified that "the shadow economy grows in that case when from monthly income in 1000 euros it is necessary to pay a tax in the amount of 210 euros and contribution to the system of social insurance in the amount of 270 euros. In this case there is a net amount in 520 euros which lower than a minimum wage", - the expert concluded.

See Also

• Spain
• Economy of Spain

Notes