Spain

Madrid – a city for investing

Spain has led economic growth in the European Union in the last two decades, joining the most advanced industrial economies. Its privileged geo-strategic position makes it the natural link between Europe, Africa and Latin America — with Madrid at its heart

Madrid Stock Exchange, the heart of Spain´s financial system. Aside from Spanish blue chips and small caps, 36 latin american companies trade in euros in the Latibex Stock Market

Spain has been a favourite destination for international investment among developed countries. The stable political and social setting provides a legal framework that encourages business. Wellqualified human resources — at lower cost than other European locations — and a friendly tax and regulatory environment make it one of the best options in Europe.

Madrid, Spain´s capital, is the third largest urban market in Europe, behind London and Paris. Most large Spanish companies have headquarters there. It also leads the R&D drive and the modernisation of the Spanish economy. No wonder that it has received over two thirds of foreign investment into Spain. Companies located in Madrid also lead the increasing flow of Spanish investment abroad.

A great place to invest

Madrid is a vibrant and dynamic European capital, open to the world and ready to sucessfully address the challenges and opportunities of the global economy. Well known for its cultural heritage and as a place to enjoy, the city also wants to improve its reputation for its technology drive and its infrastructure, as a good place to do business. Madrid wants to be one of the top global metropolises that generates the ideas that will shape the world in the 21st century. For its citizens, visitors and foreign business executives, it is an open and amicable social and economic space offering opportunities for many businesses and personal projects alike.

Bustling with economic, social and cultural life, Madrid represents the best of the Latin approach within the European model

Large and Growing Economy: Within Spain and Europe, Madrid and its surrounding region has been one of the most dynamic areas (4.0% growth in 2005), faster than Spain and almost double the EU average. The latest IMF projections for 2006-7 view Spain as the most dynamic large economy in Europe, growing only 0.1% slower than the US. Employment and industrial production also indicate the good performance of Madrid´s economy. Its vibrant services sector (80% of the total) includes a very wide range of services to businesses and consumers (financial services, IT and communications, transport, etc) as well as construction and real state. Industry still plays an important role with high-tech industries like pharmaceuticals, biotechnologies and aeronautics at the forefront.

The city and adjacent region are home to nearly six million people with a purchasing power of over €27,000 per capita, making it a large and expanding market which also serves as the best base for the rest of Spain, Portugal and beyond.

Human Resources: Along with a growing economy, Madrid has increased its population, thanks partly to the influx of citizens of more than 180 nationalities, which account for over 16% of its population, younger than most other European cities. Many of them are highly qualified. Over 20% of the active population holds a university degree. Madrid business schools (Instituto de Empresa, ESADE and IESE) are among the top 20 in the world, providing investors with some of the best managerial talent possible. High-quality human resources are available at salaries lower than in London, Paris, Amsterdam, Milan or Frankfurt.

Office and Industrial Space: The availability and moderate price of commercial, office and industrial space is another good reason to invest in Madrid. Office rental costs in the city and in surrounding areas are significantly lower than in London, Paris, Milan, Frankfurt, Brussels or Dublin. Industrial space in states or in science and high-tech parks is offered at moderate prices.

Excellent Infrastructures: Madrid also boasts a modern transport infrastructure. The International Olympic Committee ranked it ahead of Paris, London and New York in the comparison for the 2012 Olympic Candidacy. The city is at the centre of a radial network of toll-free motorways that span the country. It also has 170 km of ring-road motorways. The High Speed Network (AVE), the conventional train network, and the Metro System in Madrid guarantees excellent connectivity with the rest of Spain and as well as neighbouring countries.

Madrid-Barajas International Airport has the best connections between Europe and the Americas. Its new Terminal 4 has increased its capacity to 120 operations per hour making it the second-busiest airport in Europe, now able to carry 70 million passengers a year. The Air Cargo Centre at Madrid-Barajas Airport is Spain’s largest. Other significant infrastructures include Mercamadrid, the wholesale market, the “Puerto Seco” (largest inland customs centre in the European Union), the Madrid Transport Centre, and two big railway distribution centres. Logistics is one of the most relevant sectors of the local economy.

A Friendly Business Environment: The tax and legal environment is one of the most business-friendly in Europe. Regional authorities provide capital grants for investors under European rules. In addition, the city has been able to create a stable forum where public administration, businesses and social agents have agreed on the principal lines of action which impact on development and employment. Madrid provides investors with a friendly administrative, fiscal and political environment, while the population is involved in the project for the future of their city.

Spain’s Science and Technology Capital: The city leads science and technology in Spain, with an advanced regional innovation system hosting a network of world-class research groups in areas such as Nanotechnology, Genomics and Regenerative Medicine. Madrid is the Spanish city that has best adapted to the changes brought about by new technologies. A new large science and high-tech park is being promoted by the City Council in collaboration with the private sector and the region´s science and technological network.

A Great Cultural and Tourist City: Madrid is the fourth most visited city in Europe, and there has been significant growth in recent years in all segments of the market. Its main attractions include three of the best art galleries in the world: the Prado Museum, the Reina Sofía Museum and the Thyssen Bornemisza Museum. Some cities and towns around Madrid have been declared UNESCO Human Heritage sites (Segovia, Toledo or Ávila are within 100 km).

Madrid is well known as a business destination and a location for trade fairs (Ifema) and conferences. Facilities are first class and we have wide experience in organising all types of events from large international conferences or congresses to smaller company events. A very cosmopolitan city that can boast some of the greatest dining and entertainment, Madrid offers many options for all types of public entertainment, be it live music, a play or a show, a drink and a chat on an open-air terrace or dancing till the early hours in a trendy club.

Home to International Organisations: While it already hosts headquarters and country offices of some international organisations like the World Tourism Organization, Madrid wants to welcome more members of the international community and is making a renewed effort to attract international organisations by offering an attractive package.

The City Council Welcomes Investors: Madrid City Council is stepping up its support to foreign investors with the setting up of a new Foreign Investors Support Office within the Local Economic Development Agency Madrid Emprende. In addition to the many private consultants and advisors, this new office offers information on all aspects relevant to setting up business and some complimentary office space for investors interested in locating in the city.

City Marketing documents have been published to make Madrid advantages known to international investors. You can view them on our web page or ask us to send you copies.

Contact details:
Madrid Emprende, Gran Vía, 24 28013 Madrid Tel: +34 91 4804772 Fax: +34 91 5888341- E-mail: internacionalización@munimadrid.es Website:www.esmadrid.es/negocio

 

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