CDMX – TYT – Spain’s Foreign Direct Investment (FDI) in Mexico registered a 62% inter-annual drop in 2022, when López Obrador called for a re-evaluation of foreign investments in Mexico. This came as a surprise to many, as Spain has been a major investor in Mexico’s economy.
In order to stimulate investment, Spain will launch a second, more flexible PERTE allowing investments until 2028, and a parallel simpler aid scheme, Industry Minister Reyes Maroto announced in late 2021. The second PERTE will be an improved version of the first, providing more flexibility and greater support to Spanish business.
The European Commission recently evaluated Spain’s third payment request and found that Spain is making progress on investments, with milestones and targets that are in line with the objectives of the European Union. The Commission also noted that Spain’s investment rate remains below the European average, at 2.4% of GDP in 2022, compared to 3.2% for the European Union as a whole.
The elephant in the room in Tarragona, in Spain’s northeast Catalonia region, is the issue of investment in Spanish football clubs. Some have argued that investment in infrastructure and players is essential to the survival of Spanish football, while others have argued that it would only lead to greater debt and instability.
The Spanish left-wing political party, Más País, wants to scrap the country’s Residence by Investment scheme for foreigners who invest in the country. Más País argues that the scheme does not benefit the country in any way, and has called on the government to eliminate it.
In a similar vein, the Spanish left-wing political party Más País wants to eliminate the country’s Residence by Investment scheme for foreigners due to its potential to lead to tax avoidance. Más País argues that the scheme only benefit wealthy investors and does nothing to help the country’s economy.
Despite the decrease in foreign direct investment, Brexit has not affected British investments in Spain. Since British citizens voted to leave the European Union in June 2016, investments from the UK have remained steady. This is due in part to the fact that the UK is still part of the European Union’s single market, meaning that investments from the UK are still subject to the same regulations as investments from other EU countries.
Advantage Investment, the UK’s off-plan property investment specialists, has teamed up with Spanish real estate company, First Choice Spain. The partnership will give Advantage Investment clients access to a range of Spanish real estate opportunities, from apartments and villas to commercial and industrial properties.
As the UAE continues to strengthen ties with Spain, the two countries have signed a number of agreements to facilitate investment. The UAE’s total investments in Spain reached approximately US$3.8 billion by the end of 2021 while Spanish foreign direct investment (FDI) in the UAE has grown to around US$2.5 billion.
The Spanish government is also looking to attract more foreign investment with a “golden visa” program. The program offers a residence permit to investors who invest a certain amount in the economy. The golden visa has been credited with attracting more foreign capital to the country, although critics have raised concerns about the potential for money laundering.
In addition to foreign direct investment, the Spanish government has also launched a number of initiatives to encourage domestic investment. These include the creation of a new venture capital fund, the “Fundación Emprendedores”, which provides funding for start-ups, and a range of tax incentives for investors.
The Spanish government is also making it easier for companies to access financing. The government has introduced a number of measures to help companies access credit, such as the “Growth and Credit Line”, which provides capital to companies with promising business plans.
The government has also implemented a range of tax incentives to encourage investment. These include a reduced corporate tax rate for companies with a turnover of less than €2 million, and a reduction in the capital gains tax rate for investments in small and medium-sized enterprises.
In conclusion, Spain is taking steps to attract more foreign investment, while also providing incentives to encourage domestic investment. The government is hoping that this will lead to increased economic growth and job creation in the country.