The past 30 years have seen Britain’s love affair with Spain blossom, as cheap package holidays have given us a taste for sun, sea and sangria.
While the laid-back lifestyle has inspired around 500,000 Brits to move there permanently, 13 million tourists from the UK visit each year.
Gaudi architecture in Barcelona
Since Spain joined the EU way back in 1986, its economy has developed substantially and growth in Anglo-Spanish trade has been dramatic.
The second largest country in Western Europe with a market of 40 million people, Spain welcomes overseas companies and holds up no major restrictions in setting up business.
British companies have traditionally manufactured products there in a number of different industries, including food, chemicals and automotive components.
In recent years investments have greatly diversified, with a strong British presence in the retail, invisibles and service sectors – especially consultants, project managers, lawyers and estate agents (Britain is the second largest overseas investor in property in Spain).
Economic growth is high
Economic growth in Spain is higher than the European average and is forecast to continue. Consumer expectations and demand have been raised by increased standards of living, making Spain a lucrative location for overseas companies to set up their own operations.
Being among the first wave of countries to join the EMU, Spain remains the largest beneficiary of EU structural and cohesion funds, which have allowed the Government to embark on major infrastructure projects offering overseas firms the chance to work with Spanish companies.
New investment opportunities are also being created in sectors such as energy, telecommunications and utilities due to deregulation and liberalisation in the market.
Spain is also linguistically and historically a vital gateway to Latin America and many Spanish companies are actively involved there, offering opportunities for British firms to focus on Latin America in partnership with them.
There are numerous ways in which British companies can approach the Spanish market but it is essential to have a local representative to establish personal contact.
British companies who want to export direct to Spain usually appoint an agent who knows the market and is well connected.
It is also possible to hire a Spanish ‘Gestor’ whose role is particular to Spain. Though not a lawyer as such, he or she can carry out most of the usual bureaucratic procedures and paperwork for you for a reasonable fee, based on their superior knowledge of the Spanish system.
Businesses entering into larger investments can go into joint venture partnerships or set up owned, or partly owned, subsidiaries.
Different regulations govern the various categories into which your venture may fall and British businesses are advised to research the market thoroughly and gain professional legal, financial and taxation advice before embarking.
Companies can consult the commercial sections of the British Embassy in Madrid and the Consulates in Barcelona, Bilbao and Malaga for strategic market advice.
Working hours are different
It is worth noting that the normal business hours in Spain differ from the UK’s working day. Retail or industrial premises generally start work at eight, stopping between one and four and then continuing until about six.
Offices tend to open later than in the UK and often stay open until eight in the evening, with a long lunch break between two and four in the afternoon.
From June to September most offices operate on ‘summer time’, starting at half-past-eight in the morning and closing at three in the afternoon.
Spanish business etiquette also requires a great deal of entertaining and eating out (no sandwiches on the hop here!) and lunch and dinner are taken much later than in the UK.
