Spain has a modern diversified financial system which is competitive and fully integrated with the international financial markets.
In Spain, as well as in the European Union, the deregulation of capital movements is complete, which enables the Spanish companies to obtain financing from abroad, as well as it makes investment much easier for foreign companies in Spain.
The Spanish markets are endowed with great transparency, liquidity and efficacy.
Since 2007, the economic and financial slowdown had a great impact on Spanish stock markets, as well as in other economies. Currently, volatility on the stock markets has moderated, associated to the growth in advanced economies. Likewise, the policies undertaken to promote the competitiveness of the Spanish economy have represented big investment opportunities. Even if 2013 was a challenging year, at the end of the year 2014 the stabilization of the economy could be observed, helped by an increasing foreign investment, the increase of exports and the recovery of the equity markets. This tendency has continued and been reinforced throughout 2014, 2015 and 2016. At the 2016 year end, the recovery of the Spanish economy is on a sound footing and the imbalances present have been reduced. This trend is expected to continue in 2017, driven by positive figures for private consumption, foreign investment and tourism, with the International Monetary Fund forecasting overall growth of 2.3% in the Spanish economy.
As for the money market, this has become increasingly important as a result of the deregulation and greater flexibility of the Spanish financial system as a whole in the past few years, with a substantial volume of trading in money market instruments.
Lastly, more general and stronger protection for financial services customers has been provided. A stronger protection of the financial systems has also been provided through the regulation of obligations and procedures to prevent the use of said systems for money laundering and terrorist financing.
All these and other aspects of interest, such as the tax regime applicable to the main financial products available on the Spanish market are discussed in this chapter.