With the aim of promoting investment, employment, competitiveness and economic growth, the Spanish State and all other public authorities have been developing and consolidating an extensive and complete system of aid instruments and incentives especially targeted at boosting indefinite-term employment, regional investment and at research, development and technological innovation (R&D&I).
Furthermore, since Spain is an EU Member State, potential investors are able to access European aid programs, which provide further incentives for investing in Spain.
These investment aid measures can be classified as follows:
- State incentives for training and employment.
- State incentives for specific industrial sectors.
- Incentives for investments in certain regions.
- State incentives for innovative SMEs.
- Preferred financing from the Official Credit Institute (Instituto de Crédito Oficial or ICO).
- Incentives for internationalization.
- EU aid.
Most of the aid that can be obtained from the various agencies depends largely on the specific characteristics of each investment project (i.e. the better the prospects of the project, the more possibilities there are of obtaining financing and aid).
Furthermore, the ICEX-Invest in Spain website (www.investinspain.org)
offers a search engine for public aid and subsidies granted in Spain. Using this tool, companies can gain easy access to updated information regarding the grants available for their investment projects. Also, this same tool now includes an automatic alert system for aid and subsidies tailor-made to each user.
Notwithstanding the tax incentives discussed in other chapters (the main tax incentives analyzed in Chapter 3 are investment tax credits (for further information go to Chapter 3, section 2), the main State incentives for investors are described on the following pages.