Restoration of the Spanish economy: new opportunities for investors and immigrants

Spanish economy: new challenges and opportunities

The end of the economic crisis that has been discussed over the past few years has become a reality, and this is not just the opinion of optimistic analysts. It is a fact supported by numerous independent studies.

For example, in 2015, Spain's gross domestic product (GDP) grew by 3.2%. Such figures are quite impressive for the economies of European Union countries, as even a 1.5% growth is considered a good result. The forecasts from the Spanish central bank for 2016 also predict a growth rate of 2.8%.

The situation with unemployment

Unemployment, which reached 27% during the toughest years of the crisis, is also showing positive changes. The rate of decline in this indicator is one of the highest within the European Union. In 2015, the unemployment rate fell from 23% to 20%.

Improvements in real estate

The real estate sector is also showing improvements.

• The number of real estate transactions exceeds 350,000.
• This is a record high since 2007.
• Every fifth real estate buyer in Spain is a foreigner.

Investment attractiveness of Spain

According to a study by CBRE conducted among 1,250 large international investors, Spain, along with Germany and the United Kingdom, ranks among the top positions in terms of attractiveness for real estate investment in 2016.

Despite a significant decrease in the flow of tourists from Russia, which fell by more than 41% in 2015, the hotel industry ended the year with a positive result (+6.8%). This created incentives for increased investment in hotel complexes and other tourism infrastructure facilities.

Additional positive changes

However, these are not all the positive changes:

• The construction market is showing growth.
• Interest rates on loans are decreasing.
• The volume of mortgage lending is increasing.
• The number of troubled assets held by banks is decreasing.

Housing prices and commercial real estate rentals, including office and retail spaces, continue to remain low: during the crisis, they dropped by 40-50%. The potential for growth has already started to show, especially in large cities, but attractive offers with a good price-quality ratio are still available.

Immigration for investors and entrepreneurs

Investment immigration has become more accessible for investors and entrepreneurs. Many are already familiar with the concept of "golden visas," which are granted to those who invest in real estate or securities. This is one of the simplest options for obtaining residency in Spain.

The success rate for obtaining a visa through investor programs is an impressive 99.9%.However, there is a significant drawback – the high minimum investment threshold, which is at least €500,000 for purchasing real estate. When it comes to bank deposits or investments in securities, the requirements become even more stringent.

Immigration program for entrepreneurs

As for the immigration program for entrepreneurs, there is no fixed minimum investment amount. You can apply for a residence permit even if you plan to start a small company that doesn't require large sums of money.

A key requirement is the need to demonstrate that your business will be beneficial to the Spanish economy, which necessitates the creation of a quality business plan that will deserve support and attention.

Immigration through business creation in Spain

Immigrating through starting your own business in Spain is an excellent solution for those who want to engage in entrepreneurial activities in this country. However, simply registering a company without the intention of developing it will not suffice. To extend your residence permit, you need to implement the business plan that was presented when obtaining residency. For useful information about real estate, investments, and immigration, you can check out our Telegram channel, which you should definitely subscribe to.

How to obtain a business residence permit: a step-by-step guide

1. Who can apply?

Currently, almost any adult person who does not have legal issues and has not previously been in Spain illegally can apply. The key point is the intention to develop a business that can benefit the local community.

2. What kind of business can be considered socially beneficial?

For your project to be recognized as socially beneficial, it must meet at least one of three main criteria, and preferably all of them at once:

• Job creationin Spain.
• Positive influenceon the social or economic environment of the region where your company will operate.
• Making an important contributionin technological or scientific innovations.

It is important to note that the legislation does not set clear requirements for the number of jobs created or the minimum charter capital. Each application is considered on a case-by-case basis.

Before submitting the documentation for a business visa, it would be helpful to first consult with the Trade and Economic Office of Spain located in your region. They will evaluate your business project, and if it is deemed significant, they will provide a positive opinion necessary for obtaining the visa and residence permit.

3. What should be included in a business plan?

In the documents that you are going to submit to the trade and economic representation, it is necessary to include the following information:

• Professional profile of the applicant.Describe your previous work experience, your level of involvement in the new company, and if there are any partners, provide information about them.
• Description of the future business.Please specify the type of activity you plan to engage in, the timeline for its start, the location of the company, the desired legal form, the number of jobs to be created, and the skills required for the work. You should also present a sales strategy and a marketing plan.
• Detailed description of the product or service.It should be detailed and include any innovative elements.
• Market target analysis.This will help justify the relevance of your proposal and identify competitive advantages.

Please note that thorough preparation of all these documents will significantly increase your chances of success in obtaining a residence permit through entrepreneurship in Spain. We hope this information proves useful to you and helps in your future endeavors!

Assessment of supply and demand

One of the key aspects of successfully launching a business in Spain is a comprehensive assessment of the anticipated demand and existing supply in your chosen field. It is important to conduct a thorough analysis of the competitive environment and target audience to gain a complete understanding of the market. Evaluate the potential economic impact of expanding your business and explore opportunities for growth in this area.

Financial schemes

The next step is to work out possible financing schemes.

Prospects for a successful business project in Spain

One of the key factors to consider when launching a business project in Spain is the high likelihood of its successful implementation. Miguel Martin, who heads the trade and economic department of the Spanish embassy in Moscow, shared his thoughts on the criteria for evaluating business plans and which initiatives have the best chances of approval. According to him,The amount of investment doesn't play a decisive role.It is much more important how the business will be in demand in the Spanish market.

Examples of successful projects

For example, one of the successful projects that received funding is a startup with a mobile app for travelers. The amount of investment requested in this case was not significant, but we found the proposal original and relevant for Spain, which determined its support. Recently, a project was also approved with the aim of creating entertainment zones with attractions, such as indoor skydiving at stadiums.

Workplaces and types of business

It's important to consider that the requirements for creating jobs vary and cannot be considered rigid. It all depends on the type of business you plan to open. For example, a small high-tech startup typically won't be able to offer a large number of vacancies, while the hospitality industry certainly requires significant human resources.

Business location

Another important factor is the location of the business. In general,Getting project approval in a small town is significantly easier.In such large megacities as Barcelona, the dynamic development and saturated market significantly complicate the approval process. Our goal is to stimulate investments in less popular areas, create new jobs, and increase market activity.

Education and chances of success

It is impossible not to mention the presence of high-quality business schools in Spain, located in cities like Madrid and Barcelona. If a foreigner graduates from one of these institutions with an MBA degree and decides to stay in the country to start their own business, it significantly increases the chances of a positive decision from our department.

Approval rate of projects

Every year, we review about twenty business projects. About60-65%Of these, some go through the approval stage. It should be noted that there are a number of projects that, after receiving permission from the Spanish Ministry of Economy, can be implemented even if the investor is already legally in the country for reasons unrelated to this project.

Resources for Entrepreneurs

For those planning to immigrate to Spain with the goal of starting their own business, the following resources may be helpful:

• The law "On Supporting Entrepreneurs and Their Internationalization," adopted on September 27, 2013.
• Department of Large Companies and Strategic Groups in the Ministry of Employment and Social Welfare.

These sources can serve as an important tool for successfully launching a business in Spain and its subsequent development.

Conclusion

The conclusion of the article about the new economic reality in Spain serves as a vivid reminder of how quickly circumstances can change and how opportunities for growth and development can arise in the midst of crises. I would like to highlight a few key points that I believe are important for understanding the current situation.

Economic recovery

First of all, the recovery of the Spanish economy is not just statistics, but a living embodiment of the efforts of many people and organizations who have not lost faith in their future. Looking at the indicated figures for GDP growth, the decrease in unemployment, and the increasing interest in real estate investments, I understand that the Spanish economy is once again opening up to opportunities and hopes, which is crucial for its stability and prosperity.

Immigration programs

Secondly, I am sure thatimmigration programsPrograms like "golden visas" attract investors and entrepreneurs who wish to contribute to the development of the country's economy. This not only creates new jobs but also fosters the exchange of knowledge and cultures, which in turn enriches Spanish society.

Positive trends

Contributing factors, such as the recovery of the real estate market and the increase in construction rates, indicate that Spain is on the path to regaining its former glory. However, it is important not to forget the challenges the country faces, including:

• The necessity of diversifying the economy
• Creating sustainable development models

Optimism for the future

Although we are still in the process of recovery, the current results inspire action and decisive steps forward. We need to actively develop entrepreneurship, implement innovations, and support initiatives that can strengthen the economic foundation and improve the quality of life for all citizens.

Spain is undoubtedly going through an interesting period of transformation, and I look to the future with optimism, confident that this country can overcome all challenges and take its rightful place on the global stage. I hope that each of us can contribute to this exciting journey towards development and prosperity.