Repsol is postponing investments in Spain until 2025 due to instability - 8 billion euros.

The CEO of Repsol, Josu Jon Imaz, announced on Thursday that his company intends to seek "alternatives" for its investments in Spain "if there is no political stability." The Spaniard warned that he would make such a decision, especially if the "energy tax reform" and the tax on banks are extended. This could lead to the redirection of around 8 billion euros to other countries by 2025.

According to the strategic plan for 2021-2025, presented two years ago, the multi-energy group planned to allocate 19.3 billion euros for global investments. Although the investments are not specified by country, considering that 41% of the investments in 2023 are concentrated in Spain, this amount will reach 8 billion. To this end, the company aimed to increase the production of renewable electricity and zero-emission hydrogen. It also wanted to support other low-carbon initiatives in our country.

However, as Imas himself stated on Thursday, the company suffers from being one of the companies in the IBEX 35 index that pays the most taxes in Spain up to September. In fact, out of the total tax contribution it has made worldwide, about 70% (7.441 billion euros) was paid in Spain. "It is clear that if the special tax on energy and banks is planned to be maintained after 2023, we will take appropriate measures. Repsol is the company in this sector that will be most affected, with the amount being around 450 million euros this year."

Banks and the energy sector are also concerned about tax hits. Similar to the case with energy companies, the agreement between PSOE and Sumar includes a permanent special tax on banks. Santander's CEO, Hector Grisi, warned about the damage this tax could cause. According to him, the tax could affect the provision of loans during less favorable times for the sector. "There are cycles, and we are currently in a good cycle, and the tax may or may not have an impact.

Since the initiatives of PSOE and Sumar became known, many entrepreneurs and professional associations have warned that this puts the competitiveness of Spanish companies at risk. And that it could open the door for some of them to stop using Spain as their base. This is what happened with Ferrovial. In April of last year, the company's shareholders approved the relocation of its legal address to the Netherlands. Although the multinational corporation argued that the move was necessary for full trading in the American market, the shadow of a favorable tax system always loomed over this operation.

Possible direction: Portugal

During the criticism of the "energy tax reform," José Juan Imas also mentioned Portugal as a country where his industrial business could have international activity. But why Portugal? Portugal offers tax incentives and financial support to large companies, especially industrial enterprises that are located within its territory. And that's not all: it also provides them with facilities and management. This is an experience that was adopted three years ago by Siemens Gamesa, which closed part of its industrial business for wind blade manufacturing in Spain and moved it to Vagos, in northern Portugal.