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What is the best business to invest in Spain?

By 17 September, 2021 June 20th, 2023 No Comments

Investors recognize Spain as one of the European countries that offers more investment opportunities in different sectors of activity. This is due to its strategic location, Castilla-La Mancha being the country’s industrial epicenter, which acts as a link between Latin America, North Africa and the European Union; its membership in the common European market; as well as its first-class economic, industrial, commercial and urban infrastructures. In addition, investors also rate the high level of legal security that Spain offers and its high standard of living very positively, being one of the most appreciated countries in the world by expats.

Despite the situation we are currently experiencing derived from the COVID-19 pandemic, Spain remains a leading country in Europe to invest in different sectors or companies that offer interesting opportunities for foreign investors.

Foreign investment has increased in recent years and has been a decisive and essential factor in the development of the economy of the country.

Nearby countries such as Italy, France, or Germany are the main markets that are committed to doing business (or expanding existing ones) in our country, to the creation of employment and wealth, the internationalization of the Spanish economy and the consolidation of the “Marca España”.

Some of the most relevant sectors in which you can invest in Spain are metalworking, renewable energies, real estate, and logistics.

Castilla-La Mancha as a premium investment area

Among the advantages that Castilla-La Mancha offers over its competitors are its central peninsular location, the available industrial land, solid support from public administrations, modern infrastructures and communication networks, and great security, ranking first in the index of business confidence in Spain.

Invest in the metalworking sector in Spain

This sector is a mainstay in the country’s production chain, as it contributes significantly to technological and industrial development.

It is also a key element in the development of strategic projects and a major employment generator, as it requires different profiles in its production chain, such as operators, mechanics, technicians, welders, electricians and engineers.

For Castilla-La Mancha it is a strategic sector for the economic growth of the region, generating machinery or tools for other sectors such as agriculture, textiles, or the ceramic sector, among others.

In addition, the region has ITECAM, the Castilla-La Mancha Metal Technology Center, constituted as a regional cluster to promote innovation and boost competitiveness in the industries of the metalworking sector, such as those dedicated to transformation, processing, and development of equipment, machinery, and systems with metallic and related materials.

Invest in renewable energy in Spain

Renewable energy now offers high profitability. In recent years, the sector has matured significantly, production capacities have improved and costs have gradually decreased.

Investments in Spain in this sector today generate confidence due to the energy transition policies and the objectives set by the European Union that favor clean energies.

The Spanish Government is also making great efforts to promote the use of renewable energy and encourage future investors to take a chance on it by granting investment subsidies that will strengthen the growth of this sector and raise awareness of environmental issues.

Castilla-La Mancha has its own unique characteristics that make it an attractive area for investment in the production of clean and alternative energies.

The region is in the lead in installed photovoltaic technology, ranks second in solar thermal energy, and third in wind energy. Furthermore, 73% of the total installed energy comes from renewable sources.

Invest in the real estate sector in Spain

The real estate sector plays a fundamental role in our country’s economy because of the high level of investment it attracts and the many jobs it creates, helping to increase the national GDP.

The advantages that support Spain as an attractive country for real estate investment are the following:

  • Low-interest rates. Interest rates have decreased over the years, which is beneficial for administrations, businessmen and individuals.
  • Growth trends in the sector. According to the international consulting firm JLL, the volume of real estate investment will grow by 15% in 2021.
  • Logistics and residential investment. Certain segments within the sector are becoming attractive players for investment. For example, the logistics sector or rental housing.

In addition to the above-mentioned available land in Castilla-La Mancha, there are numerous advantages that the region offers to new investors who choose it as an investment area, such as the support policies and incentives developed by the regional government for entrepreneurs and investors.

Invest in logistics in Spain

The logistics sector is one of the great beneficiaries of the rise and growth of e-commerce and the constant need for warehousing. Spain is an ideal place for investment due to its large supply of industrial land.

Among the advantages of our country as a location for investment in logistics is its strategic location, being a gateway to other continents and markets such as Africa or Latin America and a link to promote trade relations.

International investors see logistics warehouses in Spain as a profitable business model. They use them not only for the logistics market, but also as a real estate opportunity, as there is the possibility of renting or selling these warehouses, achieving profitability figures of around 6%.

Spain is a constantly growing market and one of the strongest in Europe. It is expected that the figures of the sector in our country will increase by leaps and bounds in the coming years and that logistics facilities will continue to be a business opportunity in the real estate sector.

Furthermore, the main national and international logistics operators are present in Castilla – La Mancha due to the opportunities offered by its excellent location and infrastructure.

Castilla-La Mancha is a very interesting destination for distribution operators, logistics companies, and logistics platforms related to e-commerce due to its competitive price and its location, bordering the Community of Madrid, the largest consumption center in Spain.

Castilla-La Mancha, main investment area in Spain

Castilla-La Mancha represents a potential to be exploited in different sectors, including logistics, real estate and renewable energies, among others.

The region offers potential investors a series of advantages, such as regional government support, different economic incentives and modern competitive infrastructures that allow the movement of people and goods, connecting Castilla-La Mancha with the country’s main markets.