Economic Overview & Business Opportunities
ADAM Spain office specializes in four main legal fields: (1) foreign investments, (2) International and corporate work in general; (3) Environmental Law; and (4) Industrial and Intellectual Property Law.
With regard to foreign investments the firm handles mergers and acquisitions, negotiations of joint venture agreements and the creation and establishment of branches, affiliates or subsidiaries of foreign companies in different business areas. As a result of our corporate activities, we have developed a consistent real estate practice.
The activities of our main clients have allowed us to gain material expertise in key areas such as timesharing, telecommunications, the pharmaceutical industry, hazardous waste treatment and disposal, the automobile and chemical industries.
Our Latin-American background and contacts give us excellent opportunities to act as a link between investors in Spain and Latin-American countries.
We have been in business of intellectual property since 1921 that is dedicated exclusively to the protection and registration of various types of industrial property Spanish companies both in Spain and abroad, as foreign clients in Spain; has a team of officials authorized to work both at the Spanish Patent and Trademark Office and before the European Patent Office and the Trademark and Community Design and a multidisciplinary team of engineers, translators and lawyers that cover the needs of companies in this area. Currently have Spanish operational offices in Madrid, Barcelona and Marbella.
As European patent agents, We are qualified to direct European patent applications and to validate both in Spain as European Patent PCT patents (for this team within the company are specialists in technical translations).
As agents and International CTM can submit applications for EU and international trademarks and designs and international community.
ABOUT SPAIN AND ITS ECONOMY
Located at the crossroads of the Atlantic and the Mediterranean, Europe and Africa, Spain’s history and culture are made up of a rich mix of diverse elements.
Spain’s modern history is marked by the bitterly fought Spanish Civil War of 1936-39, and the ensuing 36-year dictatorship of General Francisco Franco.
After Franco’s death in 1975, Spain made the transition to a democratic state and built a successful economy, with King Juan Carlos as head of state.
The constitution of 1978 enshrines respect for linguistic and cultural diversity within a united Spain. The country is divided into 17 regions (having their own directly elected authorities) and two Autonomous Cities (Ceuta and Melilla). The level of autonomy afforded to each region is far from uniform. For example, Catalonia, the Basque Country and Galicia have special status with their own language and other rights.
Spain’s economy was one of the most dynamic in the European Union until the economic crisis hit in 2008
Spain also has a history of continuing contributions to multilateral welfare and peacekeeping initiatives, including peace missions in Afghanistan and Africa. Spain claims sovereignty over the British overseas territory of Gibraltar
One of Spain’s most serious domestic issues, that is, the tension in the northern Basque region are coming to an end, while the country has been experiencing years of peace that have helped to boost the economy and social development of the Basque Country.
Until 2008, the Spanish economy was regarded as one of the most dynamic within the EU. However, the mainstays of the economy were tourism and a booming housing market and construction industry, and so the global economic crisis of 2008-9 hit the country hard. The bursting of the housing bubble that tipped Spain into a severe recession are on the verge of being overcome and economic prospects for 2014 are encouraging.
Spain is friendly to foreign investments and will continue to be in the future, currently featuring one of the most flexible and favorable legal regimes for foreign investments in Europe. Real estate and specific high tech business areas are attractive fields for foreign companies and individuals to develop profitable activities based on a clear and favorable legal regime. Level of taxation is in the high third of Europe, but profits can be maximized through expert Fiscal and Legal advice.
Spain is a significant world cultural center. From Velazquez in the seventeenth century, through Goya straddling the eighteenth and nineteenth, to Picasso in the twentieth, Spain has the proudest of traditions in art. Madrid currently features what in some circles is known as the “Golden Mile of Painting!”, by reference to the circular distance between the Prado Museum, the Thyssen Collection and the Queen Sofía Museum. In addition, other top class painters such as Joaquín Sorolla are becoming well known worldwide.
CURRENT INVESTMENT AND BUSINESS OPPORTUNITIES AT DECEMBER 2014
• Promotion of new entrepreneurship.
• Spain has decided to focus on the main factor identified by the Organisation for Economic Co-operation and Development (OECD) to encourage the creation of new businesses by developing the institutional and regulatory environment of Spain as host State.
• The popularly known as “Law for the Entrepreneur” came into effect on Monday September 30, 2013.
• The main features of this new Law, aimed at helping the new entrepreneurs (or SMEs), are:
1.- Residence visa for foreign investors in Spain
• New foreign investors who want to reside in Spain will now have certain facilities to obtain their visa. Who qualifies as a foreign investor under the new rules? Whoever meets any of the following conditions:
– Buying a property in Spain, free of charges or encumbrances for not less than €500,000; or
– Developing a business plan of national interest (creating jobs in Spain, for example); or
– Investing € 2 million or more in Spanish public debt or shares of Spanish companies
2.- Main advantages for other investors
• The Law grants certain advantages to the New Entrepreneurs. For example:
– “Limited Liability Entrepreneur”: The main dwelling of individuals (natural persons) may – under certain conditions – be exempt from liability resulting from debts originated by their professional or corporate activities . i.e., the company having met the obligation of submitting the annual accounts for deposit at the Mercantile Register.
– Reduction in Social Security Contributions. The Law also helps new entrepreneurs by reducing the rate of Social Security payments from 80% to 30% during the first year and a half.
– “Cash approach” tax system: Self-employed individuals and SMEs may qualify to pay VAT on a cash rather than an accrual basis.
– “Successive Formation” of Limited Liability Companies:
• Brand new feature, allowing to create companies with no minimum share capital subject to certain conditions with regard to the appropriations to the legal reserve and the distribution of dividends and other payments to shareholders. Otherwise, similar to the regular Limited Liability Company.
• Out of court payment settlement: Through an amendment to the Insolvency Law in order to allow insolvency proceedings to continue even if no agreement with creditors or the otherwise required “feasibility plan” have been reached.
– “Points of Consumer Support”: Facilitating the start up, development or termination of business activities, either by physical presence or online)
– “Business angels”: Investors helping the new SMEs will benefit of certain deductions in the Personal Income Tax (“IRPF”).