Spain's Sustainable Economy Law brings new opportunities!

12.01.2010 By: Invest in Spain

The Draft Bill for the Sustainable Economy Law has been drawn up as the cornerstone of the Government strategy to define the new growth model for the Spanish economy, based on innovation, technology, the internationalization of business, free competition and the efficiency of Public Administrations, to enable economic, social and environmental sustainability in the long term.

The text is formulated around three central themes: improvements to the economic environment, the promotion of competitiveness and the development of sectors working in fight against climate change. The new law will set up a program of reforms aimed at fostering sectors with a high growth potential in the long term and high value-added, which create jobs and are sustainable.

The measures adopted will affect national companies and economic agents, as well as foreign companies looking to set up in Spain, which will also benefit from measures such as:

  • The creation of the Sustainable Economy Fund, with provisions worth up to 20,000 million euros for the 2010 and 2011 fiscal years, 50% co-financed by financial institutions to finance private sector investment projects that make a contribution to innovation and technological development; to the expansion of Information and Communications Technologies; to the knowledge economy, to the internationalization of companies; to energy efficiency and savings; to sustainable transport; to conservation and environmental improvements; and to the development of social-health services.
  • The promotion of the capacity to innovate and fiscal incentivizing of R&D and Innovation, by increasing the percentage deductions in Company Taxes for innovative activities from 8% now to 12% to foster investments in R&D and Innovation in our companies. The maximum deduction limit will also increase to 60% of the total adjusted amount due. In addition, it will promote the creation of technology based innovative companies, and a series of measures backing innovation to benefit innovative companies and to foster the renewal of traditional sectors to increase their competitiveness.
  • The reduction in company constitution times, through reforms made to the Law for Limited Companies by establishing a maximum term of five days when the share capital is between 30,000 and 3,100 euros and one day when the capital is between 3,100 and 3.000 euros. The Tax on Wealth Transfers and Documented Legal Acts will also be removed and all the bureaucracy will become telematic.A series of incentives will also be given to sectors linked to renewable energies and the fight against climate change to accompany these measures. Spain is a leader in these sectors and is already receiving major foreign investment flows as a consequence.

As a result, the Spanish economy will continue to receive direct promotion in the short term to contribute to promoting the recovery and improving competitiveness in the long term with greater efficiency in the goods and services markets and increases in productivity through innovation, training and new technologies.

Interested to get involved in these new opportunities? Please contact us to get your entry in the Spanish market!