Gateway to the Latin American Market

R&D: Spain offers both tax reductions and cash grants for domestic and foreign companies that wish to operate in these sectors. Tax reductions could reach up to 65% for businesses from the social security contribution or returns of corporate tax for patents. Grants are mostly accessible for companies that invest foreign capital. The grants could be non or partially repayable and require approval of the budget.

Job creation & CAPEX: Most employment-related incentives consist of tax reduction unless the hiring takes place in sectors with high unemployability or for life science and R&D businesses. Most tax reductions are for fixed and permanent jobs created, in exceptional cases, specific reductions in social security contributions are implemented for temporary contracts involving workers with disabilities or individuals facing social exclusion.

While many tax relief measures aimed at promoting specific investments have been abolished, the major types of tax relief continue to be in effect. These include tax exemptions or deductions to avoid double taxation at the domestic and international levels, tax credits for research and development (R&D) activities, and tax credits for technological innovation.

Training: The vocational training initiatives eligible for financing under the current vocational training for employment system in Spain fall into four main categories: programmed training by employers for their workers, training offered by authorities to employed workers, training offered by authorities to unemployed workers, and other vocational training initiatives aimed at personal and professional development while meeting labour market needs.

Green and other: Spain has introduced multiple incentive schemes, including specific subsidies on corporate income tax for the usage and creation of renewable energy with a total budget exceeding EUR 1 billion until the end of 2023. As part of the Recovery, Transformation, and Resilience Plan, that allows prospective beneficiaries to apply through the regional administration.