Why invest in Spain’s ICT industry?

The Information and communications technology (ICT) sector sector has been one of the fastest growing sectors in Spain over the last decade, and digitalisation is a strategic factor in transforming the production model and stimulating Spain’s post-pandemic economic recovery.

The Spanish government’s commitment to digitalisation is strong, as highlighted in the Digital Spain Plan 2025, which includes specific strategies to promote technologies that are crucial for Spain: 5G, cybersecurity, big data and artificial intelligence. Its commitment to communications and new technologies has also been reinforced by Europe’s commitment to digital transformation as a lever for transforming the economy.

“Spain is one of the top EU performers on digital connectivity: ranks third in the EU in connectivity and seventh in digital public services, with levels well above the European average (Digital Decade Report 2023)”

The importance of the ICT sector in Spain

The ICT sector had a turnover of 122 billion euros in 2022, which represents a growth of +5.1% compared to the previous year. The digital economy continues to increase its impact, reaching 22.6% of GDP, with over 38,209 domestic and international ICT companies directly employing 636,326 people (Digital Economy Barometer AMETIC september 2023).

Spain ranks first among large European economies in very high-capacity network coverage: 93% of individuals have access to very high-capacity fixed networks (more than 100 Mbps), 20 points higher than the EU average, according to the DESI Indicators 2023 (Digital Decade Report 2023).

Science parks work in collaboration with the business sector to promote innovation projects in ICT clusters that are located in almost every part of the country. 

ICT is a mature sector in Spain, where prestigious businesses such as Telefónica, Amadeus, Indra or Everis lead projects on international markets. Exports of goods and services from the ICT sector maintained an upward trend in 2022 with the record number of 21,089 million euros, representing 4.4% of Spain’s total export.

In 2022 E-commerce turnover recorded a significant growth of +25.4%, reaching 72,400 million€.

Spain has the largest household fibre network in the EU. And 92% of households are covered by very high capacity networks. With more than 172,000 mobile base stations and over 58 million mobile phones, foreign ICT companies and entrepreneurs are choosing Spain for its solid telecommunications infrastructure network and excellent connectivity.

As an EU member with a key location for trade, Spain is a gateway to the EU market and business with European partners. Spain has a dynamic ecosystem for startups, with various cities and regions featuring on the European innovation and digitalisation map. It offers physical security and legal certainty, social stability and an attractive lifestyle that makes it a unique life experience for many digital nomads and their families. 

Reasons to invest in Spain’s ICT industry

Spain is committed to the ICT industry. There is both national and regional support for ICT companies interested in establishing themselves in our country. The high level of connectivity and skilled workforce in an environment similar to the EU make our country a good choice for ICT business projects.

  • Digital Agenda for Europe. A pillar of the Europe 2020 Strategy, it generates a wide range of business opportunities for ICT companies.
  • Market with potential. The national ICT market is mature but has a great potential for growth in some areas.
  • Experience. Companies that already operate in the region are skilled in business practices in information technology, as well as in exporting services. 
  • Geographical bridge. Spain’s position as a geographical and cultural bridge offers opportunities to team up with large Spanish multinationals in third markets (the European Union, North Africa, Latin America) where they are already established.
  • Training and qualifications. Professionals and technicians in the ICT industry in Spain are extremely well trained and highly qualified.
  • Competitive labor costs. Labor costs are more competitive in Spain than in many neighboring countries.
  • Scale up projects. Spain is a great destination to invest in scaling up projects using resources in Latin America.
  • Infrastructures. Modern transportation and telecommunication infrastructures favor the establishment of ICT companies.
  • Clusters. There is an extensive network of science and technology parks and centers for higher education.

What are the best investment opportunities?

  • Implementation of corporate SCC in Spain.
  • Internet of Things.
  • Semiconductors.
  • Smart Cities.
  • FinTech.
  • Cybersecurity.
  • Artificial intelligence and Big Data.
  • 5G technology.

If you are thinking of setting up your business in Spain and need more information about taxes in Spain, do not hesitate to contact us.

Source of information: ICEX, Ministerio de Industria, Comercio y Turismo

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