Introduction: The International Attractiveness of the Spanish Market

For many years, Spain has been establishing its reputation as one of the leading and most stable destinations for cross-border capital within Europe.

Joseph Oughourlian, chairperson of Amber Capital and the Prisa Group, accurately synopsised how Spain is re-establishing itself within the global community as “…an attractive country for investment. [Spain] has reduced its major [macroeconomic] imbalances” (Spain Investors Day, an international forum held at the start of 2026).

This statement reflects the general sentiment amongst foreign investors, who perceive the Iberian market as offering legal certainty and renewed commercial dynamism. This widespread optimism regarding Spain’s financial and industrial markets is firmly supported by key macroeconomic indicators.

The projections set out in the latest country report from the International Monetary Fund (IMF) confirm a clear paradigm shift: Spain led economic growth during FY 2025 within the euro area. Economic indicators suggest that Spain is set to maintain its leading position throughout 2026, standing out from the weaker performance of other major eurozone economies.

This is confirmed by an analysis of global indicators compiled by the prestigious Guide to Business in Spain, a leading macroeconomic and legal reference manual designed to support foreign investors and large corporations published annually by the Spanish Foreign Trade Institute (Instituto Español de Comercio Exterior – ICEX). Spain currently ranks as the world’s 15th largest economy in terms of GDP and has advanced in the global rankings to ninth place in terms of foreign direct investment (FDI). This privileged position reflects the high level of long-term confidence inspired by Spain’s corporate and institutional landscape.

This situation has created an ideal environment for growth, as reflected in data published by the Venture Capital Institute in early April. In the first quarter of 2026, a total 300 investments were registered in Spain across the four private equity segments (buyout and growth, seed and venture capital, special situations and debt).

Seed and venture capital led the way, accounting for 214 transactions (around 71% of the total). Buyout and growth ranked second, with 39 acquisitions (13%). In addition, there were 38 debt investments (12% of the total), representing a 21% increase in comparison to 2025. Finally, nine special situations deals (compared to eight in 2025) were executed, accounting for 3% of the total transactions.

In terms of geographical distribution, Cataluña and Madrid account for the bulk of the total transaction volume. According to the Spanish Journal of Private Equity & Venture Capital (Revista Española de Capital Riesgo), out of a total of 300 transactions carried out in the first quarter of 2026, Cataluña ranked as the leading business destination, accounting for 28% of all transactions (84 acquisitions), ranking ahead of Madrid (26% of all recorded transactions; 77 in total). The Basque Country trailed in third place, with 12% of reported transactions (36 investments). However, regions such as the Canary Islands, Andalucia and the Balearic Islands have emerged as new strategic hubs for corporate investment, leading the way in terms of corporate relocations.

In line with the previous trend, Madrid led FDI in Spain from January to March 2026, according to the statistics published by the Ministry of the Economy on its open data portal (DataInvex), with EUR3.37 billion of gross foreign investment recorded in the region. Catalonia (EUR1.54 billion) and Valencia (EUR486.81 million) were the second- and third-placed regions in the country in terms of gross foreign investment.

Finally, when analysing foreign investment by country of origin, the United States (EUR1,359.16 billion) leads in gross investment inflows, whereas the United Kingdom ranks first regarding net investment (gross investment minus divestment, EUR1.24 billion).

Business Creation

This section briefly analyses the impact on business creation of one of the most relevant structural changes in company incorporation in Spain – the implementation of electronic processes – within a favourable macroeconomic and social environment.

Electronic incorporation

Spain has recently adopted legal reforms aimed at simplifying administrative procedures and removing barriers to entry. Start-ups have undergone a particularly significant transformation. This has been strongly driven by the implementation of the Create & Build Act (Ley Crea y Crece) (18/2022), a landmark piece of legislation strengthened by Spain’s Law 11/2023 on the digitisation of notarial procedures, which has enabled the incorporation of companies entirely online, as well as by Law 28/2022 (Ley de Start-ups) on the promotion of start-ups. This regulatory framework has revitalised the business sector, as well as helping consolidate a start-up ecosystem that is highly competitive on the international stage.

The aforementioned legislative developments have completely transformed traditional corporate structures through two substantial operational changes that redefine the rules of company creation.

• The previous process for the incorporation of limited liability companies (the most widely used legal form in Spain) has been abolished, allowing them to be incorporated with a share capital of just EUR1. This measure minimises establishment costs, aligning Spanish company creation with Anglo-Saxon corporate standards.
• Comprehensive digitalisation: The online process for company establishment – via the Single Electronic Document (Documento Único Electrónico – DUE) – harmonises procedures involving notaries, mercantile registers and the Tax Agency through a single digital portal. This procedure drastically reduces the time required for registration and obtaining a tax identification number to 24–48 hours. In addition, standardised templates for articles of association are available to the public to streamline the assessment process of the Mercantile Registries (which, under the standard company incorporation procedure, have 15 working days to register and approve the incorporation of any company).

Although these technical advances have significantly facilitated initial administrative procedures, sector reports – such as the prestigious Global Entrepreneurship Monitor Spain National Report 2025–2026 by the National Entrepreneurship Observatory (the “GEM Report 2025–26”) – show that while these measures have facilitated business creation, they are not the root cause of the upturn in business activity. It is widely accepted amongst experts in the business sector that the option to establish companies with share capital of EUR1 has had more of a psychological than an operational effect. Most founders continue to prefer limited companies with the traditional EUR3,000 share capital due to liability concerns and commercial image considerations. As a result, these measures have helped democratise access to entrepreneurship, yet they are not the driving force behind business start-ups in Spain.

A favourable situation

The significant increase in the number of companies being incorporated (an increase of over 13% in 2026, according to statistics from the Mercantile Registries in Spain) and the general upturn in business activity are mainly due to the favourable macroeconomic and social climate, driven, amongst other things, by the following factors.

• Cultural change and artificial intelligence (AI): Spain has a well-established culture of entrepreneurship. According to the GEM Report 2025–26, the rate of early-stage entrepreneurial activity has risen to 7.8% (compared to 7.2% in the previous year), fuelled by professionals with higher education qualifications and senior founders with previous corporate experience who are seeking to capitalise on new opportunities. With a more highly educated pool of new entrepreneurs, AI and data analytics are playing a key role in reducing the costs of digital business models. Almost three out of every ten new start-ups operate with integrated AI tools from the outset, enabling highly competitive and efficient micro-enterprises to be launched onto the market instantly.
• Foreign workforce and digital nomads: The attraction of international talent and visas for digital nomads have turned Spain into a hub for skilled human capital. These visas take the form of residence and work permits that allow foreign professionals to live in Spain whilst working remotely for companies or clients outside the country. One of the main attractions of this visa is access to a special tax regime, popularly known as the “Beckham Law”, which has been modified as follows: (i) instead of paying the standard progressive personal income tax (which can exceed 47%), digital nomads and foreign workers are taxed at a flat rate of 24% on employment income not exceeding EUR600,000 per year; and (ii) certain foreign-sourced income, such as dividends, rental income or capital gains obtained outside Spain, is not usually subject to taxation in Spain.
• European funds: Spain’s ambitious plan for large-scale digitalisation, supported by Next Generation EU funds and implemented through tools such as Kit Digital, has resulted in a massive indirect injection of liquidity into the domestic market. This financial stimulus has altered the landscape of self-employment in two major ways: (i) encouraging the formation of companies – thousands of self-employed workers in the IT, marketing and consultancy sectors have transformed their individual businesses into limited companies to gain financial strength and access larger-scale projects; and (ii) a boom in the B2B system – there has been a huge increase in the number of micro-enterprises focused exclusively on meeting the operational needs of traditional SMEs, which are being driven towards accelerated digitalisation to remain competitive.

Future Trends

Addressing Spain’s structural strengths remains essential when analysing future trends regarding business incorporation in the country, as outlined herein. Furthermore, from a regulatory standpoint, Spain (in accordance with the legislative changes over the last decade outlined above) continues to consolidate its standing as a pioneer in corporate law tailored to 21st century demands. Accordingly, the overarching trend towards establishing a more transparent and public environment for business creation is explored below (“Potential regulatory changes”).

Structural strengths

There are several factors that suggest that, in 2026, Spain will continue to establish itself as a leading global destination for business development. Spain’s appeal stems from numerous structural strengths and advantages, as well as optimal macroeconomic conditions.

• Strategic hub: Spain is one of the main hotspots for corporate and financial links between the EU and the Latin American market, attracting both (i) global multinational corporations and (ii) corporations from the Latin American region seeking to establish operational and strategic bases in the country. The cultural and linguistic affinity shared with Latin American countries offers a unique competitive advantage. In February 2026, the Ibero-American Business Observatory, together with the Complutense Institute of International Studies at the Complutense University of Madrid, reported that Spain has the second-highest number of springboard companies of Latin American origin worldwide, behind only the United States.
• Sectors for FDI: The Ministry of the Economy shows on its open data portal (DataInvex) that, with respect to FDI in Spain during 2026, there is a clear pattern of capital allocation to high value-added sectors. International capital is prioritising information technology and telecommunications, driven by data centres and the boom in AI. Close behind is the energy transition and massive-scale sustainability projects, largely thanks to the development of green hydrogen infrastructure and solar farms. These investments benefit from strong regulatory support and decarbonisation incentives. Finally, the high-tech industrial manufacturing sector and the pharmaceutical industry round out the top three investment attractions, reinforcing Spain’s position as a strategic industrial and technological hub within the EU.
• Ripening of the start-up ecosystem: The tech-based business landscape is highly consolidated, supported by a dense network of incubators and accelerators. In Spain, high-performance centres are increasingly being seen, not only providing seed capital but also acting as commercial validation hubs, helping start-ups achieve a 70% survival rate in their first five years. Some of the best-known incubators and accelerators in Spain include Lanzadera (in Valencia), driven by the entrepreneur Juan Roig, and Wayra (in Madrid and Barcelona), Telefónica’s corporate investment and innovation hub.
• Strong institutional backing: Business activity benefits from strong public support through leading organisations such as the National Innovation Agency (Empresa Nacional de Innovación, SME, SA – ENISA), the Spanish Foreign Trade Institute (ICEX España Exportación e Inversiones – ICEX), the Centre for Technological Development and Innovation (Centro para el Desarrollo Tecnológico y la Innovación – CDTI) and Red.es, in close co-ordination with the regional economic development agencies. At the start of the year, Spain announced the creation of a government-owned investment fund called España Crece, which would enable the Official Credit Institute (Instituto de Crédito Oficial – ICO) to inject up to EUR60 billion into the business sector, shifting its financial profile towards that of public investment. Consequently, all of the aforementioned stakeholders offer tailored and customised financial and direct investment instruments (such as traditional equity-linked loans without enforceable collateral, non-repayable grants for technology-intensive projects and new co-investment venture capital schemes), mitigating the impact of economic down cycles.
• Sophistication of the transactional ecosystem: The market has a network of first-class professional services, including specialist legal advisers and financial institutions with a solid track record, which lend maturity, security and fluidity to high-volume corporate transactions. The strength of this network is directly reflected in current investment statistics. The Spanish M&A and private equity market consistently records annual transaction volumes that exceed tens of billions of euros. This steady flow of foreign and domestic investment demonstrates the confidence that major global funds have in the country’s service infrastructure and the rigour of local financial intermediaries.

Potential regulatory changes

Regarding legislative proposals that could impact business creation, the Public Integrity Act stands out on the 2026 political agenda.

The preliminary draft on the Public Integrity Act, approved by the Council of Ministers on 17 February 2026, is currently at an early stage of parliamentary consideration. The initiative aims to strengthen the transparency and traceability of corporate ownership, in line with global trends in regulation and good corporate governance.

The proposal introduces several registration control mechanisms for limited liability companies that have generated considerable discussion within the legal and business communities, particularly due to the practical implications they could have for investment. The most noteworthy aspects are:

• the replacement of the traditional notarial instrument with standardised electronic documentation mechanisms for certain transfers of shareholdings;
• the attribution of constitutive effect to the registration of such transfers, with legal shareholder status linked to prior registration in the Mercantile Registry; and
• the granting of access to information regarding the company’s ownership, and to companies’ internal records.

If approved as currently proposed, these measures could increase the operational complexity of certain transactions and raise practical challenges in terms of execution times, as well as co-ordination with the Mercantile Registries and overall transaction confidentiality.

However, it is important to emphasise that the draft Act is at an early stage of the legislative process and will be subject to review and amendments. It is expected that the final text will incorporate the necessary adjustments to avoid practical uncertainties, while maintaining an appropriate balance between the transparency objectives pursued and the requirements of legal certainty, flexibility and efficiency.

Final Considerations

Based on current economic assessments and expert analyses, Spain is projected to maintain a strong outlook for long-term investment and corporate activity. It has demonstrated a remarkable ability to transform the macroeconomic climate into a favourable and attractive economic environment for investment.

In addition, it is essential to emphasise that sustained interest from domestic and foreign investors is not only due to the size or consumption potential of the Spanish market. What truly sets Spain apart is its role as a strategic platform for comprehensive international outreach. On the one hand, its unique geostrategic location within the political and economic framework of the EU affords it direct, tariff-free and highly interconnected access to a market of over 2.6 billion potential consumers across the Europe, Middle East and Africa (EMEA) region. On the other hand, this geographical advantage is naturally complemented by deep-rooted historical, regulatory, linguistic and cultural ties that indisputably position Spain as the gateway and ideal hub for businesses and investments seeking to expand safely into the Latin American market.

For all these reasons, the regulatory proposals currently under consideration should not be interpreted as a break on business activity. There are reasonable expectations that the parliamentary process for the organic Public Integrity Act will address the current operational uncertainties and preserve the balance between transparency and flexibility that businesses in Spain require. The sophistication of the country’s network of legal professionals will enable it to absorb these new control requirements and transform them into a competitive advantage.

By combining a network of top-tier public and private sector players with strong legal certainty, Spain reaffirms its status as one of the safest, most sophisticated and most reliable jurisdictions for investment capital.