An economy open to business
Discover why Madrid is the optimal location for your company.
An economy open to business
The Community of Madrid facilitates the establishment of new companies and makes it possible for investors to maximize their development potential.
A Regional Government committed to continuously improving the business climate and attentive to investor needs.
A Regional Government committed to paving the way for businesses, reducing administrative procedures and obstacles.
Madrid is the only Spanish region that offers traders the possibility of establishing their own opening hours, depending on their needs and interests. Any store can open every day of the year, 24 hours of the day. Sale periods are also deregulated.
Madrid has the lowest tax burden out of all Spanish regions:
- Citizens residing in the Community of Madrid are those who pay the lowest taxes in the country, thanks to the commitment of the Regional Government to maintain moderate tax rates, which allow to sustain public finances and, at the same time, stimulate consumption.
- There is a 100% discount applied to wealth tax in the Region of Madrid.
- Taxation on Property Conveyance and Documented Legal Acts (necessary for the purchase or sale of goods or the constitution of companies, for example), has the lowest rates in Madrid out of all other regions in Spain.
- Inheritance and Donation taxes also have a very advantageous tax in Madrid compared to other regions of Spain.
In addition, Spain offers companies one of the lowest corporate taxes in Western Europe.
COMPANY TAX (%) 2019
Source: OECD statistics
Madrid is the economic driving force of Spain
- Madrid represents 1,6% of the total area of Spain.
- The Madrid population in 2017 was 14% of the total national population.
- Production within the Region of Madrid represents 19% of the national GDP.
- Madrid has the highest GDP per capita among Spanish regions: € 33.809 (35% higher than the national average).
- The Madrid economy is based primarily on services, although it also has an advanced and powerful industrial base.
GROSS ADDED VALUE OF THE REGION OF MADRID ACCORDING TO SECTORS
The Community of Madrid leads the Spanish and European growth. The regional GDP registered an advance in 2018 of 3,7%, much higher than the national average (3,1%) and the average of the euro zone (1,8%).
The most recent forecasts point to a continuation of the expansionary cycle despite the slight reduction in growth forecasts. According to BBVA Research, the GDP of the Community of Madrid will grow by 2019% in 2,8, again above the Spanish average (2,4%) and the euro zone average (1,6%).
| GDP growth | 2018 | 2019 Est. |
| Madrid | 3,7% | 2,8% |
| Spain | 3,1% | 2,4% |
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Main financial centre of Spain
Madrid is used as the base for the operational headquarters of the main Spanish banks (Santander, BBVA, Popular, Bankinter, Bankia) as well as foreign banks and investment funds operating in Spain.
All the main national and international financial institutions with a presence in Spain are based in Madrid: Banco de España, Madrid Stock Exchange, IBEX, Latibex, National Securities Market Commission, Spain Financial Center, Inter-American Development Bank, European Bank of Investments, IOSCO, etc.
The Madrid Stock Exchange is the 6th European market by market capitalization (after London, Euronext, Deutsche Börse, SIX Swiss Exchange and NASDAQ OMX Nordic Exchange).
Legislative and regulatory decision-making centre
The majority of governmental, administrative and regulatory institutions of Spain are based in Madrid:
- Royal Residence and Head of State,
- Congress of Deputies,
- Senate,
- Constitutional Court,
- Supreme Court,
- Central Government and all ministries,
- Public companies and regulatory bodies within a national context, such as the National Commission on Markets and Competition.
Business Decision-Making Centre
There are more than 500.000 registered companies in Madrid, which equates to almost 16% of the total number of businesses operating in Spain in 2018.
Madrid has more than 7.000 foreign companies, 39% of all those that operate in Spain.
The vast majority of major law firms, consultancies, engineering and real estate companies have set up their central Spanish base in Madrid: PWC, Deloitte, Accenture, KPMG, EY, Garrigues, Cuatrecasas, JLL, CBRE, Regus, Savills-Aguirre Newman etc. .
Madrid is the 4ª city of the European Union (after London, Paris and Amsterdam) by number of oprational headquarters of multinational companies, according to the list FORTUNE Global 500 2018 (Santander, Telefónica, Repsol, ACS and Mapfre).
Madrid hosts the headquarters of most of the large Spanish companies: 2 of each 3 Spanish companies included in the latest Forbes list 2000 Global companies are headquartered in Madrid
65% of Spanish multinationals have their central base in Madrid.
In terms of attracting investment, Madrid is the leading region in Spain.
For foreign investors, Madrid is the number 1 option:
- Historically, more than half of incoming investment to Spain goes toward the region of Madrid.
- Almost 6 out of 10 euros invested in Spain between 1993 and 2017 they arrived in the Community of Madrid.
- Only in 2018. , the Region of Madrid received foreign investments totally more than 40.000 millones de euros, up an 125% more than the previous year (an increase of more than half in a year).
- This in turn implies that the Community of Madrid received in 2018 the 85% of the total of investment entries in Spain.
Investment flows received between 1993 and 2018
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