Spain is a European country located on the Iberian Peninsula, bordering France, Andorra, Portugal and the territory of Gibraltar.

The Spanish autonomous cities of Ceuta and Melilla share a land border with Morocco. The Canary and Balearic Islands are also part of the Kingdom of Spain. Spain is a constitutional monarchy, the head of state is King Philip VI.

The Parliament consists of two chambers, in both of which the Spanish Workers’ Socialist Party PSOE has the largest representation. It governs in a coalition with the left-wing Unidad Podemos, the Prime Minister has been Pedro Sánchez since 2018.

Strong decentralization is typical for Spain – in addition to the national parliament, there are 19 autonomous parliaments that exercise their authority in individual autonomous regions.

Tourism and the service sector play a significant role in the Spanish economy, so the covid-19 pandemic has dealt a big blow to the country’s economy, which saw an 11% drop in GDP in 2020. Economic growth is expected to recover by 5.% of GDP during 2022 and by 3.9% of GDP in 2023.

In the coming years, Spain wants to focus primarily on the development of industry, fields with high added value, digitization and green energy. The EU market is a key partner for Spain.

Czech-Spanish trade relations have enjoyed mutual development in recent years, key areas of trade exchange include the automotive, engineering and food industries.

Prospective fields of business primarily include ICT, the energy industry, and the healthcare and pharmaceutical industries. A personal approach to clients, face-to-face meetings and, ideally, knowledge of Spanish are essential for business relations.

Practical telephone numbers (emergency services, police, firemen, information lines, etc.)

• Emergency telephone number 112 – this can be used to contact the police, paramedics (SAMUR), fire brigade and other emergency services. It is functional 24 hours a day.
• Civil Guard (Guardia Civil): 062
• National Police (Policía Nacional): 091
• Municipal Police (Policía Municipal): 092
• Red Cross: + 34 91 532 55 55
• The international dialing code for Spain is 00 34

Important web links and contacts

Ministries:

• Prime Minister – www.lamoncloa.gob.es
• Ministry of the Presidency of the Government, Relations with the Parliament and Dem. memories – www.mpr.gob.es
• Ministry of Economy and Business – www.mineco.gob.es
• Ministry of Foreign Affairs, EU and Development Cooperation – www.exteriores.gob.es
• Ministry of Transport, Mobility and Urban Agenda – www.mitma.gob.es
• Ministry of Defense – www.defensa.gob.es
• Ministry of the Interior – www.interior.gob.es
• Ministry of Justice – www.mjusticia.gob.es
• Ministry of Industry, Trade and Tourism – www.mincotur.gob.es
• Ministry of Finance – www.hacienda.gob.es
• Ministry of Economic Affairs and Digital Transformation – www.mineco.gob.es
• Ministry of Inclusion, Migration and Social Affairs – www.inclusion.gob.es
• Ministry of Education and Vocational Education – www.educacionyfp.gob.es
• Ministry of Culture and Sports – www.culturaydeporte.gob.es
• Ministry of Health – www.mscbs.gob.es
• Ministry of Agriculture, Fisheries and Food – www.mapa.gob.es
• Ministry of Territorial Policy and Public Administration – www.mptfp.gob.es
• Ministry of Science and Innovation – www.ciencia.gob.es
• Ministry of Consumption – www.consumo.gob.es
• Ministry of Social Affairs and Agenda 2030 – www.mdsocialesa2030.gob.es
• Ministry of Equal Opportunities – www.igualdad.gob.es
• Ministry of Universities – www.universidades.gob.es
• Ministry of Ecological Transformation and Demography – www.miteco.gob.es

Institutions, organizations, agencies:

• Statistical office – www.ine.es
• Spanish Institute of Foreign Trade – www.icex.es
• Spanish Chamber of Commerce – www.camara.es
• Spanish Confederation of Entrepreneurs – www.ceoe.es
• AENOR – Spanish Agency for Standards and Certification – www.aenor.es
• Spanish Agency for International Cooperation for Development – www.aecid.es
• Economic and Social Council – www.ces.es
• Small and Medium Enterprises www.ipyme.org
• Spanish Investment Promotion Company – www.cofides.es
• Official credit agency – www.ico.es

Banking:

• Banco de España – www.bde.es
• Banco Bilbao Vizcaya Argentaria – www.bbva.es
• Banco Santander – www.gruposantander.com
• Bankia – www.bankia.es

Business and Trade:

• Information about business with Spain – www.spainbusiness.com
• Central commercial register – www.rmc.es
• Tax Office – www.agenciatributaria.es
• OECD Economic Surveys – www.oecd.org
• Company contacts – www.subcont.com

Spain’s foreign trade statistics – aduanas.camaras.org

• State Secretariat of Commerce – www.comercio.es
• Updated EU customs rates – www.taric.es
• Information for investors in Spain – www.investinspain.org

Industry and Transport:

• Information on the construction sector – www.seopan.es
• Confederation of Entrepreneurs in the Plastics Industry – www.anaip.es
• Iron products – www.unesid.org
• Textile and clothing industry – www.cityc.es
• Spanish Federation of the Chemical Industry – www.feique.org
• Spanish Federation of Apparel Companies – www.fedecon.es
• Multi-sector association of export companies – www.amec.es

Travel information:

• Tourism Institute – www.iet.tourspain.es
• Spanish tourist portal – www.spain.info
• IBERIA Airlines – www.iberia.es

Economic printing:

• Cinco Días Diary – www.cincodias.com
• Expansión newspaper – www.expansion.es
• El Economista newspaper – www.eleconomista.es

PaulSourcing: Ten Commandments for doing business with Spain

The PaulSourcing agency has prepared ten recommendations for doing business with Spain for Czech entrepreneurs interested in business relations with Spain. In 2020, it was supplemented with 4 current tips.

4 recommendations for entering the Norwegian market during the coronavirus pandemic:

1. Competition analysis Before entering the Spanish market, it is advisable to do a competition analysis and find out which companies from your sector are present on the local market and how. In many sectors, there is a lot of competition in Spain not only from local companies, but also from foreign companies, for example from Western Europe (France, Germany), Asia and the USA. The form of their operation (through distributors, own branch, OZ) and the associated quality and range of services will influence the expectations of local clients and the factors that you must meet in order for your products to succeed.
2. Preparation of suitable documents and price offer Based on the already mentioned analysis and your experience, it is a good idea to prepare the cooperation format and pricing policy in advance. It is necessary to think mainly about a sufficient margin for partners, a budget for marketing support, take into account the price of transport and, in the case of more technologically complex products, also about after-sales service.All this information must be processed into leaflets with high-quality graphics, for which high demands are placed in Spain. It is also necessary to have basic information about the product and the company in Spanish (company presentation, A4 leaflet), where there will be a summary of basic information about the product, main sales arguments and references from abroad.
3. Searching for suitable partners Although Spanish companies are not obliged to register with the Chamber of Commerce or sector associations, these organizations are a suitable source of information. You can combine these sources with a Google search by keywords. The necessary information must then be added from the company registers. There are public ones, where you can find general information, and paid ones, where you can get risk ratings, contacts and names of executive directors.A combination of the two is a basic process that will allow you to build a list of companies, but it is not enough to get the right contacts. In most cases, it is necessary to call individual contacts individually by phone and get emails to the buyer, i.e. the sales department.
4. Addressing partners and communication To address potential partners, use all possible channels such as e-mail, telephone, social networks or WhatsApp. Communication must be intensive and it is good to plan the individual steps so that there is not too long a delay between them.It is necessary to take into account that in Spain there are twenty to thirty spams per day. It is therefore advisable to follow up email communication with a telephone call and sending printed materials with samples. After the initial contact, it is advisable to come to a personal meeting – which will add meaning to your intentions and at the same time you will be able to check the client’s background on the spot.

The Ten Commandments for Trading with Spain

1. Prepare documents and sales arguments .The Spanish do not like to improvise when negotiating. The negotiations are usually attended by several representatives of the company (mostly the employee in charge of the agenda and at the same time his superior), in the case of large companies often three or more people. After a short introductory phase consisting of introducing the company, it is customary to proceed directly to the topic under discussion. During negotiations, it is advisable to use a brief, original company presentation that will attract attention. A clear presentation of the offered product/service and a logical sales argument are expected.Discussion of price conditions, as an important parameter of the trade, is expected during the negotiation, not at its end. The Spanish partner expects a clear and transparent attitude when negotiating prices, improvisation inspires mistrust. At the end of the meeting, it is customary to verbally summarize the discussed topics and then send the conclusions to the responsible persons by email.
2. You can’t do without Spanish .English is used only in large or export-oriented companies. The use of an interpreter is not uncommon during negotiations, as is clarification and confirmation of the interpreted conversation in English. After establishing personal contact, written communication in English is usually possible. Expect split working hours (9:00-14:00, 16:00-19:00) and find out in advance about national and regional holidays.
3. For the first contact, make a phone call rather than sending an e-mail or fax .Polite phone communication is preferred even after sending an email, and continuous phone contact is often the key to establishing business relationships. Most companies are willing to cooperate only after a longer acquaintance with the partner. Superiority is not welcome with foreigners. It is not appropriate to discuss Spanish politics, the Catholic faith, separatist tendencies of the regions, bullfights with a Spanish partner.
4. Be brief and to the point .Being too detailed during the initial contact, as well as reopening the discussed topics, will arouse distrust. After the end of the negotiations, continuous email and telephone contact and a flexible response to the submitted requests are expected (even though it is not possible for us to deliver the requested goods). During the meeting, there is usually a break for coffee or another drink, when there is usually space for an informal personal conversation.Suitable topics for a short conversation, in which relaxation and openness are expected (physical contact and entering into a conversation are considered impolite in informal interaction), are family, gastronomy, travel (Prague is among the preferred destinations of Spanish tourists).
5. Don’t underestimate your appearance .Spaniards prefer classic clothing (suit with tie) and a clean and well-groomed appearance when dealing with formal work. He enjoys fashion and elegance. They also judge their business partner through this prism.
6. Loyalty to the company is expected. Spanish society does not tolerate titles, status is more important. Older persons whose position in the company hierarchy is usually higher are respected. Restraint and transparency are valued during negotiations. Central Europeans are not expected to haggle or be overly spirited. The Spanish prefer a clearly understandable, matter-of-fact approach, supplemented by a short informal conversation during a break or after a meeting.
7. Prepare to negotiate prices .When negotiating prices, long haggling is not usual. The price offer should be unambiguous and accompanied by a suitable sales argument. In the initial offer, however, it may be advisable to leave room for a slight discount, which can then be used, for example, to cover transport costs.Large companies often communicate an acceptable price level during negotiations. When calculating the price, it is advisable to take into account the delivery condition DDP, the seat of the Spanish company and the payment period of 30 or 60 days. Competence is expected in the sense of the authority to make decisions on behalf of the company. The verbal agreement is usually confirmed by a written document in the following days.
8. Emphasis on design .Industrial design can be a suitable form of innovation, increasing utility value and reducing handling costs. From the point of view of both the customer and the trader, the design of the product is usually considered the most important criterion. The successful Czech products therefore include products with a modern design (Tescoma, MMCité).
9. Check the credibility and creditworthiness of the Spanish partner in advance. It is advisable to do the same repeatedly at regular sixteen-month intervals. Pay due attention to the conclusion of the contract, which you consult with lawyers with knowledge of Spanish commercial law. It will pay off!
10. Don’t forget about ongoing communication .The Spanish partner expects ongoing telephone, or email communication. A pause of several weeks arouses mistrust, which can be the cause of withdrawal from the business. Arrange personal meetings (visits of the Spanish partner) several weeks in advance.