Trade represents more than a half of the Spanish GDP and plays an important part in the country’s economy even if it have recorded an important deficit in the past few years, when the economic crises affected the Spanish economy. The deficit was also caused by the massive quantity of imported petrol and the weak competitiveness of the local market that is estimated to recover in the next years. The strength of the local currency – euro – was another cause of the decline of Spanish exports that have become more expensive.
In the first quarter of 2015, exports increased by 4.4% and imports decreased by 2.5% and the trade deficit was thus reduced.
The main products exported by Spain are: cars, refined petroleum, medicaments, vehicle parts, delivery trucks and food and the main destinations for the exports are: France, Germany, Italy, Portugal and United Kingdom. Other products exported by Spain are: iron blocks, citrus, other fruits and vegetables, olive oil etc. Spain has good trade relationships with the countries in the European Union that represent over 60% of the trading partners.
Crude and refined petroleum, vehicle parts, petroleum gas and medicaments are the most imported products in Spain from countries such as Germany, France, China, Italy and the Netherlands.
Spain has a trade policy similar to other countries in EU and it is a member of the World Trade Organization since 1995.
A foreign investor who wants to trade in/from Spain needs a few details about the legislation related to trading, from the Labor Law to the taxation, permits and licenses etc. For trading activities, a foreign entrepreneur should firstly decide the type of company he wants to incorporate in Spain and the most common type is the limited liability company. He/she must obtain an identification number for foreigners and register with the tax authorities and the social security system. Entrepreneurs needs trading licenses and permits in order to be allowed to trade.
For more details about trading in this country, you may contact our law firm in Spain.
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