Things To Consider When Investing In Spain

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In the past couple of years, Spain has been one of the most targeted markets when it comes to investments. The economic sector in this country is very stable, even though they had a big financial and political crisis a few years ago.

The business climate in this region has never been better. The fact that Spain is ranked as the 3rd largest recipient of foreign investments in Europe and has many developed industries speak for themselves. Since this country is the most common choice for both domestic and foreign investors, we decided to name a few things that each investor should consider when buying shares here. Let’s check them out.

 

Consider Using Index Funds

Index funds work by buying all of the shares from a certain company on the same index. The reason why so many investors want to use index funds is that this type of investment has numerous advantages.

First off, they have low commissions. Compared to traditional funds, index funds have 70-80% reduced commissions. The average commission for traditional funds is around 2%, regardless if you earn money or not. Index funds have a commission of around 0.3-0.5%, which is a much lower rate.

They are also easy to understand as you don’t have to analyze company ratios, fluctuations, etc. Index funds replicate the economy of a country which is why you won’t have to spend a lot of time researching and learning everything about them. Other pros include fiscal benefits and diversification.

There is no doubt that index funds can provide you with perfect solutions, which is why you might want to get more familiar with them. If you want to check them out, https://compraracciones.com/fondos-indexados/ has a full guide on what are index funds and how to invest in them.

 

Invest In the Strongest Industries

Earlier in this article, we mentioned that Spain has a very strong economic sector and there are many well-developed industries. Some of those industries are tourism, land transportation, renewable energy, telecommunications, etc.

Telecommunications and tourism are by far the best industries. Each year, Spain has more than 50 million visitors, which is a staggering number. As for telecommunications, it is worth noting that there are around 60 million mobile phone lines. Additionally, broadband usage is also massive. It is estimated that more than 99% of Spanish companies regularly use Internet services.

Not only that, but thanks to its good geographical location, Spain can be easily connected with markets from many parts of the world. Some of them are Europe (logically), Latin America, North Africa, and even the Middle East.

 

The Market is Suitable for Foreigners

While the climate is very good for domestic investors, Spain is also extremely suitable for foreign investments. The country has more than 12,000 foreign-registered companies and 70 of the 100 top global brands operate in Spain through branch offices.

Some other interesting facts are that Spain is ranked 9th in the world when it comes to openness to foreign investments. The Spanish Act 14/2013 also helps foreign businessmen start a company here. They do not have many restrictions which are why this process is easy.

The costs are also much lower compared to other countries in Europe and the world. Employment-related costs are 29% lower than the Eurozone region and 16% lower than the European. Low costs are among the things that interest investors and businessmen the most, and that is exactly what this country provides them with.

Low costs mean that the companies can focus more on making a profit and expanding, thus be able to employ more working staff and ultimately, strengthen Spain’s economy.

 

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