Doing business in Spain: Insights and opportunities

October 2025

In the second half of 2025 Spain continues to demonstrate a stable and growing business environment, presenting a host of opportunities for businesses looking to expand. In this article Russell Bedford Spain provides key insights into the country's promising economic landscape, identifies the opportunities from the rise of green energy and the digital ecosystem, and looks at the crucial role of Small to Medium sized Enterprises (SMEs).

Spain’s business landscape in 2025

According to the OECD Economic Outlook (2025) the Spanish economy is projected to grow by around 2.4% (real GDP), driven by robust external demand (particularly in tourism, services, and industrial exports) as well as continued support from EU recovery funds.

The country's business ecosystem remains a diverse and well-established one, with a strong presence of both domestic firms and over 18,000 foreign-owned companies. This blend of international and local enterprises firmly positions Spain as a strategic player within broader European and global value chains.

A clear focus on innovation, sustainability, and digital transformation is evident across sectors, generating new opportunities for collaboration and growth. As part of a global network, Russell Bedford Spain is positioning itself as a key enabler to support these developments, understanding how Spain is solidifying its reputation as a competitive and stable place to do business.

Strategic sectors to watch

Spain's economy continues to present numerous opportunities, with two sectors in particular demonstrating significant growth in 2025.

Renewable energy and the green transition

Spain has solidified its position as a European leader in wind and solar power, with major infrastructure established across Andalusia, Castile and León, and Aragón. The national strategy remains committed to ambitious targets for green hydrogen, the decarbonisation of heavy transport, and energy-efficient retrofitting, all of which are strongly supported by both EU and domestic incentives.

This green transition is generating significant demand for specialised professional services, particularly in sustainability and Environmental, Social and Governance (ESG). As businesses in the energy, engineering and infrastructure sectors increasingly require co-ordinated advice across multiple jurisdictions, our network’s ability to provide seamless, cross-border support has become essential.

Digital transformation and the technology ecosystem

Spain’s digital and technology sectors have continued to grow, driven by public investment and supportive policies designed to encourage innovation. The ‘Startup Law’, for example, has proven effective by offering key incentives such as a reduced corporate tax rate, making Spain a more attractive destination for new and innovative companies.

These favourable conditions have helped position Spain as a hub for tech-driven companies. In recent years, several multinational businesses have established innovation centres in the country, drawn by a growing talent pool, improving infrastructure, and a high quality of life.

As digitalisation advances across all industries, a clear focus on related legal and operational issues has emerged. Matters such as intellectual property, data protection, cybersecurity, and new models of remote and flexible work are becoming increasingly relevant for businesses operating in the Spanish market.

Regulatory landscape

Navigating Spain’s legal and regulatory landscape is generally straightforward with the right professional guidance. The system is stable and largely business-friendly, though it does have some regional and local specificities.

Spain offers an attractive framework of incentives for investors. As mentioned, the ‘Startup Law’ continues to be a key benefit, providing a reduced corporate tax rate of 15% for new innovative companies which meet the requirements. For larger companies, Spain’s holding company regime enables tax-efficient repatriation of foreign profits – essentially allowing dividends from overseas subsidiaries to flow through Spain with minimal taxation, thanks to the country’s extensive network of tax treaties.

In practice, effectively navigating administrative procedures and minimising the risk of delays is best achieved with strong local support and expertise.

The central role of SMEs

SMEs are the backbone of Spain’s economy, accounting for 99.8% of all businesses and more than 60% of total employment. Many of these are family-run firms, deeply integrated into their local communities, playing a vital role in both regional supply chains and the national economy.

Large domestic and international organisations often rely on these specialised and agile SMEs as key suppliers, manufacturers, service providers or distribution partners. Spanish SMEs are also increasingly embracing innovation, digitalisation, and sustainability, frequently participating in public-private partnerships or regional development programmes. Their contributions add significant dynamism and resilience to Spain’s business landscape and foster opportunities for collaboration across all levels of the economy.

Final thoughts

Spain continues to present a solid and attractive business environment, characterised by stability, innovation, and an international focus. With strong economic fundamentals, key strategic sectors on the rise, and a growing commitment to digital and sustainable transformation, the country is an ideal location for organisations looking to operate and grow within the European context.

Russell Bedford Spain provides practical, on-the-ground support to help businesses navigate this dynamic environment, ensuring successful and sustainable operations, making the most of the opportunities available.

Managing Partners At Russell Bedford in Spain

Barcelona

Juan Luis Larrumbe
jll@gnlrussellbedford.es

Ricardo García-Nieto
r.garcianieto.s@gnlrussellbedford.es

Madrid

José Luis Gómez
jlgomez@agcrussellbedford.es

Malaga

Juan Macías
j.macias@ideaasesores.com

Valencia

Jaime Salvador García
jsalvador@russellbedford.es

San Sebastian

Asier llzarbe Vergara 
ailzarbe@agem.es

Eider Ibarzabal Barrenechea 
eibarzabal@agem.es

Jonathan Felgueroso Conde
jfelgueroso@agem.es

Nerea Bengoa Arzac 
nbengoa@agem.es

Alicante

Vicente Iborra Torregrosa
vit@casamitjanaiborra.com 

Zaragoza

Jaime J.Navarro
jnavarro@navarrollimaabogados.com