By Betty Henderson • 10 March 2023 • 10:12
European nano-state Luxembourg accounts for the largest channel of foreign investment arriving in Spain. The country’s tax incentives are thought to be the cause.
Photo credit: Zinneke / Wikimedia Commons
SIGNIFICANT portions of investment in Spain passes through other countries, but the latest data from the Spanish Ministry of Industry, Commerce, and Tourism released on Wednesday, March 8 has revealed the biggest sources of Spain’s foreign investment.
The report found that 41.3 per cent of all corporate investment in Spain in the last five years was channelled through Luxembourg and the Netherlands. Together, the two countries have funnelled a whopping €64.9 billion into the country.
Luxembourg, known for its generous tax incentives, is at the top of the list, having channeled €49 billion into Spain, while the Netherlands, currently in the news for Ferrovial’s decision to relocate its headquarters there, has concentrated €15.878 billion of investment in Spain.
Germany is also a significant player, accounting for 12 per cent of the investment flow to Spain, totaling €19.494 billion, with most of the investment being direct.
Despite the significant investment that comes to Spain from countries that offer lower tax rates, such as Luxembourg or the Netherlands, tax avoidance remains one of the biggest problems for the Spanish Tax Agency.
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