Malaga Investment Guide A city to enjoy your business
City of Malaga Investor Office
www.OpenForBusiness.Malaga.eu France
Barcelona Spain
Madrid
Malaga
Andalusia 2
Malaga
Marbella
• Malaga to Marbella 50 km. • Malaga to the airport 5 km. • Marbella to the airport 40 km.
MALAGA POPULATION
Metropolitan Area 1,197,584 residents (2018) City 571,026 residents (2018) < 25 years old 156,132 residents (27%) 26 to 64 years old 319,636 residents (56%) > 65 years old 94,492 residents (17%) Foreigners 44,368 residents (7.8%) Tourists 2,978,617 tourists (2018)
SOURCE: City of Malaga and City of Malaga’s Tourist Observatory. Malaga: A city to enjoy your business
1. WHY MALAGA? ...... 4
2. HOW TO GET THERE ...... 6
3. PROCESS TO ESTABLISH A COMPANY ...... 8
4. OPERATING COSTS AND TAXES ...... 9
5. LOCATION, INDUSTRIAL SPACES AND OFFICE BUILDINGS ...... 9
6. EDUCATION AND INTERNATIONAL SCHOOLS ...... 11 3
7. VISAS ...... 13
8. INCENTIVES ...... 14
9. AWARDS AND RECOGNITIONS ...... 14
10. WORK LIFE BALANCE ...... 16
11. SOFT LANDING SERVICES ...... 18 1. WHY MALAGA?
Malaga, Spain is a Smart Mediterranean Business Groups and Institutions City with a surrounding innovative ecosystem called Malaga Valley known Malaga promotes business as demonstrated for its high-tech industry, its Smart City by the extensive network of organizations initiatives and its entrepreneurial spirit. and institutions dedicated to business and With a metropolitan population of 1.1 financial support. This comprehensive local million (8% foreign), it is a dynamic and provincial support is supplemented by aid Southern European hub and the gateway from regional and national administrations. to the famous tourist destination, “Costa del Sol”. Businesses receive assistance during the different phases of the setup process: Malaga’s economic growth was 3.4% in preliminary economic studies, site and 2018 and 4.0% in 2017. With an average office selection, startup grants and of 14 companies per day created, Malaga financial aids, launch coordination, and continues to lead regional growth and is later continued support. ranked 4th nationally. 1,000 jobs were created last year in the technology The City of Malaga, through its Investor sector as employment in the Andalucian Office, is devoted to building relationships Technological Park (PTA) grew more than with international companies and 8%. Malaga boasts one of the largest supporting them throughout the process, European business incubator networks, by providing customized confidential consisting of 12 facilities with capacity for assistance.
4 more than 300 startups. The first Spanish National Digital Content Center of Excellence opened in 2017. Industry Clusters Malaga has a rich historical heritage, such as the Catholic Cathedral, the Arab Castle • Agriculture - Taste of Malaga. known as “Alcazaba,” the Roman theater, • Construction - Association of Builders and more than 38 museums, including and Developers. the Museum and the Birthplace of Pablo Picasso, Centre Pompidou in Malaga, the • Maritime – Andalucia Maritime-Marine Collection from the Russian Museum of Cluster. Art in St. Petersburg, the Carmen Thyssen • Smart City - Andalucia Smart City Museum, the Contemporary Art Centre and Cluster. a comprehensive network of museums for • music, food, Holy Week, flamenco, popular Technology - Andalucia Information arts and more. The city is the birthplace and Communications Technology of the great painter Pablo Picasso and Entrepreneurs Association. the international actor Antonio Banderas. Malaga’s culture is not only an attraction for more than one million tourists every year, but it is also part of our way of being, living and working.
Low labor costs juxtaposed with a high quality of life make Malaga an ideal place to live, to work and to invest. 5
Collaborating Institutions 2. HOW TO GET THERE
Malaga is a city located in southern Spain. Its location makes it a strategic point of entry to do business with Europe as well as a bridge to the emerging markets of Africa.
Fully equipped
In the last few years, Malaga has undergone enormous growth in terms of quality and quantity of infrastructure, transforming into a fully equipped city that meets all of the logistics needs for international commerce.
Getting from here to there
Malaga has a complete network linking the city by land, air, and sea to major European hubs and to the rest of the world.
• More than 40 airlines operate out of the city’s international airport flying to 137 destinations. More than 19 million passengers came through in 2018, making it Spain’s fourth busiest airport.
6 • Malaga’s sea port is the second most important for cruise ships in Spain and the sixth in the Mediterranean Sea. More than 296 ships docked in the port and more than 506,277 passengers disembarked in 2018, filling the city with tourist activity, and driving major economic growth.
• An immense railway network connects Malaga to all the important points in Spain. Madrid is only 2.5 hours away and the train gets you to Cordoba in less than an hour. There are also lines that connect the city to other major urban centres like Barcelona, Seville and Zaragoza.
AIRLINE PASSENGERS 2018 % Growth 2017 % Growth Total 19,021,704 2.1% 18,628,876 11.7%
SOURCE: AENA, Ministry of Public Works and Transport. More than 40 airlines flying to 137 destinations
More than 296 ships docked in 2018
Extensive 7 high-speed railway network
MALAGA-COSTA DEL SOL INTERNATIONAL AIRPORT DESTINATIONS Nº of Destinations Active Flights United Kingdom 22 53 Germany 13 18 France 9 8 Norway 5 7 Netherlands 3 7 Israel 1 1 Qatar 1 1 USA 1 1 Other Countries 82 TOTAL 137
SOURCE: AENA, 2018. 3. PROCESS TO ESTABLISH A COMPANY
Certificate
Obtain certificate of clearance for new company name from Mercantile Register
Capital Declare company to social security Open a bank account & deposit initial capital (3,000 €)
Declare initial capital Receive Public Deed Register with to the Ministry of from Mercantile Mercantile Register Economy & Finance Register NIE Execute Solicit foreign incorporation deed identification number before a notary (NIE) or grant powers public of attorney Assignment of Assignment of provisional tax definitive tax Pay transfer tax (1%) identification identification number number
Work 8 Request work visa & residence permit Begin business operations
Law • 2 - 3 weeks timeframe Provide proof of corporate by-laws & • 550 € average legal fees (including taxes) administration 4. OPERATING COSTS AND TAXES
AVERAGE MONTHLY LABOR COSTS PER EMPLOYEE National Andalusia %1 Difference Industry 3,191.69 2,789.052 -13% Construction 2,760.72 2,528.172 -8% Services 2,563.63 2,283.732 -11%
SOURCE: INE Quarterly Labor Cost Survey (ETCL), Second Quarter 2019. Note1: % difference of the Region with respect to the national total. Note2: 2019 data.
Personal Income Tax (IRPF) is charged on the available income of individuals according to a progressive rate scale ranging from 20% to 47%. Expatriate workers can choose between this general tax system or the non-resident tax system (IRNR) at a fixed rate of 24% for a maximum of 6 years and a maximum annual income of 600,000 Euros. Income generated in other countries is not subject to the tax on this Spanish income. The following conditions must be met to be able to choose the IRNR:
• Moving to Spain must be a consequence of an employment contract 9
• Not having lived in Spain during the last 10 years.
• The work must be undertaken for a company that is resident in Spain or a permanent establishment of a non-resident company in Spain.
5. LOCATIONS, INDUSTRIAL SPACES AND OFFICE BUILDINGS
The City’s airport, the Andalusian Technological Park and the University of Malaga make up what is known as Malaga’s Productive Triangle: a consolidated network that connects knowledge, technology, business, infrastructure and people.
Malaga has more than 30 productive, educational, technical, logistical and business areas covering 10.5 million square metres.
The Industrial Parks are equipped with Logistic Centres that serve towns across the Andalucia region, given the central location of Malaga.
Everything is well connected with land, air and sea transport hubs. Andalusian Technological Park
The Andalusian Technological Park (PTA), is home to important technological multinational corporations and 646 companies, research centres and 19,873 technological experts dedicated to software development, wireless solutions, telecommunications, big data analytics, radio frequency identification, aeronautics, manufacturing, biotechnology and renewable energies. Large multinationals like Accenture, Caterpillar, CGI, Computer Sciences Corporation (CSC), Ericsson, EPAM, Fujitsu Ten, Google, Huawei, IBM, Keysight Technologies, Oracle, TDK-EPCOS and Telefónica as well as emerging companies investing in innovation are established there.
Multi-functional spaces
Malaga has many spaces to host professional events. Of note is the Trade Fairs and Congress Center of Malaga, a huge multi-functional convention center that hosts fairs, exhibitions, and congresses every year, some are open to the general public and others are business-specific. More than 375,000 visitors walked through its doors in 2018 attending 158 different events.
ANDALUSIAN TECHNOLOGICAL PARK
Companies 646 Workers 19,873 10 Combined revenues 2 billion euros
SOURCE: Andalusian Technological Park, 2018 6. EDUCATION AND INTERNATIONAL SCHOOLS
The University of Malaga, with 36,000 students study there every year which are students, offers courses in all disciplines a major addition to the city’s business most notably in tourism, engineering and talent pool. telecommunications and has more than 150 degrees between undergraduate, Malaga is home to world class Spanish master’s, and doctorates. As an Andalusia language schools which are an essential Tech Campus of International Excellence, part of the process of relocating non- the University is focused on cutting edge Spanish speaking personnel and adapting research (R&D&I) and maintains strategic to the local culture. For example, Malaca alliances with more than 150 companies. Instituto is the only Spanish school and 1 The University and the business community of only 9 language schools in the world cooperate to train and hire talented people to achieve SuperStar status at the Study in the city. Abroad Industry Awards.
Malaga also is home to prestigious business schools like ESESA, ESADE, and ESIC that offer high quality advanced More than 150 degree programmes. Thousands of degrees
11 University of Malaga 2018-2019 Registered students Bachelors 30,990 (14,396 men and 16,594 women) Official Masters 2,532 (1,067 men and 1,465 women) First and second level courses 528 (226 men and 302 women) Doctorates 1,467 (742 men and 725 women) Training Centers 866 (222 men and 644 women) TOTAL 36,190 students
SOURCE: University of Malaga (UMA), 2019. International schools
Aloha College Mayfair International Academy www.aloha-college.com www.mayfairacademy.com [email protected] English International College Tel: (+34) 952 784 923 www.eicmarbella.org [email protected] St. Anthony’s College Tel: (+34) 952 831 058/9 www.stanthonyscollege.com [email protected] Finnish School Tel: (+34) 952 473 166 www.suomalainenkoulu.net [email protected] St. George’s International School of Malaga Tel: (+34) 952 476 193 www.stgeorge.es [email protected] German School Tel: (+34) 952 290 149 www.dsmalaga.com [email protected] Sunland International School Tel: (+34) 952 830 136 www.sunland.es Tel: (+34) 952 424 253 The International School At Sotogrande Sunny View School www.sis.ac www.sunnyviewschool.com Tel: (+34) 956 795 902 [email protected] Tel: (+34) 952 383 164 12 Lycee French School www.lfmalaga.com Swans International Primary School [email protected] www.swansschoolinternational.es Tel: (+34) 952 296 900 Tel: (+34) 952 773 248
Malaga Institute of Technology (MIT) Swedish School www.colegiomit.com www.svenskaskolancostadelsol.net [email protected] [email protected] Tel: (+34) 620 729 868 Tel: (+34) 952 475 076
7. VISAS
The Spanish government has a specific immigration policy for business people, entrepreneurs, investors and qualified non EU nationals based on an agile and specialized system for visas. Characteristics:
• A single authorization for living and working valid anywhere in Spain.
• Freedom of movements within the Schengen member states.
• Streamlined processing: 10 days for visas and 20 days for residence permits, combined processing for spouses and children, procedures can be arranged through a representative. 8. INCENTIVES
Central and regional governments, universities and the European Union offer a variety of incentives, grants and loans for business. Categories include training and employment, industry specific (tourism, renewable energies), R&D project financing, Technology, Digital Content, Internationalization, SME Business Development and European Union aid grants.
9. AWARDS AND RECOGNITIONS
• The chatbot "Victoria La Malagueña" was awarded the Best Destination Guide in the first edition of 'The Chatbot Tourism Awards' by the Secretary of State for Tourism of Spain in 2019.
• European Smart Tourism Award 2019 for outstanding achievements in accessibility.
• Award for Best Institutional Brand for "Open for Business Malaga" from the Ejecutivos magazine in 2018.
• Selected by the United Nations (UN) to open a permanent headquarters forth International Training Center for Authorities and Leaders (CIFAL) in 2018.
14 • 8th best European city for its strategy to attract foreign direct investment – Financial Time (FDI Magazine) 2016.
• 2016 CIVITAS City of the Year for innovations & successes in public transport, electric car infrastructure and the implementation of the UN Climate Change Summit recommendations to reduce emissions. • “A Cultural Hub Takes Form in Málaga” The New York Times article from August 17, 2016.
• Only Spanish City in the Top 10 of the Eurobarometer: Quality of Life in European Cities 2015 survey published in January 2016.
• Received 2014 Award from EUROCITIES, the network of major European cities, for the refurbishment of 140 social housing apartments which improved the building’s energy classification from grade F to D.
• iCapital Award Finalist – 2014 European Capital of Innovation.
• Only Spanish winner of the IBM Smarter Cities Challenge (2012).
15 10. WORK LIFE BALANCE
There are many reasons to live in Malaga but all of them can be One of the top summed up in just three words: work life balance. Malaga is one of 10 European the top 10 European cities in terms of quality of life according to the last European Commission Eurobarometer and many factors put cities in terms the city on the top of that list. of quality of life
• Weather 307 sunny days a year and an average outdoor temperature of 18.4ºC give Malaga inhabitants the chance to enjoy her charms all year round. Its Mediterranean climate keeps temperatures moderate with minor variations between seasons.
• Cultural and leisure activities Museums, theatres, concert halls, art galleries, professional basketball and football teams and a variety of restaurants of distinct cuisines... Malaga also has first class sporting offerings like golfing, nautical sports, mountain trails, tennis courts and sports complexes. The city’s residents have thousands of things to do with their free time.
• Safety 16 Malaga is a safe city. In fact, it is one of the safest in the Mediterranean. You can walk through any part of the city with complete security, so you can appreciate everything it has to offer and explore its most special secluded spots.
• Multi-cultural Malaga has always been an open and cosmopolitan city, hospitable with its visitors. This has meant that a large foreigner community lives and works in the city. Employees recently relocated with their families will be able to integrate themselves easily and quickly into the life of the city.
• History Malaga’s rich history means the city is an open-air museum which can be relished by slowly walking down its many pedestrian streets in the city center. Different cultures have left their mark on the city’s streets and squares, bequeathing impressive monuments like the city’s Catholic cathedral, the Roman theatre, and the Moorish Alcazaba. All of this makes Malaga a rich and lively city full of cultural traditions.
11. SOFT LANDING SERVICES
The City of Malaga has made a commitment • Introduce venture capitalists and Business to help international companies establish Angels. offices in Malaga. We provide the following services to companies: • Grant industrial plots of land.
• Guide you through the legal process of • Help identify land and/or office space. establishing a company. • Authorize building permits and opening • Provide economic data about the current licenses. business environment. • Assist with housing, utilities, international • Identify financial incentives, grants and schooling, Spanish registration and loans from local, regional and European personal taxes. institutions. • Inform on cultural activities, recreational • Organize commercial visits to the city. events and general knowledge about the city. • Contact major companies and possible local business partners.
18 19 Investor Office City of Malaga Paseo Antonio Machado, 12, 29002 Malaga, Spain Tels: (+34) 951 929 148, (+34) 951 929 079, (+34) 951 929 161 [email protected] [email protected] [email protected] www.OpenForBusiness.Malaga.eu