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