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Foreign companies in Spain According to the most recent report Foreign Multinationals in Spain, in 2013 the number of foreign affiliates was 10,722 (34.4% of Spanish large-sized companies).
Taxes A Spanish worker dedicates an average of 180 days of salary each year to pay direct and indirect taxes, principally through Social Security contributions*(102 days) and IRPF (personal income tax) (37 days).
In constant terms, workers dedicate 18 years of their working life paying taxes
Competitiveness rankings According to the Global Manufacturing Compe-titiveness Index (Deloitte), the three leading countries in manufacturing competitive-ness are China, the USA and Germany. Of 40 countries analyzed, Spain was ranked number 25 (down two positions since 2013).
By Autonomous Communities, the three with the greatest tax burden are:
• Catalonia• Castilla –La Mancha• Cantabria
For its part, in the 2016 IMD World Competi-tiveness Scoreboard, of 61 countries ranked, Spain is in position 34 (it was 37th in 2015). The list is headed by Hong Kong, Switzer-land and the USA. This year there is a nota-ble rise in Ireland and The Netherlands to reach the top 10: they rose 9 and 7 positions respectively.
186
37
102
25 11
5Days of salary dedicated to pay taxes
Free taxes
Personal taxes
Social Security contributions
VAT
Especial taxes
OthersSource: Civismo, 2016
Ranking 2016 2020
1º China US2º US China3º Germany Germany4º Japan Japan5º South Korea India6º UK South korea7º Taiwan Mexico8º Mexico UK9º Canada Taiwan
10º Singapore Canada...25º Spain ...27º Spain
Global Manufacturing
27-jun.28-jun.28-jun.28-jun.
29-jun.29-jun.29-jun.29-jun.29-jun.29-jun.29-jun.
30-jun.01-jul.01-jul.
02-jul.02-jul.
04-jul.
La RiojaCanarias
AragónMurcia
País …AsturiasBalearesCyLeónExtrem…Galicia
MadridNavarra
ValenciaAndalu…Cantab…
CLMCataluña
Date of ending tax payments
Source: Civismo, 2016
Ranking 2015 2016
1º US Hong-Kong 12º Hong-Kong Switzerland 23º Singapore US 24º Switzerland Singapore 15º Canada Sweden 46º Luxembourg Denmark 27º Norway Ireland 98º Denmark Netherlands 79º Sweeden Norway 2
10º Germany Canada 5..37º Spain ..34º Spain 3
World Competitiveness Scoreboard
Así está… June 2016
The company
Top 4 with the greatest number of companies in Spain
Regional manufacturing clusters
1st 2nd 3rd 4th
Source: Círculo de Empresarios based on Multinacionales Marca España ,2016
* ForecastSource: Deloitte, 2016
Source: World Competitiveness Scoreboard, 2016
8 in the top 10
FOREIGN COMPANIES
PERSONNEL COSTS
22,4%
NATIONAL TURNOVER
28%
GROSS INVESTMENT
25,2%
EMPLOYMENT 2,7 millon
EXPORTS
40%
SOCIAL SECURITY INCOME
19,5%
Foreign companies contribution
Top 3 with the greatest contribution to employment
1st 2nd 3rd
23.7% 14.3% 13.5%
16,9 % 14,2% 11.3% 9.6%
*
‘Así está…The company’, a publication of the Círculo de Empresarios produced by its Department of the Economy, contains information and opinion from reliable sources. However the Círculo de Empresarios does not guarantee its accuracy and does not take responsibility for any errors or omissions. This document is merely informative. As a result, the Círculo de Empresarios is not responsible for any uses that may be made of the publication. The opinions and estimates of the Department can be modified without any warning.
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Quantitative Easing (QE) ECB
Following the announcement in March of the program by the European Central Bank for corporate bonds, the issuance of this kind of debt by the companies has grown 80% with respect to the same period of the previous year. In addition, the profitability of investment grade debt has dropped by 100 basic points.
Financial Markets The uncertainty over the Brexit matter has generated some strong volatility and made “safe” investments (gold, German bonds...) more attractive. For the first time ever, the profitability of 10-year German debt is negative and joins the more than 6.4 trillion euros of European debt in circulation with negative interest rates (Bloomberg).
Energy investment and supply The U. S. Energy Information Administra-tion (EIA) estimates that in May the offer of crude oil fell by 3.6 million barrels with regard to the previous month, principally because of the fires in the oil sands in Al-berta (Canada) and the attacks on petro-leum infrastructures in Nigeria.**
Labour absenteeism According to Adecco, in 2015 absenteeism from work rose in Spain for the second consecutive year to 4.7% (4.4% the pre-vious year). The direct cost for the compa-nies was 3,857 million euros, and 5,132 mi-llion euros for Social Security. Finally, op-portunity costs in terms of goods and servi-ces production rose to 52,387 million euros.
According to Bloomberg, capital expendture in the energy and industrial sectors in the US will drop by 30% and 24% respectively, because of the decline in profits caused by low petroleum prices. Nevertheless, the price of crude oil has risen 80% since the minimums registered in February.
-400 -200 0 200 400 600 800
Kuwait
Brazil
Ghana
Argentina
Colombia
Libia
Iraq
Nigeria
Canada
Month- over- month change in global oil supply disruptionsThousand barrels per day (Apr-May)
9,6
35,255,2
ECB corporate sector securities eligibility%
AAA-AA
A
BBB
Source:Caixabank Research, 2016
1000
1050
1100
1150
1200
1250
1300
1350
-0,1
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
Haven assets 1 Jan-17 Jun 2016
Germany 10 years debt (left axis) Gold (right axis)%$
20
25
30
35
40
45
50
55
WTI prices $
4,9
4,1
4,7
3,5
3,7
3,9
4,1
4,3
4,5
4,7
4,9
5,1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Spanish Labour Absenteeism%
Tendency change
By grade... By sector...
Source: Círculo de Empresarios based on Investing, 2016
Source: Círculo de Empresarios based on EIA, 2016
Increased disruptions
Reduced disruptions
Source: Círculo de Empresarios based on EIA, 2016 * Disputes or conflicts accounted 90% of unplanned disruptions for the first 5 months in 2016
* Spanish 10y government yield: 1.5 % (22/06/2016)
44
12
23
11
10Consumption
Industry
Utilities
Financial
Energy