Spanish families remain concerned about food-related prices, and the consumer economy is negatively impacted by the recent increase of interest rates.

Although the impact of the war in Ukraine on the Spanish economy remains unpredictable, recent high inflation rates have slowly stabilized. Some political uncertainty continues after the July 2023 general elections. There is a slight risk of political gridlock owing to the slim majorities held by multiple Spanish political parties in coalition.

Spain is a price-sensitive market, and foreign goods must conform to EU and local standards. U.S. exporters should pay close attention to labeling regulation requirements to export and sell products in the Spanish or EU market.  A local agent or distributor should be able to assist with obtaining the necessary certifications and permits required for importation.

U.S. products are well respected for their high level of technology and quality; however they sometimes fall short of their competitors in terms of flexibility of financing, the adaptation of product design to meet local market needs, and assistance with marketing and after sales service. 

U.S. exporters to Spain should remember that they are competing with European companies who often provide generous financing and extensive cooperative advertising. Most European governments support exports with trade promotion events. Beyond European Union competitors, the People’s Republic of China (PRC) and PRC companies have adopted a very aggressive commercial and economic approaches towards Europe; and PRC companies are emerging as formidable competitors in areas of strategic importance such as port and airport security. 

Spain’s 17 regional governments, known as autonomous communities, each have a distinct cultural identity and carry varying degrees of autonomy. Autonomous communities are similar to state governments in the U.S., but the differences can be more pronounced from a business perspective. This factor can complicate the launch of a nationwide marketing strategy as decision makers may need to be consulted in each of the 17 regions. The level of autonomy varies from region to region, with Catalonia and the Basque Country being the most pronounced. The Catalan government requires that products for distribution in the region be labeled in the Catalan language as well as Spanish, which imposes higher costs and administrative requirements for almost all firms.

Disbursements in public sectors contracts remain a challenge. Although the situation has improved as result of legislation in 2015, lack of timely payments for public tender agreements by regional and local governments continues to occur.

As a member of the European Union (EU), Spain is a party to all EU legislation, including the broader data protection throughout the EU, which came into effect in May 2018. Additional details are available via the trade.gov website.