Overview
Relationships are still very important in selling in Spain, sometimes as important as price or quality, especially in large account sales.
The decision-making process within a Spanish company is different from that in the United States:
In Spain, top executives often make decisions that would typically be made at lower levels elsewhere. These executives take action after review by different departments, making the sales process longer. An initial “yes” can mean that the company will study the situation, but not necessarily purchase the product.
Additionally, once the Spanish potential partner of a U.S. firm has agreed to start a commercial relationship, the Spanish company normally expects the U.S. firm to translate all commercial brochures, technical specifications, and other relevant marketing materials into Spanish. Decision makers at the Spanish firm may do business in English with the U.S. firm, but the communication from the U.S. firm to its clients should come in Spanish, if possible, due to an overall lack of proficiency in English.
Department stores, hypermarkets, shopping centers and very specialized outlets are introducing the customer loyalty concept, including client cards, cumulative discounts and special offers for frequent customers. eCommerce is influencing some traditional segments of the direct marketing sector, such as mail order. Selling techniques, taking into consideration local tastes, are very similar to those in the rest of the Western world.
Trade Promotion & Advertising
CS Spain’s primary objective is to help small and medium-sized businesses (SMEs) to enter the Spanish market. One of our most valuable tools is counseling, including identifying the best possible trade promotion strategies for specific products or services.
Visit CS Spain’s website, or contact our office to learn more about the variety of services available to facilitate U.S. exports to this market and others within Europe
Commercial Service Madrid has close relationships with the main trade fair authorities, i.e., in Madrid, Barcelona, Valencia, and Bilbao, and actively supports leading trade shows in these cities.
The News Media
Spain has more newspapers and magazines per capita than any other European country. However, only 13.4 percent of Spaniards read the newspaper every day, a number that has been steadily decreasing for the past years. Despite low readership, newspapers still shape the news agenda and program content of broadcast media. Spanish newspapers tend to have an editorial line that favors a particular political group. (Source: AIMC-EGM as of 2022)
The main newspapers in Spain are:
- El País – center-left, regarded as the nation’s paper of record.
- El Mundo- centrist
- ABC – center-right
- La Razón – center-right
- La Vanguardia – centrist, based in Barcelona
- El Periódico – left-leaning
More than 140 different dailies (mainly local or regional) plus a dozen supplements are published in Spain. Sports daily newspaper Marca rates as the most popular. Despite Spain’s having formally recovered from the financial crisis of 2008, Spanish newsrooms still suffer the effects of a downsizing industry, where news consumption shifts from print to online. Newspaper companies have seen their advertising revenues reduced by more than 60 percent and all have suffered the impact of fleeing readers that now get their news from the internet (84 percent, now the leading platform in the country to tune in to news). Digital-only platforms, led by www.elconfidencial.com, have become leading players in the Spanish news market. All national dailies have on-line news sites, most popular among younger audiences. While these sites have growing readership, news agencies face the challenge of how to monetize their platforms beyond on-line advertising. Since the first quarter of 2020, all main national newspapers have created pay walls to access their sites.
Six major media holding companies own most of the media outlets in Spain. They are:
- Grupo Prisa
- Grupo Godó
- Grupo Zeta
- Grupo Planeta
- Vocento
- Grupo Voz
Virtually every Spanish home has a television (99.8 percent) and it is the second most followed media (79.1,8 percent of all Spaniards).The average consumption TV time was 201 minutes/day in 2022. Peak viewing hours are between 2:00-4:00 p.m. and 9:00-11:30 p.m., but in the last 25 years, the prime time in Spain has been delayed one hour, and currently takes place at at almost 11 p.m.
State-run Radio Televisión Española (TVE 1, TVE 2 and the 24/7 channel TVE24H) and regional stations run by the autonomous governments have been supplemented by five national private commercial channels: Antena 3, Telecinco, La Sexta and Cuatro TV (in order of audience). A merger between Telecinco and Cuatro was finalized in 2010; both stations remain on the air. A second merger took place in 2011 between Antena3 and La Sexta in response to the latter’s dire financial situation.
About 53,8 percent of Spaniards listen to radio every day for almost two hours, mostly on FM channels, and radio remains the most-trusted news medium. Peak listening hours are early in the morning and late at night. Major radio stations and wire news services include:
Privately owned stations:
- Cadena SER is the leading Spanish radio station with an average audience of 3.9 million listeners, 28,5 percent of the total audience share. Left oriented.
- COPE has surpassed Onda Cero as the second most popular station in the past year and currently has 3,3 million listeners, 27.2 percent of the audience share. Right-oriented, conservative, owned by the Spanish Church.
- Onda Cero is down to third with to 1.8 million listeners, 12,9% audience share. Center-right oriented.
Government-owned station:
- RNE, 0.9 million listeners 6,1 percent audience share. (Source: EGM)
Publicly owned wire news service:
- Agencia EFE
Privately-owned wire news services:
- Europa Press
- Colpisa
- Servimedia
The U.S. Embassy’s Public Diplomacy (PD) (https://es.usembassy.gov/embassy-consulates/madrid/sections-offices/public-diplomacy/) section maintains active relations with the full range of Spanish media. PD actively pursues placement of policy and program material in the major Spanish media, primarily on foreign affairs, security, and international trade issues.
Pricing
Pricing practices in Spain are like those of the United States, although markups tend to be slightly higher. There is greater transparency in agent and distributor commissions in Europe in comparison with the United States.
Products and services in Spain are subject to Value Added Tax (VAT, or IVA in Spanish). Presently, the general VAT rate is 21 percent.
A reduced rate VAT of 10 percent is applied to certain goods and services including ingredients, animals and vegetables used for food products for humans and animals, goods used for agricultural activities, medicines for veterinary purposes, certain healthcare products, (i.e., prescription glasses, prostheses, wheelchairs, crutches, bandages, medical and dental services), purchase, renovation, and repair of property (homes, garages, annexes), transportation of passengers and equipment, etc.
An extra-low rate of four percent is applied to basic foodstuffs such as bread, dairy products, eggs, fruit and vegetables, books, and newspapers. Numerous items previously taxed at this extra low rate are now subject to the full 21 percent.
Some products have total exemption of VAT, like masks, antibacterial gel, and COVID-19 related products.
VAT is not imposed in the Canary Islands, Ceuta and Melilla, but a general indirect tax is imposed in the Canary Islands. This tax ranges from zero percent to a standard rate of seven percent, and the top rate of 20 percent.
Payment terms are usually based on 15-, 30-, 60-, and under certain circumstances, 90-day terms. Common practice in Spain is that large corporations and large retailers negotiate or impose longer payment terms of up to four to six months. Timely reimbursement is also covered by Spanish legislation. The Spanish government has deferred payments in the past.
The current repayment time allowed is:
- Private companies up to 60 days
- Public administrations up to 30 days
- Public works up to 60 days.
The EU also has a “Late Payment Directive” to combat payment delays. All commercial transactions within the EU, whether in the public or private sector, primarily dealing with the consequences of late payment, are covered by Directive 2011/7/EU. Transactions with consumers, however, do not fall within the scope of this Directive.
Directive 2011/7/EU entitles a seller who does not receive payment for goods and/or services within 30 days of the payment deadline to collect interest (at a rate of 8 percent above the European Central Bank rate) as well as 40 euros as compensation for recovery of costs. For business-to-business transactions, a 60-day period may be negotiated subject to conditions. The seller may also retain the title to goods until payment is completed and may claim full compensation for all recovery costs.
Sales Service/Customer Support
Spanish consumers are becoming more demanding when it comes to after-sales and customer service. At the industrial level, service and technical support remains an important competitive factor. After-sales service is a requisite for government procurement.
Customer service is not as developed as it is in the United States; though, the larger department stores and new retailers (usually foreign) have return policies similar to those in the United States. In recent years, customer and end-user organizations have gained ground in their effort to acquire greater protection and fair treatment for consumers. These entities are similar to the Better Business Bureaus. OCU (Organización de Consumidores y Usuarios) is the best organized of these entities.
- OCU, Organización Consumidores y Usuarios
Calle Albarracín, 21
28037 Madrid
Tel: 902 300 187
Fax: 917 543 870
The producer is liable for damage caused by a defect in his product under the EU1985 Directive on Liability of Defective Products. The victim must prove the existence of the defect and a causal link between defect and injury (bodily as well as material). A reduction of liability is granted in cases of negligence by the victim.
Product Safety
The EU General Product Safety Directive requires the producer and distributor to notify the Commission in case of a problem with a given product. The Directive also includes provisions on product recalls, the creation of a European Product Safety Network, and a ban on exports of products to third countries that are not considered safe in the EU.
Legal Warranties and After-Sales Service
From January 1st, 2022, Spain has increased the guarantee of the products. From the current mandatory two years, a legal guarantee of three years will be effective. It has also been agreed to increase the minimum time that manufacturers must provide at the repair level. Instead of the current five years, companies must have spare parts for products they no longer sell for at least 10 years, which will facilitate their repair despite the fact that the product is old.
Local service providers focusing on EU law, consulting, and business development can be viewed on the website maintained by the Commercial Service at the U.S. Mission to the European Union.
It is recommended to acquire local legal advice before entering into any complex business transaction in Spain. A local attorney can guide and assist in the establishment of a subsidiary or a branch, carry out business transactions, represent a company in government contracts or establish residency in Spain.
Please contact Commercial Service in Spain to obtain a list of Business Service Providers. The U.S. Government cannot recommend any particular attorney or professional.
Principal Business Associations
The American Chamber of Commerce in Spain is the main organization that accepts membership from U.S. companies- typically with a presence in Spain- as well as Spanish and 3rd country companies. U.S. companies established in Spain are free to join local organizations, chambers of commerce, sectoral associations, etc.
The American Business Council (ABC) is another membership-based organization in Spain that advocates for U.S. commercial interests. Its members are comprised only of U.S. companies with operations in Spain.
Chambers of Commerce
As mentioned above, the American Chamber of Commerce in Spain and ABC are strong advocates for U.S. firms located throughout the country.
Spain-U.S. Chamber of Commerce – New York. Based in New York, this organization is open to U.S. and Spanish companies.
Spain-U.S. Chamber of Commerce – Miami. Open to U.S. and Spanish companies.
Cámara de Comercio de España (Spanish Chamber of Commerce). Umbrella organization for chambers of commerce located throughout the country. Has close ties to the Spanish Government.
Cámara Oficial de Comercio, Industria y Navegación de Barcelona (Barcelona Chamber of Commerce, Industry and Navigation)
Cámara Oficial de Comercio, Industria y Navegación de Bilbao (Bilbao Chamber of Commerce, Industry and Navigation)
Cámara Oficial de Comercio e Industria de Madrid (Madrid Chamber of Commerce and Industry)
Associations
CEOE (Confederación Española de Organizaciones Empresariales)– Spanish Confederation of Employers’ Associations, is the largest business association in the country, representing approximately two million companies and self-employed entrepreneurs from all sectors and participating in almost all business-related commissions, committees and working groups of the Spanish Public Administration.
Spanish Better Business Bureau – OCU (Organización de Consumidores y Usuarios)
Spanish Franchiser Association
FENIN – The Spanish Federation of Manufacturers, Exporters and Importers of Medical Devices
Spanish Internet Companies Association (ANEI)
Association of Telecommunications Service Providers – ASTEL
Turespana: Spanish Tourism Organization
Agriculture
Spanish Almond Board (SAB) – ALMENDRAVE
Spanish Beef Producers Association – PROVACUNO
Spanish Cereal Trade Association – AECEC
National Cotton Processors Association Center – AITPA
National Federation of Dairy Industries – FENIL
Spanish Egg Producers Association – ASEPRHU
Spanish Food and Drink Industry Federation – FIAB
Grain Marketing-Barcelona Cereal Market – Llotja de Cereales de Barcelona
Oilseed Crushers Association – AFOEX
Spanish Poultry Producers Association – AVIANZA
Spanish Federation for Prepared Foods, for Animals – CESFAC
National Seed Breeders Association – ANOVE
Spanish Timber Trade and Industry Association – AEIM
Spanish White Pork Producers Association – INTERPORC
Limitations on Selling US Products and Services
There are no sectors or services that only Spanish citizens are allowed to own or sell.