Doing business in Spain
Expats may be surprised to find the act of doing in business in Spain a work in progress. The nation has somewhat of a tumultuous past, and only since the post-Franco era have the state-run businesses usually associated with inefficiency and 
over-bureaucracy given way to more modern enterprise and normalised European business ideals.
Expats moving to Spain will still find the working world, like greater Spanish culture, entrenched in tradition; and it follows, that it may take a little time and even more patience to establish a firm foothold in a business environment.
The World Bank ranks Spain 49th (out of 183 economies) in terms of "Ease of Doing Business", and 147th in terms of "Starting a Business"; both positions falling well behind that of many of the country's European neighbours.
Spain only started scaling down their nationalised economy in 1975, and in consequence, much of the country's business culture is rooted in a time gone by.
Hierarchy is paramount. Spanish managers are autocrats of sort, having the authority to make important decisions without consulting their "team" or receiving input from their colleagues. Those in mid- and lower-level positions should show the utmost respect for their seniors, and count on remaining quite separate from their superiors.
Expats coming from nations where personal initiative is expected and rewarded shouldn't put an end to this behaviour, but nonetheless, should be wary of undermining authority.
Furthermore, control is a central part of the Spanish business ethos. Locals prefer to avoid uncertainty, even at the cost of longer periods of deliberation and less frequent decision-making.
Expats living in Spain should also note that a strong emphasis is placed on personal pride, social status and character attributes. In many cases these factors carry as much weight as an individual's technical excellence and professional experience. A successful businessman will be not only be well-dressed, dignified and honourable, but also good company and entertaining.
Face-to-face meetings in Spain form the foundation of business relationships; expats should anticipate engaging on this level with their clients, rather than in writing or by telephone. Keep these interactions personal, but formal.
Lastly, do keep in mind that Spain's business culture is slowly shifting. Those of a younger generation may uphold slightly different ideals and subscribe to more egalitarian pratices.
The act of starting a business in Spain still comes wrapped in red tape, and consists of ten procedures that take an average of nearly 50 days to complete. Furthermore, failure rates are high, and expats fixed on setting up shop should be sure to conduct adequate market research prior to beginning the process.
Additionally, apart from the expat-concentrated areas of Costa del Sol and Costa Blanca, it's essential to speak and understand Spanish fluently.
Business language: Spanish, while some large corporates and multinationals may do business in both English and Spanish, do not expect English to be spoken as the de facto language of the working world.
Hours of Business: Highly-variable, very generally offices open at 9am and close mid-evening, with two hours set aside for lunch in the early afternoon.
Dress: formal, conservative and of high-quality. Dark or linen suits with white shirts and silk ties for men, and modest dresses and tailored suits (including pant suits) for ladies. Brand names and designer labels are noted approvingly.
Gifts: not expected, but appropriate at the conclusion of successful negotiations and at Christmas time. If the recipient of a gift, open it in front of the giver. Gifts should be of high-quality.
Gender equality: Fully equal, with no form of gender discrimination, BUT Spain is traditionally a male-dominated society and only recently have women started to assume mid to senior level management positions in anything but family businesses.
over-bureaucracy given way to more modern enterprise and normalised European business ideals.Expats moving to Spain will still find the working world, like greater Spanish culture, entrenched in tradition; and it follows, that it may take a little time and even more patience to establish a firm foothold in a business environment.
The World Bank ranks Spain 49th (out of 183 economies) in terms of "Ease of Doing Business", and 147th in terms of "Starting a Business"; both positions falling well behind that of many of the country's European neighbours.
Business culture in Spain
Spain only started scaling down their nationalised economy in 1975, and in consequence, much of the country's business culture is rooted in a time gone by.
Hierarchy is paramount. Spanish managers are autocrats of sort, having the authority to make important decisions without consulting their "team" or receiving input from their colleagues. Those in mid- and lower-level positions should show the utmost respect for their seniors, and count on remaining quite separate from their superiors.
Expats coming from nations where personal initiative is expected and rewarded shouldn't put an end to this behaviour, but nonetheless, should be wary of undermining authority.
Furthermore, control is a central part of the Spanish business ethos. Locals prefer to avoid uncertainty, even at the cost of longer periods of deliberation and less frequent decision-making.Expats living in Spain should also note that a strong emphasis is placed on personal pride, social status and character attributes. In many cases these factors carry as much weight as an individual's technical excellence and professional experience. A successful businessman will be not only be well-dressed, dignified and honourable, but also good company and entertaining.
Face-to-face meetings in Spain form the foundation of business relationships; expats should anticipate engaging on this level with their clients, rather than in writing or by telephone. Keep these interactions personal, but formal.
Lastly, do keep in mind that Spain's business culture is slowly shifting. Those of a younger generation may uphold slightly different ideals and subscribe to more egalitarian pratices.
Starting a business in Spain
The act of starting a business in Spain still comes wrapped in red tape, and consists of ten procedures that take an average of nearly 50 days to complete. Furthermore, failure rates are high, and expats fixed on setting up shop should be sure to conduct adequate market research prior to beginning the process.
Additionally, apart from the expat-concentrated areas of Costa del Sol and Costa Blanca, it's essential to speak and understand Spanish fluently.
Doing Business in Spain: Fact Facts
Business language: Spanish, while some large corporates and multinationals may do business in both English and Spanish, do not expect English to be spoken as the de facto language of the working world.
Hours of Business: Highly-variable, very generally offices open at 9am and close mid-evening, with two hours set aside for lunch in the early afternoon.
Dress: formal, conservative and of high-quality. Dark or linen suits with white shirts and silk ties for men, and modest dresses and tailored suits (including pant suits) for ladies. Brand names and designer labels are noted approvingly.
Gifts: not expected, but appropriate at the conclusion of successful negotiations and at Christmas time. If the recipient of a gift, open it in front of the giver. Gifts should be of high-quality.
Gender equality: Fully equal, with no form of gender discrimination, BUT Spain is traditionally a male-dominated society and only recently have women started to assume mid to senior level management positions in anything but family businesses.
Do's and Don'ts of business in Spain
- Do - have business cards printed, one side in English and one side in Spanish. Present the cards Spanish side up upon arrival, along with a handshake, eye contact and a warm greeting.
- Don't - fall for the 'manana' (tomorrow) stereotype. While southern Spain may canter at a calmer pace, in northern Spain deadlines are adhered to and punctuality is expected.
- Don't - expect to start negotiating at the beginning of a meeting. The Spanish like to establish a formal, but personal environment before engaging in business transactions. Similarly, when dining with colleagues or clients, only speak business if invited to of if it has been established the purpose of the meal is to discuss work.
- Do - try and schedule appointments for mid-morning, as business hours vary in Spain and this is the time slot when availability is most common.
- Don't - be surprised if you find your personal space compromised. Spaniards like to stand close, and moving away can be taken as an offence.
