In this sense, it is essential to focus on the current macroeconomic situation and structural reforms of competitiveness, which are closely connected with the market accessibility. Economic development is driven, primarily, by investment, followed by private consumption; moreover, some of the structural reforms mentioned have a remarkable impact in the investment policy, such as the Reforms of the Public Sector (Fiscal consolidation at all levels of Public Administration), the Financial System (Restructuring process completed in 2013), the Labour Market, Fiscal rates (tax rate on corporate income was approximately 25% in 2016), and Fiscal Incentives.
In Spain, we may also identify some Institutions that promote incentives in different calls along the year, and a tax system established for international corporate investment, summarized in the next aspects:
1.\tA tax rate on corporate income (28% for tax year 2015, and 25% in 2016).
2.\tReduced corporate tax rate (15%) for companies established on or after January 1, 2013. The reduced rate will be applicable for the first two years that the company is generating profit.
3.\tAn attractive allowance and deduction system in corporate tax (20.1% rate).
4.\tParticipation Exemption system: dividends or profit participation from business activities carried on abroad through subsidiaries or branches and the gains obtained from the transfer of these securities are tax exempt in Spain if the Spanish company holds a participation of at least 5% in the non-resident company.
5.\tTax incentive for foreign workers: fixed rate of 24% (maximum of 600,000.-€).
In this regard, the Foreign Securities Holding Companies figure (in Spanish, ETVE) owns a Special Tax Regime applicable to Holding companies:
a)\tNo taxation on paid-in dividends.
b)\tNo taxation on paid-in capital gains.
c)\tNo taxation on paid-out dividends/gains.
d)\tStable and reliable regime.
e)\tWide tax treaty network (88 treaties to avoid double taxation).
To finish, we cannot forget that the Spanish economic, legal, and political structures integrate regional and local economic, legal and political regulations applicable in the Autonomous Communities, which can make the international investments more attractive depending on the concerns of the concrete foreign investor.