Market insights: The view from Spain

Spanish interpreneurs are noticeably less confident than many of their peers around the world. Yet they still gave the current climate for international business expansion a positivity score of 7.3 out of 10, and 60% said they expect the overall environment to become more favourable looking ahead. Just over a third (35%) said it is easy for businesses to expand overseas today, but half (50%) think it is difficult.

Despite the challenges, respondents in Spain noted that there are strong reasons to go global. Today, 60% said market growth opportunities were a primary motivator (up from 48% in 2024), and 46% cited gaining competitive advantage as a major driver (up from 37% two years ago).

On some fronts, Spanish businesses expanding abroad have fared reasonably well amid global turbulence. Just one in six (17%) said that dealing with economic volatility, including currency fluctuations, inflation and or low growth, was a challenge during the international expansion process (which was the top issue for interpreneurs globally at 38%). Less than half (46%) reported that tariffs or trade disputes significantly impacted their global strategy in the past one to two years (compared to 57% globally).

However, their resilience against (or inclination to harness) disruption in other forms is not so clear: it’s worth noting that AI is also having less of an effect on strategy than the global average, with 58% categorising its impact as significant (versus 74% globally). In a related finding, gaining access to digital technologies and innovation is less of a driver for international expansion than it is in other countries — just 23% said so (compared to 40% globally).

Sustaining cross-border team cohesion and hiring and retaining employees who fit the company culture are the biggest challenges when it comes to maintaining organisational culture amid international expansion (at 37% apiece). However, respondents were much less concerned about issues such as differences in management or leadership expectations, and communicating culture consistently across countries (20% apiece).

Spain has a business sector with a strong focus on exports and a growing presence in international markets. The impact of tariffs and trade disputes has become structural. Market selection is no longer just a business decision, but also a risk management decision with direct tax implications — ranging from transfer pricing reviews to the analysis of double taxation treaties.

It is not surprising that 37% identify international taxation as their main operational challenge, and that the tax policies of the destination country are now the second most important factor when choosing a market.

The implementation of OECD Pillar 2 and the widespread tightening of the BEPS framework are forcing Spanish companies to adopt a proactive, rather than reactive, approach to international tax planning.

Companies that strengthen their international tax and legal architecture will be best positioned to capitalise on momentum when it arrives.

Elena Ramírez Marín
Partner, Kreston Iberaudit