Latin America looks to Spain as a place for investment opportunities

Until some time ago, money mainly traveled from Spain to Latin America, but the journey has changed direction. According to data from Spain Export and Investment (ICEX), Latin America’s investment stock in Spain recently surpassed 86 billion euros after registering a solid increase and adding 20 billion euros in two years. This figure represents an increase of 40% and positions Latin America as the fourth largest investor in Spain, after the United States, the United Kingdom, and France.

This investment boom materialized with 400 new business projects last year from Latin American investors, according to ICEX data. The same reasons that brought investment from Spain to the other side of the Atlantic are the reasons Latin American business people have for investing in Spain: common language and cultures connected by history. Spain also offers market expansion, access to new technologies, and social and political stability. Regarding taxation, the Entidades de Tenencia de Valores Extranjeros (ETVE) is attractive, encouraging the formation of holdings in Spain by providing a 95% exemption for dividends and capital gains from abroad.

Banco Pichincha (Ecuador), the cement company Cemex (Mexico), the footwear brand Havaianas (Brazil), Sidenor (Brazil), Grupo Bimbo (Mexico), and Cristal Glass (Mexico) are among the most relevant investments in Spain in 2022 regarding the amount.

By far, Mexico is the Latin American country leading the investment in Spain with 46.8%. Argentina follows it with 13.7%, Brazil with 9.3%, and Colombia and Venezuela with 8%.

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