Everything you need to know about doing business in Europe.
Compiled by Metropolitan Media
Barcelona
Map
Overview
The city of Barcelona is located in the north-eastern region of Spain, facing the Mediterranean Sea, and 130km south of the Franco-Spanish border. The urban area is home to 1.6 million people, and over 4.15 million live in the greater metropolitan area, making it the second largest and most populated city in Spain, after the capital city of Madrid.
Barcelona covers a total area of 101 km2, and is divided into 10 sub-districts, each with a separate governing council. It is recognised as a global city, and has a long cultural and historical past, with several places of importance being listed as UNESCO world Heritage sites, such as the architecture of the Park Güell, which was designed by Antoni Gaudi. Spain is a member of the World Trade Organization, and the European Union. It uses the euro (EUR) for its currency, which replaced the Spanish peseta (ESP) in 2002.
Economy
The tertiary sector plays an integral role in the economy of Barcelona, and it is also the sector which provides the most jobs in the city. Major industries include financial and private banking services, IT, telecommunications and biotechnology. But unlike many other major European cities, Barcelona has a diverse economic structure with the industrial sector still remaining of central importance to the economy, providing over a fifth of Spain's total industrial output. The textile sector is still prominent in Barcelona, although it has declined in strength over the past century. Barcelona enjoys a large amount of foreign investment, with more than 3,100 foreign businesses located in the city.
The Port of Barcelona covers 7.8km2, connects to 825 worldwide ports, and deals with over a quarter of Spain's total exports. Major exports include chemicals, machinery, medicines and foodstuffs. The largest export partners are France, Germany and Portugal. It also accommodates large cruise liners, and brings an estimated 700,000 passengers to the city annually.
Infrastructure
Barcelona International Airport is located 17km away from the city centre. It operates frequent flights to many European cities, along with several flights to international destinations such as New York, Singapore, Tel Aviv and Canada. The airport currently handles 27 million passengers annually, but with a €5.1 billion refurbishment and extension plan underway the airport will be able to accommodate 50 million passengers annually.
The majority of the public transportation systems in Barcelona are operated by the Transports Metropolitans de Barcelona (TMB), who offer a network of metro, bus and tram routes. There are an extensive number of bus routes throughout the city, which allow both commuters and tourists to travel around easily. The metro system is currently being extended, and when completed it will be the second largest underground line in the world. Barcelona also has funicular and aerial cable cars which allow convenient transport to Tibidabo and Montjuic castle. Several train operators run services in the city, such as AVE high speed rail, Renfe, and FGC. Barcelona Sants is the largest railway station in the city and has a large selection of domestic routes and frequent services. Modern freeways serve the country and allow easy access to the neighbouring countries of France and Portugal.
The energy infrastructure for Barcelona is also stable, after years of developing and expanding on energy programmes. A mixture of hydroelectricity which comes from the Pyrenees mountains, and nuclear power, supplies Barcelona with its electricity needs. A natural gas terminal was recently built at the Port of Barcelona, which allows for natural gas to be more readily stored and transported throughout the city.
Local workforce
Barcelona is a multicultural city, with 13% of the population originating from a country outside of Spain. The official language is Spanish, while a large percentage of residents understand the Catalan dialect, which is a co-official language in the region. English is spoken in many tourist establishments, and is taught in all secondary schools. Most of the labour force work within the service sector.
The city of Barcelona offers a large selection of public and private higher educational institutes. The university of Barcelona was founded in 1450, and has several campuses located in the city centre with over 60,000 students enrolled in its degree programmes. Several prestigious business institutions, such as the ESADE business school and the IESE business are located in the city. There are also 24 international schools, many of which teach classes in English. The high quality educational system, and the large amount of money invested into developing and strengthening existing institutions, help produce a highly skilled workforce.
Business costs
Individual taxation rates are set on three different levels: federal, municipal and cantonal. Any individual earning less than €17,707 is required to pay 24% tax on their earnings. The largest tax bracket is 43% of all income, and applies to individuals generating more over €53,407 per annum. Corporate tax rates are set at 30%, with special reduced rates of 25% available for 'small or medium' businesses that earn less than €120,202 per annum. VAT rates are increasing in July 2010, but still remain comparitively low, with a flat rate of 16% (increasing to 18%) and a reduced rate of 8% (increasing to 9%) available for special goods.
Office rental costs within the city are very competitive, and much lower than cities such as Milan, Zurich, Moscow and New York. With the average office rental cost in the CBD being $41.58 per square foot per year, this is also lower than the capital city of Madrid, where rentals cost an average $59.49 per square foot per annum (Cushman & Wakefield 2010). The cost of living is also low; Barcelona currently stands at 31st place on the Mercer Human Resource Report, for the list of most expensive cities in the world.
Barcelona's thriving economy, skilled workforce and strategic positioning with easy access to European markets, make it a stable platform for foreign investments and new business start-ups alike.
