In the first quarter of 2024, companies in Spain exported goods valued at €93.43 billion, according to data from ICEX, a public entity in Spain supporting the international expansion of the economy. This figure includes sales to countries outside the European Union (EU) as well as intracommunity transactions within the EU.

This is the second-highest figure ever recorded by ICEX, and the organization’s data shows that exports in September 2024 grew by 2% year over year. International sales made by businesses in Spain are growing rapidly, but there are local factors to consider if you plan to expand your own business abroad. This article will explore the key aspects of international expansion that you need to consider.

What’s in this article?

• Advantages of expanding a business beyond Spain
  
• How to expand a business internationally from Spain
  
• Frequently asked questions (FAQs) about expanding a business beyond Spain
  

Advantages of expanding a business beyond Spain

The Business Competitiveness Observatory on Internationalization of the Spanish Chamber of Commerce states that companies in Spain selling goods abroad gain several significant benefits. In its July 2024 report, based on a survey of over 400 companies in Spain engaged in international sales, the Chamber of Commerce examined the key benefits identified by the respondents. These are three of the most commonly mentioned benefits by the surveyed companies:

• Business growth: The business increased its annual revenue.
  
• Increased business profitability: The business improved its capacity to generate returns on its investments.
  
• Generation of new market opportunities: The business gained additional net sales that would not have been possible without international expansion.
  

Beyond these economic benefits, there are other less obvious—yet equally important—advantages, as noted by the surveyed companies:

• Diversification: Businesses that sell goods abroad are less directly impacted by economic challenges in Spain. For instance, between 2008 and 2013, during one of Spain’s deepest economic recessions, companies that also operated in Germany faced fewer difficulties. This was because the economy in Germany recovered more quickly, achieving rapid growth starting in 2010, with an annual gross domestic product (GDP) increase of 4.1% compared to the previous year.
  
• Reputation: Expanding a business abroad increases brand awareness. Further, consumers generally see companies operating across borders as more stable, which enhances their reputation and builds greater trust among both local and international customers.
  
• Increase in GDP: Higher business profitability benefits not only the company but also the country’s overall economy. For instance, the Business Competitiveness Observatory on Internationalization reports that in 2022, nearly half of Spain’s GDP growth came from foreign operations. In 1975, these operations accounted for just 11% of the GDP in Spain, whereas by 2024, that figure had risen to 42%.
  

With these benefits in mind, it’s no surprise that an increasing number of companies in Spain are choosing to expand internationally. In April 2024, exports by companies based in Spain increased by 15.8% year over year, setting a record high for that month.

How to expand a business internationally from Spain

Before expanding internationally, it is essential to understand the regulations currently in effect in Spain. Royal Decree 1816/1991 sets out legal and regulatory provisions for economic transactions with foreign countries, whether within or outside the European Union. Here is a short overview of the most important articles:

• Article 1: Companies in Spain have the freedom to export to other countries.
  
• Article 3: Certain exports might face restrictions or bans if they significantly harm Spain’s interests. In some cases, obtaining the necessary administrative authorization is enough to proceed with the cross-border operation.
  
• Article 7: Companies in Spain can receive payments in foreign currencies, provided they meet their tax obligations.
  

Apart from the general provisions of this Royal Decree, the applicable regulations in Spain differ depending on whether the business conducts intracommunity supplies (i.e., within the EU) or exports (i.e., outside the EU).

Intracommunity supplies

Although many often use the term “exports” for international sales, some refer to transactions within the European Union as “intracommunity supplies,” and purchases made within the EU are called “intracommunity acquisitions.” The only requirement for conducting these transactions from Spain is to be registered in the Register of Intracommunity Operators (ROI). To do this, you need to submit Form 036 and request an intracommunity value-added tax (VAT) number (also known as a European VAT number or NIF-IVA). To qualify for the corresponding VAT exemption, both the buyer and the seller must have valid intracommunity VAT numbers, and both numbers must be on the invoice for the transaction.

You must report all intracommunity transactions, including both supplies and acquisitions, to the Spanish Tax Agency (AEAT) using Form 349.

Exports

Exports from Spain are VAT-exempt, but there are still some administrative procedures that you must complete when performing them. For example, it’s essential to submit the Single Administrative Document (SAD), which not only serves a customs function but also determines any applicable taxes and duties.

While Form 349 is only for transactions within the EU, some tax forms must be used to report both exports and intracommunity supplies. These include:

• Form 303
  
• Form 390
  
• Form 200
  

Besides adhering to all applicable international trade regulations, you will need to implement a platform that enables your business to accept payments from various countries worldwide. To maximize conversions from international customers, it is essential to select an international payment gateway that supports multiple currencies and the most widely used payment methods in each country, such as Stripe Payments.

Expanding a business globally from Spain: Playtomic’s success with Stripe

Playtomic, a Spain-based platform for booking padel and tennis courts, has successfully expanded its operations, collaborating with sports clubs in over 50 countries. Since partnering with Stripe, Playtomic has exceeded one million active users per month, achieved a 99% payment authorization rate, and reached record monthly revenue of €14.5 million. Pedro Clavería, co-founder and chief strategy officer at Playtomic, said, “It’s about facilitating all players worldwide. Stripe makes it so simple for clubs to take payments from these international players [...] Stripe has been a game changer for our business, helping us accelerate growth. We’ve found a reliable partner in Stripe for our global expansion.”

Frequently asked questions (FAQs) about expanding a business beyond Spain

Which markets are best for businesses in Spain expanding internationally?

The European Union and Latin America are typically best for businesses in Spain looking to expand internationally. France, Germany, Italy, and Portugal are the top four destinations for Spain’s international sales, mainly because intracommunity transactions are simpler and more streamlined than exports. While dealing with Latin American clients can be more complex in terms of taxation, the lack of language barriers simplifies the export of services and digital products compared to many other markets.

Which sectors are most profitable when selling internationally from Spain?

The food, capital goods (such as machinery and equipment used in production), automotive, tobacco, and beverage industries represent the largest share of Spain’s exports, according to a monthly report from the Ministry of Economy, Trade, and Enterprise.

Is there financial support available for expanding a business beyond Spain?

Yes, there is financial support for businesses that want to expand outside of Spain. For example, there are ICEX support programs, which include business internationalization grants. Additionally, businesses can benefit from the Digital Kit, which offers grants that support the digital transformation of a business, such as developing an ecommerce platform.

What are the benefits of expanding an ecommerce business internationally?

Reaching new customer bases and diversifying revenue, as mentioned in this article, are two key advantages of expanding an ecommerce business internationally. It’s important to keep in mind that the digital nature of this business model significantly reduces some of the challenges associated with international expansion. For example, using a payments processor with local acquiring capabilities can enhance the customer experience and lower costs when entering new markets.