Spain business travel information

Doing business in Spain

According to the World Bank, Spain has the ninth largest economy on a worldwide base and the fifth largest in Europe. It is also the third largest world investor.

The centre-right government of former prime minister José María Aznar had worked successfully to gain admission to the group of countries launching the euro in 1999. Unemployment stood at 7.6% in October 2006, a rate that compared favorably to many other European countries, and especially with the early 1990s when it stood at over 20%. Perennial weak points of Spain’s economy include high inflation, a large underground economy, and an education system which the Organisation for Economic Co-operation and Development reports place among the poorest for developed countries, together with the United States and UK.

However, the property dream that had begun building from 1997, fed by historically low interest rates and an immense surge in immigration, imploded in 2008, leading to a rapidly weakening economy and soaring unemployment. By the end of May 2009 unemployment had already reached 18.7% with a rate of even 37% for youths.

The Spanish economy had been credited for having avoided the virtual zero growth rate of some of its largest partners in the EU. In fact, the country’s economy had created more than half of all the new jobs in the European Union over the five years ending 2005, a process that is rapidly being reversed. The Spanish economy had been until recently regarded as one of the most dynamic within the EU, attracting significant amounts of foreign investment. During the last four decades the Spanish tourism industry has grown to become the second biggest in the world, worth approximately 40 billion Euros, about 5% of GDP, in 2006.

More recently, the Spanish economy had benefited greatly from the global real estate boom, with construction representing an astonishing 16% of GDP and 12% of employment in its final year. According to calculations by the German newspaper Die Welt, Spain had been on course to overtake countries like Germany in per capita income by 2011. However, the downside of the now defunct real estate bubble was a corresponding rise in the levels of personal debt; as prospective homeowners had struggled to meet asking prices, the average level of household debt tripled in less than a decade. This placed especially great pressure upon lower to middle income groups; by 2005 the median ratio of indebtedness to income had grown to 125%, due primarily to expensive boom time mortgages that now often exceed the value of the property.

In 2008 and 2009 the credit crunch and world recession manifested itself in Spain through a massive downturn in the property sector. Fortunately, Spain’s banks and financial services avoided the more severe problems of their counterparts in the USA and UK, due mainly to a stringently enforced conservative financial regulatory regime. The Spanish financial authorities had not forgotten the country’s own banking crisis of 1979 and an earlier real estate precipitated banking crisis of 1993. Indeed, Spain’s largest bank, Banco Santander, took part in the UK government’s bail-out of part of the UK banking sector.

According to Spain’s Finance Minister, “Spain faces its deepest recession in half a century”. Spain’s government forecasted the unemployment rate would rise to 16% in 2009, others even predicted a percentage of 20.

Product tip: There are also nice looking laptop bags on the market! A laptop bag doesn’t have to be a dull conservative black bag. There are lot’s of great looking bags on the market these days. Special laptop bags with the protection that is needed for your laptop but also with nice designs in models and materials.

In case of emergencies

Before you go on your business trip to , Spain you should always get a travel insurance with a complete coverage.

Make sure your health care insurance is sufficiently covered.
Maybe this is already covered in your regular health care insurance but often you will need to cover this with the travel insurance. Also a good travel insurance should cover the costs of travel for a relative in case of seriously illness or an accident.

The business trip travel insurance should also cover the costs of search, rescue and repatriation.
When you go on business trips on a regular basis, the easiest way to get insured is with an annual multi-trip insurance.

Keep in mind that you can also use this insurance for your pleasure trips so don`t forget to include to insure your leisure activities.

The 112 service is in Spanish, but in tourist areas is also offered in English, French and German.

Business Etiquette and Protocol

If your are planning a business trip to Spain it is a good idea to know at least a little about the culture and etiquette in Spain. Use these business etiquette tips as a guideline only. There are too many social, personal and business nuances in Spain to be considered. There is no uniform approach possible for all occasions.
For more in-depth information I suggest you buy and read the "Global Business Etiquettes" book.

• Communication:
  Use formal names, professional and academic titles. Remember that hierarchy is important
  The Spanish are not direct, they prefer subtlety to directness.
  People might interrupt you while talking. It is a sign that that person is interested in what you say.
  Dress formal and conservative.
  


• Meetings and negotiations:
  When making appointments use the 24-hour clock time format to avoid misunderstandings.
  Be very punctual, if you suspect you will late, call and explain the situation.
  Never cancel a meeting at the last minute.
  Shake hands with everyone upon arriving at the meeting and leaving.
  Remain standing until invited to sit down or others do so.
  Agenda’s are used but usually not strictly followed.
  First appointments are more socially oriented but still formal, Spaniard’s would like to know you a bit better at first.
  Keep your presentation as short as possible, to the point, accurate and precise, do not exaggerate.
  Follow up a meeting with a letter or an e-mail with all agreements outlined.
  


• Table manners:
  If unsure on how to behave, mimic the behavior of others.
  Wait until you are appointed a seat.
  Avoid alcohol if possible, otherwise drink little.
  If making a toast, stand up.
  Put a napkin on your lap, eat not too much but finish your plate.
  Keep your hands above the table when eating.
  After finishing your plate lay your knife and fork parallel on your plate with the handles to the right.
  Thank your host at the end of the meal.
  

Some phrases in Spanish

Spanish or Castilian is a Romance language in the Ibero-Romance group that originated in northern Spain and gradually spread in the Kingdom of Castile, evolving into the principal language of government and trade in the Iberian peninsula. It was taken most notably to the Americas as well as to Africa and Asia Pacific with the expansion of the Spanish Empire between the fifteenth and nineteenth centuries.

Only 5% of those over the age of 25 have an advanced level of English. So be sure to know if you need an interpreter.

Also some Spanish phrases can always come in hand....

How are you?	¿Cómo está usted?
I’m fine, thanks. And you?	Bien gracias, ¿y usted?
What’s your name?	¿Cómo se llama Usted?
My name is ...	Mi nombre es ...
Pleased to meet you	Mucho gusto Encantado
Good morning	Buenos días
Good afternoon/evening	Buenas tardes
Good night/evening	Buenas noches
Goodbye	Adiós
Cheers/Good health!	¡Salud!
Bon appetit	¡Buen apetito!
I don’t understand	No comprendo
Please write it down	¿Puede escribirlo, por favor?
How do you say ... in Spanish?	¿Cómo se dice ... en español?
Excuse me	¡Perdone!
How much is this?	¿Cuánto cuesta esto?
Thank you	Muchas gracias
You’re welcome	De nada
Where’s the toilet?	¿Dónde están los sanitarios?
Yes / No	Sí / ¡no!