Relationships are still very important in selling in Spain, sometimes as important as price or quality, especially in large account sales.

The decision-making process within a Spanish company is different from that in the United States as top executives often make decisions that would typically be made at lower levels elsewhere. These executives act after review by different departments, making the sales process longer. An initial “yes” can mean that the company will study the situation, but not necessarily purchase the product.

Additionally, once the Spanish potential partner of a U.S. firm has agreed to start a commercial relationship, the Spanish company normally expects the U.S. firm to translate all commercial brochures, technical specifications, and other relevant marketing materials into Spanish. Decision makers at the Spanish firm may do business in English with the U.S. firm, but the communication from the U.S. firm to its clients should come in Spanish, if possible, due to an overall lack of public proficiency in English.

Department stores, hypermarkets, shopping centers and very specialized outlets are introducing the customer loyalty concept, including client cards, cumulative discounts and special offers for frequent customers. eCommerce is influencing some traditional segments of the direct marketing sector, such as mail order. Selling techniques are very similar to those in the rest of the Western world.

Trade Promotion and Advertising

Commercial Service Spain’s primary objective is to help small- and medium-sized businesses (SMEs) to enter and expand in the Spanish market. One of our most valuable tools is counseling, including identifying the best possible trade promotion strategies for specific products or services.

Visit Commercial Service Spain’s website or contact our office to learn more about the variety of services available to facilitate U.S. exports to this market and others within Europe.

Commercial Service Madrid has close relationships with the main trade fair authorities, i.e., in Madrid, Barcelona, Valencia, and Bilbao, and actively supports leading trade shows in these cities.

News Media

Spain has more newspapers and magazines per capita than any other European country. However, only 13.6% of Spaniards read the newspaper every day, a number that has been steadily decreasing for the past decade. Despite low readership, newspapers still shape the news agenda and program content of broadcast media. Spanish newspapers tend to have an editorial line that favors a particular political group. (Source: AIMC-EGM as of June 2023)

The main newspapers in Spain are:

• El País – center-left, regarded as the nation’s paper of record.
• El Mundo- centrist/right of center
• ABC – center-right/conservative
• La Razón – center-right/conservative
• La Vanguardia – center-left, (based in Barcelona)
• El Periódico – left-leaning

More than 140 different dailies (mainly local or regional) are published in Spain, plus a dozen supplements. Sports daily newspaper Marca rates as the most popular.

Despite Spain’s having formally recovered from the financial crisis of 2008, Spanish newsrooms still suffer the effects of a downsizing industry, where news consumption shifts from print to online. This trend seems to have stabilized after the pandemic. Newspaper companies have seen their advertising revenues in paper reduced by more than 80%, and all have suffered the impact of fleeing readers that now get their news from the internet, which at 83.7% of users is the leading news medium. Legacy media companies have survived falls in advertising sales with double digit increases in online ad sales. Digital-only platforms, led by El Confidential, have become leading actors in the Spanish news market.  All national dailies have online news sites, most popular among younger audiences.  While these sites have growing readership, online news companies face the challenge of how to monetize their platforms beyond online advertising. Since the first quarter of 2020, all main national newspapers have created pay walls to access their sites.

Major media holding companies own most of the media outlets in Spain, including:

• Grupo Prisa
• Grupo Godó
• Grupo Planeta
• Vocento

Virtually every Spanish home has a television (99.8%) and it is the second most followed media (80.3% of all Spaniards). The average consumption TV time was above 200 minutes/day in 2022, according to last available data. Peak viewing hours are between 2:00-4:00 p.m. and 9:00-11:30 p.m., but in the last 25 years, the primetime in Spain has been delayed one hour, and currently takes place at at almost 11 p.m. 

Television consumption, excluding news, has shifted heavily in the last five years to online content platforms (e.g., Netflix, HBO, and Amazon Prime). The services are now included in basic TV packages offered in Spain through providers.

State-run Radio Televisión Española (TVE 1, TVE 2 and the 24/7 channel TVE24H) and regional stations run by the autonomous governments have been supplemented by several national private commercial broadcast channels (e.g., Antena3, Telecinco, La Sexta, and Cuatro (in order of audience)). A merger between Telecinco and Cuatro was finalized in 2010 and both stations remain on the air. A second merger took place in 2011 between Antena3 and La Sexta in response to the latter’s dire financial situation. Both channels continue to broadcast.

About 53.8% of Spaniards listen to radio every day for almost two hours, mostly on FM channels, and radio remains the most-trusted news medium. Peak listening hours are early in the morning and late at night. Major radio stations and wire news services include: 

Privately owned stations radio stations include:

• Cadena SER: 3.9 million listeners (29.8% market share). Left oriented.
• COPE: 3.2 million listeners (24.4% market share). Right-oriented, conservative, owned by the Spanish Church. 
• Onda Cero: 1.7 million listeners (11.5% market share). Center-right oriented.  

Government-owned station:

• RNE: 0.9 million listeners (6.3% market share)

(Source: EGM)

Publicly owned wire news service:

• Agencia EFE

Privately-owned wire news services:

• Europa Press
• Colpisa
• Servimedia

Pricing

Price is a very important factor in Spain. Although EU member states’ exports to Spain have lower tariffs than those imposed on U.S. goods because of the EU’s common external tariff, the dollar-euro exchange rate, and possible lower production costs, keep U.S. companies competitive with EU exports.

Pricing practices in Spain are like those of the United States, although markups tend to be slightly higher. There is greater transparency in agent and distributor commissions in Europe in comparison with the United States.

Products and services in Spain are subject to Value Added Tax (VAT, or IVA in Spanish). Presently, the general VAT rate is 21%.

A reduced rate VAT of 10% is applied to certain goods and services including:

• ingredients, meat, and vegetables used for food products (humans and animals);
• goods used for agricultural activities;
• medicines for veterinary purposes;
• certain healthcare products, (e.g., prescription glasses, prostheses, wheelchairs, crutches, bandages, medical and dental services);
• purchase, renovation, and repair of property (homes, garages, annexes); and
• transportation of passengers and equipment.   

An extra-low rate of 4% is applied to basic foodstuffs, including:

• bread,
• dairy products,
• eggs,
• fruit and vegetables,
• books, and
• newspapers.

Many items previously taxed at this extra low rate are now subject to the full 21%.

Some products have total exemption of VAT, like surgical masks, antibacterial gel, and COVID-19 related products.

VAT is not imposed in the Canary Islands, Ceuta, and Melilla, but a general indirect tax is imposed in the Canary Islands. This tax ranges from 0% to a standard rate of 7%, with a top rate of 20%.

Sales Service and Customer Support

Spanish consumers are becoming more demanding when it comes to after-sales and customer service. Especially at the industrial level, service and technical support remains an important competitive factor. After-sales service is a requisite for government procurement.

Customer service is not as developed as it is in the United States, though, the larger department stores and new retailers (usually foreign) have return policies similar to those in the United States. In recent years, customer and end-user organizations have gained ground in their effort to acquire greater protection and fair treatment for consumers. These entities are similar to the Better Business Bureaus. Organización de Consumidores y Usuarios (OCU) is the best organized of these entities.

• OCU, Organización Consumidores y Usuarios

Calle Albarracín, 21

28037 Madrid

Tel: (+34) 902 300 187

Fax: (+34) 917 543 870

The producer is liable for damage caused by a defect in its product under the EU’s 1985 Product Liability Directive. The victim must prove the existence of the defect and a causal link between defect and injury (bodily or material). A reduction of liability is granted in cases of negligence by the victim.

Product Safety

The EU General Product Safety Directive requires the producer and distributor to notify the European Commission in case of a problem with a given product. The Directive also includes provisions on product recalls, the creation of a European Product Safety Network, and a ban on exports of products to third countries that are not considered safe in the EU.

Legal Warranties and After-Sales Service

Since 2022, Spain has increased the guarantee of the products. From the current mandatory two years, a legal guarantee of three years is effective. It has also been agreed to increase the minimum time that manufacturers must provide at the repair level. Instead of the current five years, companies must have spare parts for products they no longer sell for at least 10 years, which will facilitate repair of older products.

Local Professional Services

Local service providers focusing on EU law, consulting, and business development can be viewed on the website maintained by the Commercial Service at the U.S. Mission to the European Union.

It is recommended to acquire local legal advice before entering any complex business transaction in Spain. A local attorney can guide and assist in the establishment of a subsidiary or a branch, carry out business transactions, represent a company in government contracts, or establish residency in Spain.

Please contact Commercial Service in Spain to obtain a list of Business Service Providers. The U.S. Government cannot recommend any specific attorney or professional.

Principal Business Associations

The American Chamber of Commerce in Spain is the main business organization accepting membership from U.S. companies, typically with a presence in Spain, as well as Spanish and 3rd country companies. U.S. companies established in Spain are free to join local organizations, chambers of commerce, and sectoral associations.

The American Business Council (ABC) is another membership-based organization in Spain that advocates for U.S. commercial interests.  Its members are comprised only of U.S. companies with operations in Spain. 

Chambers of Commerce

As mentioned above, the American Chamber of Commerce in Spain and ABC are strong advocates for U.S. firms located throughout the country. Other key chambers of commerce include:

• Spain-U.S. Chamber of Commerce - New York.  This organization is open to U.S. and Spanish companies.
• Spain-U.S. Chamber of Commerce - Miami.  This organization is open to U.S. and Spanish companies.
• Cámara de Comercio de España (Spanish Chamber of Commerce). Umbrella organization for chambers of commerce located throughout the country. Maintains close ties to the Spanish Government.
• Cámara Oficial de Comercio, Industria y Navegación de Barcelona (Barcelona Chamber of Commerce, Industry, and Navigation)
• Cámara Oficial de Comercio, Industria y Navegación de Bilbao (Bilbao Chamber of Commerce, Industry, and Navigation)
• Cámara Oficial de Comercio e Industria de Madrid (Madrid Chamber of Commerce and Industry)

Business Associations

• Confederación Española de Organizaciones Empresariales (CEOE)– Spanish Confederation of Employers’ Associations, is the largest business association in the country, representing approximately two million companies and self-employed entrepreneurs from all sectors and participating in almost all business-related commissions, committees and working groups of the Spanish Public Administration. 
• Organización de Consumidores y Usuarios (OCU or Spanish Better Business Bureau)
• Spanish Franchiser Association
•  Spanish Federation of Manufacturers, Exporters and Importers of Medical Devices (FENIN)
• Spanish Internet Companies Association (ANEI)
• Association of Telecommunications Service Providers (ASTEL)
• Turespana (Spanish Tourism Organization)

Agricultural Associations

• Spanish Almond Board (ALMENDRAVE)
• Spanish Beef Producers Association (PROVACUNO)
• Spanish Cereal Trade Association (AECEC)
• National Cotton Processors Association Center (AITPA)
• National Federation of Dairy Industries (FENIL)
• Spanish Egg Producers Association (ASEPRHU)
• Spanish Food and Drink Industry Federation (FIAB)
• Grain Marketing-Barcelona Cereal Market – Llotja de Cereales de Barcelona
• Oilseed Crushers Association (AFOEX)
• Spanish Poultry Producers Association (AVIANZA)
• Spanish Federation for Prepared Foods for Animals (CESFAC)
• National Seed Breeders Association (ANOVE)
• Spanish Timber Trade and Industry Association (AEIM)
• Spanish White Pork Producers Association (INTERPORC)

Limitations on Selling U.S. Products and Services

There are no sectors or services where only Spanish citizens are allowed to own or sell. There are some restrictions on public procurements by non-Spanish registered entities (see Public Procurements).