2. FDI STRATEGY AWARDS
2016
30 www.fDiIntelligence.com December 2016/January 2017
IN THE INAUGURAL fDi STRATEGY AWARDS 2016, BARCELONA’S INVESTMENT
PROMOTION AGENCY HAS TAKEN TOP HONOURS, WITH AWARDS GOING TO
CITIES ALL OVER THE WORLD FOR THEIR EFFORTS TO PROMOTE, ATTRACT
AND RETAIN INVESTMENT. CATHY MULLAN REPORTS
Strategy Awards 2016
Winners
IPAoftheYear
The City Council of Barcelona has been
named as our IPA of the Year in the inau-
gural fDi Strategy Awards 2016. The city
offered the judging panel a well thought
outandclearlydefinedstrategy,marrying
the clever use of technology and urban
planning strategies with overall promo-
tion effectively. The city’s successful FDI
record is testament to these efforts, with
the support of a top-class regional agency,
Catalonia Trade & Investment. During a
time when FDI flows to Europe have been
in decline, both Barcelona and wider
Catalonia have seen increases.
Trade missions, networking events
and a sense of community engages the
agency with investors at every stage of the
process, while practical assistance for
companies is a standard offering.
Expatsupport
Amsterdam, Netherlands (Amsterdam
Inbusiness)
The city’s Expatcenter aims to meet the
needs of international companies and
their expatriate employees, including
providing a single point of contact for all
practical information.
Brno, Czech Republic (Brno City
Municipality)
The city’s Expat Centre helps foreign
professionals working and living in the
city, providing information and consul-
tancy services.
Chinastrategy
Edinburgh, UK (City of Edinburgh Council)
Edinburgh has a strategic alliance with
Shenzhen, and provides incubator space
in the city for investors from Shenzhen,
with a reciprocal facility in China for
investors coming from Edinburgh.
Manchester, UK (Manchester Investment
and Development Agency Service)
The city is engaged in the Manchester
China Forum in order to build links with
the Chinese market, efforts that have
been bolstered by the Beijing
Construction Engineering Group’s work
on the city’s airport, securing links to
Hong Kong.
Nottingham, UK (Nottingham City
Council)
Nottingham City Council operates an
office in Ningbo, which has been identi-
fied as a target area for attracting invest-
ment. Trade delegations have been sent
to China to promote this strategy.
Chicago, US (World Business Chicago)
The city’s China strategy has generated a
memorandum of understanding, mak-
ing Chicago the US FDI gateway for sev-
eral Chinese cities, including Beijing,
Shanghai and Tianjin. World Business
Chicago also has an office in China.
Indiastrategy
Manchester, UK (Manchester Investment
and Development Agency Service)
Manchester’s India Steering Group was
established to leverage opportunities
and build links with the Indian market.
Nottingham, UK (Nottingham City
Council)
Nottingham City Council has office
space in Chandigarh, while also sending
trade delegations to India.
Performancemanagement
Barcelona, Spain (City Council of
Barcelona)
In addition to workshops and roundta-
ble gatherings to improve staff’s profes-
sional skills, employees at the City
Council of Barcelona are encouraged to
attend regular industry seminars and
events. Barcelona’s Information Systems
Institute allows management to meas-
ure and track personal performance and
development goals.
Out in front: Barcelona is our IPA of the Year, and also takes our performance management award

3. ISLANDS OF
OPPORTUNITY
Hungary will not have Europe’s lowest corporate
tax rate in 2017: the Canary Islands will
After the surprising announcement by
Hungarian Prime Minister Viktor Orbán
last month about slashing the country’s
corporatetaxratesfrom19%to9%–even
lower than the 10% found in Bulgaria, or the
12.5% applied in Cyprus and Ireland – it is said
that Hungary will have the lowest corporate
tax rate in the EU. The Eastern European coun-
try will no doubt climb the business-friendly
tax systems ranking should this measure
materialise in 2017. Nonetheless, the title of
‘lowest corporate tax rate in the European
Union’ goes in fact to the Canary Islands, an
ultra-peripheral Spanish region, so far most
popular as a tourist destination thanks to its
unique climate and varied landscapes.
A recent piece of legislation passed late in
2015 – the Economic and Fiscal Regime,
approved and backed by the EU – has granted
the Canary Islands, special status allowing for a
4% corporate tax rate, among other appealing
incentives that can be mixed and matched for
a somewhat unprecedented benevolent tax
framework for companies in Europe.
Tax-free dividend distribution to share-
holders, further tax bonuses of up to 50% for
manufacturing activities and low VAT rates
(7%) are some of the advantages this newly-
minted tax regime is offering investors.
The EU’s fresh stamp of approval on the
fiscal framework has sparked several institu-
tional initiatives to raise awareness and build
international relevance.
Hence, the authorities of this Spanish
region, accustomed to welcoming a large
expatpopulation(372,000in2015),andwitha
buoyant production and recording industry
that has been home to, for example, the film-
ingoftheJasonBournesagaandFast&Furious
6, are positioning themselves as a business-
friendly group, willing to make things easy for
foreign investors.
PERFECT SETTING
“Not only is our strategic geopolitical situa-
tion an advantage for anyone wanting to do
business in the EU, Africa or the Americas,”
says presidentofthe Canary IslandsFernando
Clavijo. “With the latest improvements to the
Economic and Fiscal Regime, we offer an
unparalleled setting for companies wanting
to operate in Europe while having interna-
tional reach. What we are proposing to inves-
tors is unique and cannot be found elsewhere
in the EU.”
In office since 2015, Mr Clavijo has made
FDI attraction a clear priority. “We are certain
that FDI will bring significant growth to the
region, and we are willing to work together
with companies from all over the world to help
them set up in the Canary Islands,” he says.
“Our vision is to become a leading business
hub in the coming years.”
Can a Spanish ultra-peripheral region
become ‘a leading business hub’ in Europe?
The answer seems to be yes. While it is true
that the Canary Islands are first and foremost a
tourist destination, having received more than
of13milliontouristsin2015,thecurrentinter-
nationalisation strategy shows a clear under-
standing of the wide array of factors that must
be put in place.
STRONG OFFERING
“We know it is not only about the tax regime,”
says one representative of the region’s eco-
nomic council. “We have a long-term strategy
based on leveraging our assets: easiness for
attractingtalent–forexample,someofourcit-
ies are often cited as the best destinations in
the world for digital nomads – and great infra-
structure (we have six international airports
and 26 commercial ports), a strong telecom-
munications infrastructure, best-in-class
healthcare system, two major universities and
close to 40 bilingual schools. Very competitive
costs and low employee turnover are also
main strong points.”
The special status granted by the EU is
designed not to make the Canaries a tax
haven, but a home for international talent and
business. To be eligible for the special rates
andbonuses,companiesmustinvestbetween
€50,000 and €100,000, and create between
three and five jobs.
An official institution has been put in
chargeoffosteringFDI.PROEXCA(www.canar-
yislandshub.com), the local investment pro-
motion agency, works with the authorities
responsible for providing the authorisations to
operate in the Canary Islands Special Zone,
and claims the process is painless, quick, and
easy. It seems the government of the Canary
Islands is set to have investors getting sand in
their shoes building the European California.
“WE OFFER AN UNPARALLELED
SETTING FOR COMPANIES
WANTING TO OPERATE IN
EUROPE WHILE HAVING
INTERNATIONAL REACH”
Sponsored by
SPOTLIGHT ONTHE CANARYISLANDS
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