Why Spain Could Be Your Next MedTech Investment Destination
Overlooked but brimming with potential, the Spanish MedTech scene offers investors abundant opportunities. Historically, the industry faced a funding gap, especially in later-stage rounds crucial for scaling up. However, this gap is precisely where foreign venture capitalists can make their mark.
A Global Player in Scientific Output
Spain ranks 12th globally and 5th in Europe for scientific output. In an era of transformative healthcare technology, Spain's MedTech sector stands out as a beacon of innovation. With robust infrastructure, a dedication to cutting-edge diagnostics, and a thriving research culture, Spain is redefining patient care and fostering medical progress. From reimagining diagnostics to enhancing patient outcomes, Spain's MedTech landscape promises efficient, effective, and patient-centric healthcare.
Why Invest in Spain?
Digital Nomad-Friendly: Spain ranks among the top 20 digital nomad destinations globally, attracting talent from around the world.
Cost-Effective: Labour costs average 23.5€ per hour, significantly more affordable than other European countries and the US.
Quality of Life: Spain's inviting climate and high quality of life are factors entrepreneurs consider when choosing the country as their preferred destination for new businesses.
Thriving Startup Ecosystem: Barcelona and Madrid, part of Europe's 'Top 6' startup ecosystem hubs, are driving innovation and cultivating successful businesses.
Spain’s 2022 Startup Law – An Investor’s Opportunity
The newly enacted Startup Law of December 2022 introduces tax and labour incentives, attracting investment and top talent.
Boosted Stock Options: The annual tax-exempt limit for stock options increased from €12,000 to €50,000, positioning Spain as a leader in stock options in Europe.
Extended Residency: A new visa category extends initial residence permits to 3 years, possibly up to 5, appealing to digital nomads, investors, and entrepreneurs.
Tax Regime: Foreign investors and entrepreneurs enjoy a friendlier tax regime, with non-resident Income Tax reduced from 25% to 15%.
Foreign Investment on the Rise
Recent trends indicate an increasing appetite among foreign investment funds for early-stage funding rounds in Spain's MedTech sector. In Q1 2023, both foreign and local investments witnessed a surge compared to the previous quarter, notably gravitating towards early-stage funding rounds, especially those in the 1 to 5 million euros range. While this shift is promising, there remains a critical need to address the funding gap in later stages, where substantial investments are crucial for sustainable growth.
Intrigued by Spain's MedTech potential? Check our most recent report, “The Spanish AI-Driven MedTech Market - November 2023”