Latin America is a logical investment territory for Spain. The Latin American countries share history, culture, and language with the Iberian country. Besides, the population of the region almost doubles that of the United States.
According to a report by IE University, Spanish companies will increase their investment in the region by 76%. In 2018, the investment was € 9,662 million, according to data from the Ministries of Industry, Trade, and Tourism, 15% of total foreign investment. In terms of telecommunications, Spanish companies dominate the region.
Among the Latin American countries with the highest growth expectations, Chile, Peru, and Colombia stand out in the list. However, the different migration policies of each country can stop internationalization processes. Employee Mobility Solutions (EMS) has analyzed some keys for talent mobility between these countries.
This Andean country is one of the most attractive destinations for Spanish investment, as it is a safe place to hire employees. However, the processes are usually slow due to the lack of automation. Another barrier for Spanish businesspeople is the distrust of some owners when it comes to transferring properties to foreign citizens. EMS proposes a system of support as a network that serves as a guarantee for new foreign citizens who settle in the country to solve this problem. Among the sectors most in demand in the country are financial services (26%), telecommunications (21%) and extraction of oil and natural gas (15%).
Investment has grown in recent years in this country, also causing a flow of foreigners, although they still do not represent more than 1% of the total population. Among the shortcomings that this country still has is the lack of infrastructure and general sensitivity to receive them. The migration regulations of Colombia are stringent and not very flexible. Unlike Peru, the real estate offer is extensive, but very expensive and lacking in infrastructure, which makes them less important than other destinations. Also, taxes are very high for employees. This fact slows down competitiveness and increases labor costs to attract foreigners.
The political and economic stability, as well as the security conditions that the Chilean country projects have made it one of the preferred destinations for doing international business. The programming and consulting activities, as well as financial services and construction, are the most required in this southern cone country. There is a real estate boom in Chile due to economic stability, but the cost of housing is still high for foreigners.
Ana Gazarian, CEO of EMS, argues that “each country has special legislative characteristics and migratory processes that can be very complex. It is crucial to know local experts to help us process employee mobility in the most effective way, especially in countries in constant growth and change, which continue to be a great opportunity for Spanish companies. ”