BYD and opportunities for foreign suppliers in Spain: A strategic guide to investment

Published on 16 October 2025

BYD’s plans for a third European plant in Spain are creating new opportunities for the automotive industry. International suppliers now have the chance to establish themselves in the electric mobility value chain in Spain at an early stage. However, legal and tax hurdles must be carefully navigated.

Nadja Vietz Abogada / Rechtsanwältin / Attorney (WA) +34 93 487 58 94

Spain scores highly with its excellent logistical position and competitive subsidy system. Anyone wishing to invest in Spain must understand the regulatory processes, particularly the control system for foreign direct investment (FDI screening).

Investments in strategic areas such as energy, transport or defense require prior approval from the Spanish government. In addition, there are complex environmental, construction, and work permits at the regional level, the procedures for which vary depending on the autonomous community.

Spain offers interesting tax opportunities: ETVE companies for foreign investments, tax groups, and special research and development subsidies in the electric mobility sector are available.

It is crucial to link industrial strategy with corporate and tax planning from the outset. Companies that develop the right structures now can benefit from the growing European electric ecosystem in the long term – and Spain will play a key role in this.