News & Articles Hub

Doing Business in Spain: What UK Businesses Need to Know

HGA Takeaway

Doing Business in Spain: What UK Businesses Need to Know

Spain is a sizeable and growing market for British businesses, but success isn't simply about finding customers. Understanding how business is actually done, building relationships and choosing the right route into the market can make all the difference.

     

Spain might feel like a familiar market, but doing business there successfully requires more than simply translating your website into Spanish and finding a distributor.

The relationship between the UK and Spain is already significant. Total trade between the two countries reached £68.3 billion in 2025, up 6.9% on the previous year, and Spain is the fourth largest economy in the Eurozone.

For UK Home & Gift businesses looking at international growth, that makes Spain an interesting market to explore. But the session Unlocking the Spanish Market: Culture, Etiquette and Business Essentials highlighted something just as important as the numbers: the way you approach the market matters.

Doing business in Spain isn't just about having the right product. Relationships, trust, local knowledge and patience can be every bit as important.

The opportunity

Spain is a market worth paying attention to

With a population of around 49.7 million and a nominal GDP of €1.7 trillion, Spain represents a significant consumer and business market within the EU Single Market.

The commercial relationship with the UK is already well established too. Alongside £68.3 billion in UK and Spain trade during 2025, the presentation highlighted £87.8 billion of UK foreign direct investment in Spain and £35.6 billion of Spanish investment in the UK.

Spain at a glance

49.7 million inhabitants

€1.7 trillion nominal GDP

4th largest economy in the Eurozone

£68.3 billion in total UK and Spain trade during 2025

Takeaway 1

Don't treat Spain as one single market

One of the most useful points from the session was also one of the simplest: Spain isn't one homogeneous market.

Different regions have their own business ecosystems, economic strengths, identities and, in some cases, official regional languages. Madrid, Barcelona, Valencia, Bilbao and Seville shouldn't automatically be approached in exactly the same way.

For a Home & Gift brand, this means doing your homework before deciding where to focus. Think about where your ideal retailers and customers are based, which regions suit your product and price point and whether you need to adapt your approach locally.

Don't ask "How do we enter Spain?" Start by asking "Where in Spain is the best fit for us?"

Takeaway 2

Relationships come before transactions

This is probably one of the biggest cultural differences UK businesses need to understand.

Commercial factors still matter, of course, but confidence in the person and organisation behind the proposition can be just as important. An initial meeting might therefore be much more about getting to know each other and establishing trust than immediately talking prices, contracts and orders.

Warm introductions can be incredibly valuable too. Who introduces you and who already trusts you can help open doors that a cold email might struggle to.

For brands approaching Spanish buyers

Give relationships time to develop.

Don't make every conversation feel like a sales pitch.

Make use of trusted introductions where you can.

Show that you're interested in building something for the longer term.

Takeaway 3

Being British can work in your favour, but watch how you communicate

British companies already have some useful strengths in the Spanish market. They can be perceived as professional, reliable, innovative, internationally experienced and committed to quality.

But there is another side to that perception. British businesses can sometimes come across as formal, reserved or overly transactional, particularly if they move straight into commercial conversations before taking time to establish a relationship.

What works in your favour

Professionalism

Reliability

Quality

Innovation

Established brands and high standards

What to be aware of

Coming across as too formal

Being overly direct

Focusing on the transaction too soon

Relying entirely on English

Takeaway 4

A stalled email doesn't necessarily mean a stalled opportunity

Communication in Spain can be warm, expressive and animated. What might feel like interruption or overlapping speech to a British businessperson can simply be a sign that somebody is engaged in the conversation.

It's worth adapting your communication style too. Be clear, but avoid unnecessary bluntness, and handle disagreement diplomatically.

Perhaps most importantly, don't assume silence on email means the conversation is over. If an email chain stalls, picking up the phone or arranging a face to face conversation can often uncover what's actually holding things up.

Sometimes the best follow up email isn't another email. Pick up the phone.

Takeaway 5

A little localisation can go a long way

You don't necessarily need to be fluent in Spanish to explore the market, but making an effort matters.

Limited use of Spanish can create distance between British businesses and local partners, whereas using the language where possible can make conversations easier and demonstrate that you're genuinely committed to the market.

For Home & Gift brands, localisation should go beyond language too. Think about your sales materials, product information, pricing, retailer communications and the way your brand is presented. The aim shouldn't be to simply copy and paste your UK strategy into another country.

Takeaway 6

Don't rush the meeting

If you're used to tightly scheduled meetings that get straight down to business, you may need to adjust your expectations. Small talk is normal and is part of building the relationship rather than time being wasted before the "real" meeting begins.

Do

Identify the decision maker

Allow time for small talk

Follow their lead on formality

Follow up after the meeting

Avoid

Rushing the process

Pushing for an immediate decision

Showing frustration with delays

Spending too much time with someone who can't make the final decision

Takeaway 7

That long lunch might be doing more business than you think

Business lunches and dinners can play an important role in developing relationships. But don't go into them expecting to have dessert, sign a deal and head straight back to the hotel.

The meal itself may be about developing trust rather than closing the deal. And once the food is finished, there's sobremesa: the conversation that carries on around the table after eating.

Worth remembering

Don't rush away once the plates have been cleared. The conversation afterwards could be one of the most valuable parts of the meeting.

Takeaway 8

There isn't just one way into the Spanish market

Once you've decided Spain could be right for your business, the next question is how you actually sell there. The session outlined four main routes.

Direct sales

Sell directly to Spanish customers, including through ecommerce. This gives you greater commercial control.

Commercial agent

Someone develops sales locally on your behalf, bringing useful contacts and market knowledge while you retain the customer relationship.

Distributor

A distributor purchases and resells your products and may also manage stock and logistics, reducing the operational burden on your business.

Local partner

A franchise, cooperation or partnership arrangement can give you access to shared local knowledge, capabilities and resources.

There's no universally right answer. The best route will depend on your business, products, resources, appetite for risk and how much control you want to retain.

Takeaway 9

If you're establishing a presence, get advice early

Businesses looking to establish themselves more formally in Spain have several possible structures, including operating as an Autónomo, creating a Sociedad Limitada or establishing a branch of an existing UK company.

From there, you'll potentially need to think about identification numbers, company documents, capital, notary and Commercial Registry requirements, tax registrations and any specific foreign investment requirements.

There are also ongoing considerations around tax, VAT or IVA, employment contracts, social security, accounting, data protection and sector specific regulation.

This is definitely not the part to guess your way through. Get appropriate local professional advice before deciding which structure is right for your business.

For Home & Gift businesses

What does all of this mean for our industry?

For a UK Home & Gift brand, the temptation when looking overseas can be to start with the practical questions: Which retailers should we contact? Do we need an agent? Which trade shows should we attend?

Those things matter, but this session suggests the groundwork should start slightly earlier.

Think about which part of Spain genuinely suits your products. Understand how your price point and proposition fit the market. Decide whether direct selling, an agent, distributor or local partner makes most sense. Then invest time in the relationships that will help you build a sustainable presence.

Before approaching the Spanish market, ask yourself:

1. Which region is the strongest fit for our products?

2. Have we adapted our proposition for the local market?

3. Do we need an agent, distributor or other local partner?

4. Who are the people we actually need to build relationships with?

5. Are we prepared to give those relationships enough time?

The HGA Takeaway

Localise, build relationships and give it time

1. Spain is a significant market with an already strong trading relationship with the UK.

2. Don't treat Spain as one homogeneous market. Choose your region carefully.

3. Relationships and trust matter, so don't rush straight into the transaction.

4. Adapt how you communicate and make an effort to localise.

5. Choose the route to market that genuinely fits your business rather than assuming you need a particular model.

6. If you're establishing a formal presence, get local professional advice early.

Need support?

You don't have to work it all out alone

The Spanish Chamber of Commerce in the UK can support businesses exploring the market through company lists, commercial presentations, agendas and missions, market guides and its enquiry service.

For businesses establishing a presence, the Chamber can also provide introductions to trusted local partners who can assist with areas including company incorporation, Spanish bank accounts, legal and tax matters, accounting, immigration, employment and social security registrations.

UK businesses can also explore support through the Business Growth Service, Business Academy sessions and tailored export support.

Thinking about international growth?

For HGA members, international opportunities are one of the many ways we can help you explore new markets, make useful connections and find the right support for your next stage of growth.

Keywords: Doing Business in Spain, Spain Export, Spanish Market, International Trade, Exporting to Spain, Home and Gift Industry, UK Business, Spanish Business Etiquette, International Growth, Business Growth, HGA Takeaway, Home and Gift Association

Go back