Navarre, Spain Investment Guide

Photo: San Fermines festival

Those who do not know the name Navarre surely have heard of its famous nine days of festivals, the San Fermines. The population of Pamplona swells every July with tourists who come to view the centuries-old tradition of the running of the bulls. There's always excitement, and sometimes tragedy, during the two-minutes each morning that man tries to outrun beast.

Navarre has maintained its self-governing status for centuries. Spain's constitution accepts the existence of the region's system of special rights, including civil law, taxation and finance, education below the university level, public health and civil works.

The institution most foreign investors will deal with is the development agency SODENA (Sociedad de Desarrollo de Navarre). A private company founded in 1984, SODENA is funded 80 percent by the government of Navarre and 20 percent by the most important financial institution in Navarre -- Caja de Ahorras de Navarra, a savings bank. The president of Navarre is automatically the president of the bank.

Photo: Royal Palace

Under Carlos III el Noble, a prosperous period was exemplified by the Gothic splendor of the Royal Palace at Olite.

SODENA's two main activities are assistance to foreign investors (consultancy, one-stop permitting, help with incentives) and financial assistance to encourage promising local companies.

SODENA holds a position in 22 such Navarre-based companies. It supplies venture capital, always holding a minority position of 45 percent or less. Typically, SODENA will be involved in the company for no more than 10 years, although in some cases, where the capital recovery time is longer (as in the case of a utility), it can retain its position longer. Some of the companies are strategically important to Navarre, such as the wind energy projects and the regional airline.

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