Incentives*

The government negotiates incentives on an individual basis, customizing company-specific packages, within the limits set by Spain the European Commission.

Says Jésus Zabalo of SODENA: "It's not so much the level of incentives but rather the assurance that they will be provided on time and that they will be tailored to do the company the most financial good. We have found that in the final round of consideration for a new investment, our package of incentives can move the decision in our favor."

In addition to the Navarre government incentives described below, other incentives and economic assistance may be available from Spanish or EU institutions

Investment: Grants of up to 20 percent of the investment in fixed assets (land, buildings, machinery and other production investment).

Job Creation: A 500,000-peseta grant for the creation of each full-time, stable job.

R&D: Interest-free loans cover up to 50 percent of the cost of the project (or 80 percent if the project is carried out in collaboration with a Navarre-based research center). Interest-free loans cover up to 70 percent of the cost of equipment purchased by research centers and laboratories. The equipment loan can be converted into a grant covering 100 percent of the cost for research projects of special interest to Navarre There are also grants for scientific and technical training.

Industrial Land: Payment in eight years and an interest rate of five percent for tracts purchased in any of the industrial estates promoted by the government of Navarre.

Training: The majority of the costs of customized courses in Navarre's vocational training centers are paid by the government. There is also financial support for in-house training courses given by instructors from outside the company.

Sale of Technology: Subsidies cover up to 50 percent of the cost of using stands in trade fairs or technology exhibitions. Loans cover up to 50 percent of the cost of overseas patenting or certifying Navarrese technology and products. There are also loans of up to 50 percent of the costs of market research and advertising the technology.

Other Incentives: Grants for employing first-time, degree-holding job seekers (including university and vocational school graduates), for contracting with groups with special needs (such as the handicapped or long-term unemployed), and for training researchers.

Additional incentives favorably impacting a company's bottom line include the possibility of special leases on sites or buildings and free land.

*This summary of incentives available from the government of Navarre is intended as a general guide. Companies considering investments should consult their business and tax advisors to determine how conditions will apply in their situations.