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Location Costs
 The following lines detail the cost of the land per square metre and installation costs for some economic activities. These are average prices, which can vary depending on the town and on the land available . [move up]
Utility Costs
- Electricity: Utility companies offer a wide range of tariffs.
- Natural Gas: From practically no consumption in 1980, whether for industrial or domestic and commercial use, we have advanced to a share of 22 % in the final consumption of energy and 42% in the total energy demand. The Basque Country features a 3,700 km. basic gas transport and distribution network that covers the entire territory. This network receives its supplies from the south via the natural gas pipeline that comes from Libya and Algeria, which reaches Araba from Haro, and from the north via the Port of Bilbao from the re-gasification and combined cycle plants belonging to Bahia Bizkaia Gas, the import terminal for liquefied natural gas (LNG) which began operations in 2003 and that has a dock for LNG carriers of up to 40,000 m3, 2 150,000 m3 storage tanks and a re-gasification capacity of 800,000 Nm3/h. The connection with the French gas pipelines via Irun is currently under construction. The Basque Government, as part of its energy source diversification policy, intends to connect the Basque Country to the French gas infrastructure and, with this in mind, has entered into talks with all parties involved in the project (Gaz du Sud-Ouest and ELF). The "Gaviota" natural gas field, discovered towards the end of the 1970s off the coast of Bermeo (Bizkaia) is now a strategic reserve, with a total capacity of 2,480 million Nm3 and a useful volume of 780 million Nm3 of gas. It is the greatest strategic natural gas reserve system in the country.
- Water: Depending on the place, fares might vary. The tables below show price figures of the most significant areas in the Basque Country. [move up]
Labour Costs
- Social Security: The maximum Spanish company national insurance payment stands, approximately, at 32.10% over the total remuneration (see chart below). The payment for employees accounts for 6.35%, which companies deduce fro their monthly wages and pay into the National Social Security System.
- Deductions from workers: The company has to carry out a series of wage deductions based on the annual gross salary and on the number of children the workers have.
- Wages: Average earnings in 2006 stood at about 13.30 euros per hour and 1,863.31 euros a month. On the other hand, the minimum wage for all kinds of activities in farming, industry and services, with no sex and age distinctions, was established, for 2007 at 19.02 euros/day, 570.6 euros/month, not considering, under any circumstances an annual amount below 7,988.4 euros. The minimum wage for 2008 has already been announced at 600 euros. About 30% of gross wages go on contributions to the social security. The minimum salary includes both salary paid in money and in kind. [move up]
Transport Costs
- Maritime fares: Prices for the Port of Bilbao for 2007 have been indicated. Other tariffs (supply, storage, buildings...) are available on the web page of the Port of Bilbao (www.bilbaoport.es). The Port of Pasajes offers many of these services as well, and the rates do not differ much from those of the Port of Bilbao.
- Air fares: The fares corresponding to the airport of Foronda (Vitoria), which belongs to AENA, the Spanish airports network, have been indicated. Those for other airports may vary, but they generally have a similar price structure.
- Land Transport Fares: It is difficult to assess transport costs since they may fluctuate depending on destination (they are different if the destination is inside or outside the Basque Country), fuel prices and types of road - motorway, dual-carriageway, main road, local road.
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Tax and Finance System
Main Features
The tax and financing system in the Basque Country, which is based on the historical rights of the Provincial Territories (Territorios Forales), presents a number of unique features.
This uniqueness, recognised in the First Additional Stipulation of the Constitution, has been included in the Statute of Autonomy which establishes that tax and financial relationships between the State and the Basque Country will be regulated by means of the traditional provincial Economic Agreements.
The present Economic Agreement (Law 12/2002, of 23 May, BOE 24/05/02), includes, in Chapter I, the aspects governing tax relations, while Chapter II is dedicated to financial relationships. [move up]
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The Basque Tax System:
The Economic Agreement system ensures that the Basque Country has its own tax system with the regulatory and management capacities usually reserved for State Administrations. This does not prevent the Agreement from including relevant tax harmonisation rules to guarantee the controlled development of the different tax systems: those of the Basque Country and those from the rest of the Spanish State.
In the Basque Country, tax issues are linked to the Institutions of its three Historical Territories, Araba, Bizkaia and Gipuzkoa. However, it is the Basque Government which approves regulations governing tax co-ordination, harmonisation and co-operation. In use of these powers, the Basque Government approved Law 3/1989, that developed these principles and that created the Basque Tax Co-ordination Body which includes representatives from the Provincial Governments and the Basque Government, and which promotes the above-mentioned principles of tax co-ordination, co-operation and harmonisation in the Historical Territories in the Basque Country.
All taxes that form part of the tax system are managed and collected by the Provincial Treasuries based on the distribution included in the Tax Agreement.
From the point of view of regulations, and concerning indirect taxes, the Basque Country has its own Income Taxes, its own Corporate Tax and its own Property Tax and Inheritance Tax.
Furthermore, the Economic Agreement provides the Provincial Treasury Department with the power to collect Income Tax from Non-Residents, applying the same rule as in the rest of the State, except in the case of non-residents permanently established in the Basque Country, in which case they have the same powers and apply the same rules as in the case of Corporate Tax.
Concerning indirect taxes, the level of harmonisation concerning the two major taxes, Value Added Tax and Special Taxes, is practically total, based on the nature of these taxes, which have been harmonised throughout the European Union. Hence, the powers of the Provincial Treasure Departments are limited to specific aspects governing the management of the tax. On the other hand, the third indirect tax system, based on potential collection, the Inheritance and Legal Document Tax, can be regulated autonomously by Basque institutions.
The relevance that the so-called Agreed Taxes have on the tax policy can be seen in the amount collected.
The Financing System in the Basque Country:
The main feature of the Basque financing system is its capacity to collect almost all the taxes that form part of its own tax system, contributing to finance the expenses of the State in connection with services that have not been transferred to Basque Country institutions. This contribution that the Basque Country makes to the State is known as the "Quota".
Chapter II of the Economic Agreement regulates Financial Relationships with State Administrations, which are based on the following main principles:
1.-Tax and financial autonomy for Basque Country institutions.
2.-Solidarity.
3.-Co-ordination and co-operation with the State concerning budgetary stability.
4.-Contribution by the Basque Country to State expenses not assumed by the Autonomous Region.
5.-Financial tutelage of Local Entities. Corresponds to Basque Country institutions.
Concerning how the Quota is calculated, the Economic Agreement states that the method of calculation will be established every five years, by means of a law.
Consequently, Law 13/2002, of 23rd May, approved the method of the Quota for the 2002-2006 period. [move up]
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