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ICT SECTOR November 2013

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ÍNDEX

1. Catalonia

2. Sector figures

3. Competitiveness Drivers

4. Success stories

5. Invest Services

6. Incentives

www.investincatalonia.com

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1. Catalonia

www.investincatalonia.com

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Facts and FiguresCatalonia’s population is similar to those of countries like Bulgaria and Austria. Its GDP is greater than Denmark’s and Finland’s and similar to that of Austria.

It exports more than Portugal and the Slovak Republic and about as much as Finland and Hungary.

At €27,053 / year, Catalan GDP per capita is 14% above the European average (EU-27) and above those of United Kingdom and Italy.

Source: IDESCAT, INE and the Ministry of the Economy.

Area 32,106 km2

Population 7.5 million

Average temperature 16.17ºC

Average hours of daylight 12 h 57 min

GDP mp 2010 € 209.7 billion

Agriculture (GAV 2010) 1.11%

Industry (GAV 2010) 18.55%

Construction (GAV 2010) 9.09%

Services (GAV 2010) 71.24%

Tourism (visitors a year) 25 million

GDP per capita 2010 € 27,053 / year

Exports 2010 € 48.59 billion

Imports 2010 € 66.92 billion

R&D spending 2009 1.68% of GDP

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Strategic Location

Barcelona’s airport connects the city to 150 international destinations and was named best European cargo airport in 2009 and Best European airport in 2010 by the Airport Council International. Three more international airports operate in Catalonia.

Catalonia is well connected to the European motorway and High-speed train network.

INTERNATIONAL FLIGHT DESTINATIONS

America North America: Mexico, United States, Canada; Central America: Costa Rica, Panama, Puerto Rico, Cuba, Jamaica, Dominicana, El Salvador, Guatemala; South America: Argentina, Brazil, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela

Europe Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Russia, Slovak Republic, Slovenia, Sweden, Switzerland, Turkey, United Kingdom, Romania, Malta, Moldàvia, Croàcia and Ukraine

Asia China, Israel, Jordan, Azerbatjan, Korea, Singapore, Indonèsia, Tahilandia, Qatar, Kuwait, Arabia Saudí and Syria

Africa Algeria, Egypt, Morocco, South Africa, Cabo Verde, Mauritània, Senegal, Nigèria, Guinea, Angola and Tunisia

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Source: European Cities Monitor 2010

Best city in terms of workers' quality of life 1st place

Best city improving themselves 2nd place

Best city for locating business projects 5th place

Best city ease for ease of travelling 6th place

Best city in terms of availability of office space 6th place

Best city in terms of business climate 10th place

Barcelona in Rankings

Barcelona has consolidated its position as the best city

in Europe in terms of the quality of life of its

workers*.According to the study conducted annually by Cushman & Wakefield

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Year

Foreign Direct Investment received

(billions of euros)

2000 4.89

2001 5.43

2002 3.00

2003 2.68

2004 4.07

2005 3.12

2006 3.04

2007 2.75

2008 3.36

2009 1.76

2010 4.52

Foreign Direct Investment received

Source: DataInvex. Investment Statistics. Ministry for Industry, Tourism and Commerce.

34% of all Spanish exporting businesses are located in Catalonia (36.841 in 2009, 7% growth rate)

75% of exports go to EU markets. 60% of imports come from EU countries. 10% of total Spanish FDI inflows come to Catalonia. 51% of Catalan FDI inflows are industrial.

Source: Invest in Catalonia based on data provided by ICEX-ESTACOM.

Catalan exports (millions of euros)

International and Globalized

48,595

41,461

50,514

49,678

46,776

42,361

39,121

37,277

36,872

36,397

33,538

27,6771999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

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2. Sector figures

www.investincatalonia.com

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www.investincatalonia.com

Most of catalan ICT companies are

SME’s (94,3%)

Revenue 14.176M€ for 2010

24,1% of spanish market and 2,1% of european

70.632 direct employment

10.000 more than last year

9,7% annual employment growth for 2009-2010

ICT Cluster in Catalonia

3479 companies

55,9% services

29,1% software

8,8% Telecomunications

6,1% Hardware

3,2% annual growth for 2011

Interannual growth of 8,2%for

2008-2010

ICT in Catalonia

SECTOR

EMPLOYMENT

CLUSTERSTRUCTURE & DATA

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Market distribution

Source: Invest in Spain, Aetic.2005-2010

The Information and Communication Technologies (ICT) play an increasing role in Spanish economy, since they have a direct impact in the improvement of the productivity and competitiveness of the country.In the period 2005-2010, ICT industry has grown considerably.

• Fifth largest ICT market in Europe.

• Worth over €92 billion in 2009 (6% of

the national GDP)

• More than 418,600 direct jobs in

Spain and out of the 41.721 ICT

companies

• More than 1.5 million indirect jobs

(7.5% of the total employment)

• Dominated by SMEs

• Catalonia, Madrid, Andalusia and

Valencia are home to 70% of the ICT

companies

• More than 40% of the private

investment in R&D comes from ICT

companies

ICT in Spain

Basic data

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Computer 73,1 %

Internet 68,3 %

Broadband 67,2 %

Land line 87,7 %

Mobile line 95,1 %

Main ICT indicators in Catalonia’s households, 2010

Source: Idescat and FOBSIC on data provided by INE.

The ICT sector in Catalonia is dominated by telecommunications services companies, software development, manufacturing of consumer electronics goods and telecommunications devices.

Catalonia’s turnover for telecommunications is 1/5 of Spain’s total productivity in this sector

The Telecomunication shares in Spain 58% of total ICT market more than the average of EU that shares 49%.

Critical Mass of companies in Catalonia

ICT data

Concerning ICT penetration,

Catalonia is one of the leaders

in Southern Europe, with 96.3%

of companies with internet

access and 30% involved in e-

commerce.

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Trends of the sector according with HP, IBM,Indra, Fujitsu, Microsoft, SAP Directors

Public and Private Cloud computing.

Managing and Consolidation of data center

Virtualization, big data structure and not structure analysis.

Automation and digitalization of information in order to reduce costs.

Smart computing, Business Analytics. Smart eye where.

E-commerce o self-care

Intelligent infrastructures. Sensor infrastructures.

Mobile devices and software to help integrate professional and personal life.

Source: Computerworld

Trends

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3. Competitiveness drivers

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MOBILE VENTURE CAPITAL37 Investment ICT Funds operating in Catalonia

1. Axon Capital

2. Bcn Empren

3. CDTI- Neotec I

4. Compas P.E

5. Enisa

6. Eurecan

7. Icaria

www.nvestincatalonia.com

1. Active Venture

2. Adara

3. Axon Capital

4. Highgrowth

5. CDTI- Neotec II

6. Debaeque

7. Enisa

8. Eurecan

9. La Caixa CR

10. Nauta Capital

11. Programa XIP

12. Uninvest

1. Active Venture

2. Adara

3. Axon Capital

4. Highgrowth

5. Bullnet

6. Corsabe

7. Debaeque

8. La Caixa CR

9. Nauta Capital

10. Spinnaker

11. Kreos Capital

Up to 500.000 €

8. Innova31

9. Inveready

10. La Caixa CR

11. Programa XIP

12. Reus CN

13. Uninvest

14. Founders Institute

Up to 4MM €

Up to 1MM €

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Business Opportunities

Auxiliary services to mobile phones Services for electronic ID e-Government Open source software Nearshore centres e-Health

E-Security Digital content and videogames Intelligent Transport Systems M2M Communications and Traceability Technologies E-Commerce

ICT in Catalonia

Mare nostrum supercomputer

Mare nostrum supercomputer

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Labour costsHuman resources availability

Spanish labour costs are below average of the European, and are competitive

compared with the cost of emerging countries, mostly in management and direction

positions.ICT Salary comparison (euros)

Senior 5-9 years of experience Junior 1-4 years experience

Den

mark

Su

ed

en

Germ

an

y

Norw

ay

Hollan

d

Fin

lan

d

Fra

nce

Belg

ium

Un

ited

K

ing

dom

Icela

nd

Italy

Au

str

ia

Sp

ain

Gre

ece

Cze

ch

R

ep

ub

lic

Hu

ng

ary

Ru

man

ia

Pola

nd

Source: Invest in spain based on OECD, INES LSO Network Group special data collection

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Synchrotron light source: ALBA is a third generation Synchrotron Light Facility. Located in Cerdanyola del Vallès near Barcelona, Spain..

Innovative environmentBarcelona Super Computing Centre: one of the most powerful supercomputers in Europe.  For investigate, develop and manage information technology. With special dedication taken to areas such as Computer Sciences, Life Sciences, Earth Sciences and Computational Applications in Science and Engineering. 

Barcelona Digital: Is a Tecnological Center (BDigital) is specialized in aplication of ICT in medical devices, security, mobility, energy and environment. y el Medio Ambiente.

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Extensive network of

Technological Centers:

TECNIO has more than 100 specialized

agents in the system of technology

transfer in Catalonia. Currently

integrates technology centers,

technology dissemination centers and

university groups, and plans to

incorporate new agents, such as

research foundations hospitals and

research centers.

Supported by an extensive net of Tecnological centers

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New Business Areas 22@ District Tenants

LlacunaBuilding

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Technological centers

22@Barcelona: Clusters & activities

ICT District

Companies

Institutions

Universities

IncubatorsResidences

Other services

Specific spaces

Dissemination spaces

Entrepreneurs

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Source: Map from Savills, prices from Jones Lang LaSalle 3Q 2010

€/m²/month

7.00 – 10.25

9.50 – 16.50

10.00 – 16.25

14.75 – 18.75

Prime zone

City Center

New Business Areas

Periphery

Office Space according to Geographical Location

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ICT SECTOR

Software

Telecomunicacions

Hardware

ICT Segmentation

e-commerce

Consultants and programmers

R+D centers

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ICT Segmentation

Hardware

SoftwareProgramació, Consultoria i

altres

e-commerce

Telecomunicacions

R+D Centers

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World Mobile Congress & Mobile World Capital

Mobile World Capital until 2018, expected increase business revenue in 6.000 millions euros in Catalonia.

Catalonia is the right place to develop the core of mobile technologies and telecomunications and to expand existing activities.

www.investincatalonia.com

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Mobile World Capital

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Productivity and competitiveness

improvement

Global talent recruitment /

detaining

Qualified job generation

Raising of foreign private

investment

Barcelona as the reference platform

where the World learns

Barcelona as the reference platform

where the World learns

Quality of live improvement for individuals and citizens

Mobile World Capital is the opportunity for Companies to become a world

reference in an emerging market with one of the highest growth potentials

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GSMA Agenda

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GSMA Legacy

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Smart city strategy

Smart city strategy is a chance for public and private partners in order to design cleaner, smarter, and better cities to live in.

Barcelona is involved in a project to

develop the city of the future and

companies are welcome to

participate.www.investincatalonia.com

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Universities and International

Business Schools

International Business Schools & Telecomunication schools

33 university research institutes

Network of Technological Centres

R&D Activities:

12 public and private universities

More than 227,000 students More than 400 different

degrees

Quality Education

Universitat de les Nacions Unides UNU

Qualified Workforce

5,725 students finished engineering studies in 2010

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4. Success stories

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Wuaki.tv

Founded three years ago by two Catalan entrepreneurs. They rent online films and videos, integrating a device in TVs, by agreement with the manufacturer. Access to finance through ESADE Business Angels, with venture capital rounds in 2010 & 2011.

Rakuten

The Japanese group Rakuten, dedicated to e-commerce, is the third companyworldwide in the field of e-commerce and competes globally with Amazon. They sought a partner to compete in the area of digital content versus Amazon. They have purchased the Videoclub Wuaki.tv catalan online. The purchase does not mean it give up to operate in Spain with its brand, but will continue increasing catalog of films. They will shortly announce a flat rate for life of 4.99 €

Message

New investments Partnership Japan – Catalonia. Reasons to invest. TALENT globally competitive. POTENTIAL. START-UP CATALAN. COSMOPOLITAN.

WUAKI.TVThe japanese group Rakuten buys wuaki.tv

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NXP SEMICONDUCTORS New innovation center

Relation with MWC

NXP is a US based company with 95% share of the mobile chips market. Its objective is to grow by generating new uses for mobiles. The company already has two innovation centers and wants now to create another one. Signed a Letter of Intent with MWC mentioned on this center.

What Invest did?

We have provided information regarding available spaces (technology parks, offices), incentives and opportunities as well as recruitment channels (engineers)

Data of the project

1 MEURO & 20 new jobs

Message

Come to Catalonia to take advantage of the CAPITAL of MOBILE AND LOW COSTS.

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LIVING SOCIAL – LET’S BONUS Adquisition of Let’s Bonus by Living Social

Living Social

Founded in 1993 in San Francisco, Nasdaq trading, with offices in Canada, Singapore, France, Germany, Switzerland, the UK, Japan, China and India. Turnover 2011: 134.9 M $. With more than 5,000 customers worldwide, including the financial sector, technology and public sector. They also founded the project Birt of opened code. There are more than one and half million developers.

Lets Bonus

LetsBonus was founded in 2009 in Barcelona with a small investmentinitial 100,000 euros and currently have 600 people in its offices inBarcelona, Madrid, Valencia, Rome, Milan, Lisbon, Buenos Aires, Mexico City, Santiago de Chile, Bogota and Montevideo and has 4.5 million customers. Provides servicesgroup purchasing discounts of up to 70% and now represent travel 30% of theirrevenues.

Message

The Catalan entrepreneurs are very powerful. Partnership with Catalan companies. Gateway to European and Latin American market. ENTREPRENEURS OF REFERENCE. ALLIANCES TO ENTER IN EUROPE AND LATIN AMERICA

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TORONew office of product development in Catalonia

Relation with Mobile

Toro is a Taiwanese company. Wanted to open development office in Europe to search new customers and provide service to T-Mobile in Poland, which uses the platform of Toro. In Paris Toro didn’t find the developers needed at the price they wanted.

What Invest did?

We have provided complete information on Toro Catalonia (taxes, labor regulations, incentives, venture capital, creating a society, etc), contacts with lawyers and successful contact with the University to hire people. We operated his visit with Catalan Industry Ministry.

Data of the project

0,1 MEURO & 20 workers (2012-2013)

Message

REASONS TO INVEST IN CATALONIA:

MWCAPITAL PROPOSAL: INDUSTRIAL PROGRAMME M-WALLET

BE IN CONTACT WITH OTHER LEADING COMPANIES OF THE SECTOR

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LARGE DEALSBain Capital acquires AtentoAtento

Subsidiary of customer care and service outsourcing Telefonica. Ranks nº2 worldwide in the segment of business processes outsourcing (BPO) and its strong presence in America and organic growth recorded in 2011. With presence in over 12 countries worldwide which employ more than 152,000 people. Revenue 2011 € 1.802M and OIBDA (Operating Income Before Depreciation and Amortization) of € 161M.

Bain Capital

Venture capital fund, with strong presence in Europe with offices in London and Munich.

Manages 3.500 M € Europe Fund III and has access others $ 10.700 M international

funds.

Message

New U.S. investments in Barcelona, the main reasons to invest: among the top BPO companies in the world and their high degree of internationalization. LARGE OPERATIONS WITH THE BEST COMPANIES OF THE WORLD AS SECTOR OR SEGMENT.

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5. Invest services

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How we can help you set up your business in catalonia

BUSINESS

HELP

FIND THE

RIGHT PARTNER

FIND THE

PROPERTY &

LOCATION

EXPAND YOUR

NETWORK

Business Intelligence

Sector IntelligenceLegal RequirementsTax StructureVisas & work permits

Business Match-making

Companies poolJV &M&A deskLabour poolProfessional Service

Real Estate Support

Offices availableReal Estate marketInfrastructures Personalized advice

Business Environment

Government ContactsPolicy-makersCulture & Social Life

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Our services

Is your company thinking about the possibility of investing in Catalonia?Do you have a investment project to do business in Catalonia?

Are you looking for a location for your business project?

Do you need information on available incentive programmes?

Do you regularly work with foreign companies as clients?

Informationfor foreign companies

One-stop shop for investment projects

Finding a business location service

Incentive advice service

Public-Private Partnership

Is your company already set up in Catalonia?

Aftercare for companies with activity in

Catalonia

Services

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6. Incentives

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Incentives for

ICT companies

R&D incentives

Investment Incentives

Hiring incentives

Training incentives

Energy and environmental releated incentives

Financing

The Incentives Advisory Unit offers information on incentives and financing available in Catalonia, at all administrative levels, from European to National, regional and local funds.

The assessment provided on the applicable incentives is prepared according to the characteristics of the investment project and the company.

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Invest in Catalonia Incentives

Programs and objectives

Entity Beneficiaries and type of incentive Intensity and maximum aid amount

Incentives program to promote high impact business

investments

Invest in Catalonia –Ministry of Enterprise

and Labor of the Government of

Catalonia.

Companies with high impact investment projects creating new jobs. The minimum number of jobs created will be set

depending on the type of project (Services related activities, R&D&i centres, Industrial activities and Logistic centres). Companies must hire disadvantaged people.*

Eligible expenses are the annual company cost (annual

gross wage + company’s contribution to the Social Security) of the newly created jobs (period to create the new jobs: from 1st January 2013 to the conclusion of the

project (the period shall not be higher than 12 months from the submission of the application form).

Up to 10% of the eligible expenses, depending on the main characteristics of the

project.

Call expected to be published in March 2013

INVEST IN CATALONIA INCENTIVES

*A disadvantaged worker refers to the individual who meets any of the following criteria:

(a) A person who has not been in regular paid employment for the previous 6 months (employment under temporary labor contracts),

(b) A person who has not obtained a high school education or vocational qualification,

(c) A person who is over the age of 50,

(d) A person who lives as a single adult with one or more dependents.

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INVESTMENT INCENTIVES

Fixed Assets Investment Incentives

Programs and objectives Entity Beneficiaries and type of incentive Intensity and maximum aid amount

Incentives to promote competitiveness plans in

industrial sectors

Ministry of Industry Energy and Tourism

Companies of the following sectors: automotive, aerospace, capital goods, chemical & pharmaceutical,

metallurgical, manufacture of metal products and manufacture of other non-metallic mineral products,

railway.

Investment projects shall include some of the following actions: development of new products, process

reengineering, investments implying energy savings and environmental improvements, environmental studies,

training actions, etc.

Loans at 3,95% interest rate, with a payment period of 10 years

maximum with a grace period of 3 years. It is not necessary to

present guarantees to endorse the loan.

Incentives for investments in reindustrialization

actions

Ministry of Industry Energy and Tourism

Companies with industrial production activities, to be carried out in certain zones (see map on following pages)

Reimbursable loans up to 50% of eligible expenses, at 3,95% interest rate, payable in 10 years maximum

(including a grace period of 3 years).

Reimbursable loans up to 50% of eligible expenses.

Up to 15% (grant equivalent).

Incentives for investments in mining areas

Ministry of Industry Energy and Tourism

Companies with industrial investment projects in mining areas (RECHAR, see annex below).

From up to 3.75% to 15% depending on the municipality

(according to the EU map of State aid below).

Incentives for high impact strategic change

ACCIÓ – Catalan Ministry of Enterprise and Labor

Companies with industrial activities or those providing services to the industrial sector with investment projects

to develop new business opportunities that allow strategic change of its business core.

Eligible expenses: equipment (only SMEs); outsourcing cost of strategic consultancy, prototyping and testing,

and certification and homologation; benchmarking analysis of Technology Centres, Universities and

companies; training related to the new activity. For R&D projects: up to 50%, including personnel among others.

Up to EUR 90,000

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Beneficiaries: Companies and entrepreneurs dealing with mobile technology investment projects. These new projects must set up in a special zone in 22@ district in Barcelona (still to be defined).

Type of incentive: Companies may benefit from (yet to be specified):

•Tax incentives in Corporate Tax

•Reductions in Employer’s Social Security Tax

•Reductions in local taxes

•Special location conditions: very competitive price of office rental

Other benefits:

•Innovative environment, with access to Research and Technology centers

•Synergies with other companies dealing with mobile technologies.

The Barcelona City Council is leading the project, in collaboration with the Spanish Ministry of Treasury.

INCENTIVES TO PROMOTE THE ESTABLISHMENT OF MOBILE TECHNOLOGY COMPANIES IN BARCELONA

Incentives are being defined at present. Therefore, main characteristics and conditions are still to be announced.

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You can contact Invest in Catalonia at our

headquarters:

BARCELONA

Passeig de Gràcia 129

08008 Barcelona

Tel. 93 476 72 87

At any of ACCIÓ’s international offices:

Or at www.investincatalonia.com