India is known as the 'pharmacy of the world', a leading supplier of generic medicines and active pharmaceutical ingredients (APIs).
Spain has a large, publicly funded medicines market with a strong push towards generics. That creates openings for EU-compliant Indian manufacturers, APIs and generic product dossiers.
Spain's pharmaceutical industry generates more than €27 billion in value added, close to 2% of GDP. Generics account for over 40% of units dispensed but only about a fifth of spending, and the government is working to increase their use.
Indicative estimates by Think Euro International. Actual results depend on capital invested, pricing, buyers and execution.
| EU import duty | 0% on most finished medicines and many APIs (WTO Pharmaceutical Tariff Elimination Agreement). |
|---|---|
| Spanish VAT (IVA) | Medicines for human use 4%; APIs and substances used to make medicines 10% |
| Spanish corporate tax | Spanish SL: 25% standard rate. Reduced 2026 rates: 19% on the first €50,000 of profit and 21% on the rest for companies with turnover under €1M; 23% for turnover under €10M; 15% for the first two profitable years of a newly created company. |
India–EU FTA: negotiations concluded on 27 January 2026. It is not yet in force (expected no earlier than 2027); once in force it removes or cuts EU duties on most Indian goods.
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Figures and rates are for general information (updated September 2026) and can change. Duty rates depend on the exact customs (TARIC) code, and tax depends on your specific situation. Please confirm with us before making investment decisions. This page is not legal or tax advice.
