Following the announcement of its business results, Ferrovial announced that it would relocate its headquarters to the Netherlands and then go public in the United States. They argued from the infrastructure giant that this would allow them “better access to capital markets” in a country with a “stable” legal framework. In addition, most of the company’s sales and contracts, especially more than 85%, are located outside the borders of Spain.
This institutional move received a response from the Government through the Minister of Economy, Nadia Calviño. Calviño described Ferrovial’s move as a “wrong” decision, adding that it “is a company that owes everything to Spain” and that “it is unacceptable for a company that was born and grew here thanks to public investments by Spanish citizens to show this.” lack of commitment to your country”. Also, other portfolios such as Agriculture or Transport have expressed concern about this, wondering if this is reversible or if they will continue to invest in our country.
tax reasons
Only between 1% and 2%, although they indicate that the change of center from Ferrovial will have no effect on the payment of taxes in Spain; dutch tax regime tax-free dividends allow repatriation or collection of royalties or royalties. Spain had a similar situation until 2021, when the General Government Budget recorded 5% of repatriated dividends in corporate tax, which would mean savings of 40 million for the company, according to Banco Sabadell.
Corporation tax is similar in Spain and the Netherlands, but in this latter country the Government close bilateral agreements with large individual taxpayers to offer looser taxation. Taxpayers are also allowed to transfer their tax bases to the tax haven of the Netherlands Antilles by paying a symbolic toll of not even 1%, a mechanism similar to that available in Ireland.
bureaucratic reasons
Some experts agree that the main reason Ferrovial has taken the step of moving its headquarters to the Netherlands has to do with the company’s self-proclaimed goal of speeding up its steps to cease listing on Wall Street. In fact, the company claims that: almost 90% of its business comes from outside Spain and due to the volume of many of their projects (and they’re giving 8,000 million for the operation of JFK airport in New York, for example), listing on Wall Street and even in the Dutch market gives them access to greater financing opportunities. .
But does that mean the Netherlands is the shortest route for Ferrovial to be listed in New York? According to some financial media, yes. The Netherlands and the United States would have a trade agreement dating from 1959.It states that national treatment shall be accorded to nationals and companies of either party participating, directly or indirectly, in any commercial, industrial, financial and other for-profit activity (commercial activity) in the territory of the other party. through a representative or any legal entity”. However, other sources referenced, The European Union has the exclusive authority to negotiate free trade agreements. On behalf of the Member States.
According to these media, this text would show that it was easier for a company to make the leap to Wall Street via the Netherlands. In fact, such operations are very common, according to Wouter Vosse, a lawyer at Dutch law firm Hamelink & Van den Tooren: “It’s not an extraordinary operation. We advise several companies with this type of operation.. It is common for some companies to access the US market through Dutch legislation. Vosse emphasizes operational “no tax advantage”.
Financing cost ratios
This is one of the reasons considered to explain Ferrovial’s departure to the Netherlands. This statement reflects the company’s financing needs. It will be easier and less costly for them to have their headquarters in the Netherlands.. According to some experts, it is clearly better to have the headquarters in one country. evaluation AAA is the maximum and most guaranteed, “it’s like giving you a protective umbrella.” It is even claimed that the cost of obtaining financing is 1% cheaper than the rating of the Kingdom of Spain.
Other experts point out that Ferrovial’s presence in a AAA-rated country does not necessarily mean a discount or advantage in financing. In fact, they emphasize: the rating of the company itself is below the Kingdom of Spain. According to the latest data, Ferrovial’s consolidated net debt is 5,781 million euros, or 22% of its total assets.
Also, with the company’s planned listing in the United States, Opening up a new range of funding sources. The company will be able to initiate large bond issuances or a capital increase with new partners entering the company, which will attract more interest than in Spain. The company will need access to new funds, either capital or debt, to face the investments for years to come.