the question arises in Lleida: which business is relocating its headquarters to neighboring Aragon or other regions? this concern prompted a parliamentary motion about moving companies out of Lleida counties. to explore this, the government commissioned a study led by the ministry of economy, with participation from the chamber, the diputació de lleida, the city university, and the barcelona school of management from upf. contrary to common belief, the issue is not driven by taxes or fiscal pressure.
between 2015 and 2020, a total of 428 companies, or 3.2 percent of the regional total, relocated their headquarters or facilities to other regions. by contrast, the same period saw a net loss of 87 firms in the area.
to barcelona, aragon and madrid
almost four in ten relocating firms left for barcelona, drawn by capital advantages like infrastructure and growth opportunities; about 18.9 percent moved to aragon seeking administrative agility and available land for sectors including agri-food and livestock; and roughly 14 percent redirected to madrid attracted by tax incentives and subsidies. data from pimec show that aragon experienced an 8 percent growth in company numbers over 15 years, while lleida grew only 2 percent.
the study warns that lleida faces the risk of stagnation amid two dominant logistics hubs: zaragoza and the central corridor on one side, barcelona and the mediterranean corridor on the other. this dynamic could worsen the relocation trend unless infrastructure improves, rail connections are enhanced, and the lleida-alguaire airport is repurposed with new uses. proposals include creating a single entrepreneurial window, building an investment-attraction hub with agri-food polygons, and fostering university–business collaboration. during a regional visit, james giro emphasized that constructing new industrial sites would help stem the outflow of companies.
examples of offshoring include a seed producer relocating a large crop operation and orchard management to a factory in torrente del cinca with a 10 million euro investment and 80 jobs created. aragon’s ease of administration and the availability of land were key factors. likewise, the lleida-based agricultural machinery company niubo chose fraga in 2017 as a growth site for similar reasons.
No subsidies, no taxes, no land
the study notes that the analysis found no strong association between relocation and three elements often cited in such discussions: subsidies, tax burdens, and land prices. catalonia ranks fifth in fiscal pressure relative to its gdp, despite a larger share of its own taxes and collections, with levels close to aragon. per capita comparisons indicate that catalonia also sits in fifth place in 2020, just above aragon. in short, the tax burden difference is not a decisive factor in relocation, because taxes in catalonia are relatively moderate, targeted at specific sectors, and not easily relocated.
moving-company surveys shed additional light. about 90 percent of relocators are micro or family-owned businesses citing reasons such as proximity to customers and rivals, operational synergies, and cost savings with nearby partners. the remaining 10 percent, comprising SMEs, highlighted bureaucracy, regulatory attitudes, and land connectivity as the main drivers for moving headquarters.