5 Common Mistakes in Market Entry Projects in Spain — and How to Avoid Them

Expanding into a new country is an exciting opportunity — but it also comes with hidden risks. Over the years helping international companies establish themselves successfully in Spain, I have noticed a few recurring mistakes. They seem small at first, but they can derail an otherwise promising market entry project.Let's take a closer look at these pitfalls — and more importantly, how you can avoid them to maximize your chances of success.

1. Believing that an AI tool replaces a real market study

In today’s world, it’s tempting to rely on ChatGPT, Claude, Perplexity, or other AI tools to “understand” a market quickly.But asking a chatbot for insights ≠ conducting a strategic market diagnosis.

A real market study is not just about gathering information; it’s about interpreting complex market dynamics, customer behavior, cultural nuances, regulatory hurdles, and competitive environments.Spain has its own business culture, rhythms, and regional differences — elements that a superficial analysis will never reveal.

What you need: a strategic, locally-grounded diagnosis that combines data analysis with real-world market understanding.The right insights will allow you to avoid costly missteps and design a market entry approach that resonates.

2. Copy-pasting your original business model

Just because your product or service works in Paris, Milan, Frankfurt, or Amsterdam doesn’t automatically mean it will work in Madrid, Barcelona, or Málaga.

Each market has its own codes, expectations, and momentum.In Spain, consumer behaviors, purchasing processes, negotiation styles, and even B2B dynamics can differ significantly from what you are used to.

Copy-pasting your business model without adaptation is risky.You need to understand not just the "what" but the "how" — how decisions are made, how trust is built, how loyalty is earned in this market.

What you need: adapt your value proposition, communication style, and go-to-market strategy to fit Spanish expectations without losing your brand's DNA.

3. Choosing a legal structure “on the fly”

Subsidiary? Branch? Joint venture? Working with a local distributor or setting up your own entity?

This decision should never be taken lightly.Each structure has deep tax, legal, HR, and operational implications in Spain.For instance:

• A branch may expose your mother company to liabilities.

• A subsidiary (S.L. or S.A.) gives more local autonomy but comes with corporate obligations.

• Working through a partner may seem flexible but may limit control over brand positioning.

What you need: choose your legal and operational structure based on your 3-year vision, not just immediate convenience.It’s about thinking long-term: scaling, protecting assets, optimizing taxation, and ensuring operational efficiency.

4. Thinking “Spanish is easy”

Because Spanish and French, Italian, or even English share some Latin roots, many entrepreneurs think, "Spain will be easier for me to understand than, say, Germany or China."

Unfortunately, similar language ≠ same culture.

The Spanish business environment has its own tempo, its own ways of building trust, negotiating deals, and managing projects.Without deep local insights, it's easy to misread signals or interpret behaviors incorrectly.

What you need: Cultural adaptation is not a nice-to-have — it’s a competitive advantage.Understanding how business is done in Spain (decision-making processes, hierarchy, relationship-building) is key to sustainable success.

5. Approaching market entry without local support

You may have excellent internal resources — a strong marketing team, a sharp legal department, a motivated sales force.But without local expertise, you risk going slower, making more mistakes, and missing opportunities.

Spain is a dynamic but sometimes complex market: administrative processes, labor law, regional differences (Catalonia, Andalusia, Basque Country...), cultural particularities.

What you need: A local partner who brings strategic insight, operational experience, and an external, critical perspective.The right local partner can accelerate your market entry by months — and save you from avoidable (and often costly) mistakes.

Conclusion: Build Your Success on Solid Ground

These challenges are common — but they can absolutely be anticipated and overcome.

With the right local insights and carefully thought-out strategic choices, your development in Spain can start on solid ground.A successful market entry is not about moving faster — it’s about moving smarter.

At NeoRetos, we specialize in helping international companies navigate the Spanish market with clarity, confidence, and cultural intelligence.

Let’s talk about how we can support your expansion — and turn every challenge into a growth opportunity.