At travelchina.es, we know Hainan inside out. Our most recent visit to the island was during Easter 2026, an immersive trip to explore its tourism and investment potential on the ground. What we found exceeded all expectations: an island in full swing, where the ambitious Free Trade Port project is beginning to become a tangible reality. For Spanish companies, this is not a mere mirage, but a top-tier strategic opportunity, which already has an official bridge: the newly inaugurated Spanish-Hainan cooperation office. Following our trip and the subsequent exhaustive analysis, we offer this detailed guide to Hainan’s ecosystem.

1. Why Hainan? The “Chinese Singapore” becomes a reality

On December 18, 2025, the island-wide special customs operation was launched, making it the world’s largest free trade port by area (34,000 km²), surpassing Hong Kong by 31 times. Its strategic location, at the crossroads between the market of 1.4 billion Chinese consumers and Southeast Asia, makes it an unparalleled logistics and commercial hub.

Tourism is already a fundamental pillar. During the 14th Five-Year Plan (2021-2025), the tourism sector contributed 33.4% of the island’s GDP. In 2025, Hainan surpassed 100 million tourist arrivals for the first time, generating total spending of 225.4 billion yuan (approximately USD 32.4 billion).

2. Competitive Advantages: The Incentive Ecosystem

Hainan’s appeal lies in a policy ecosystem with unprecedented fiscal and operational advantages in China, which we were able to verify in situ.

2.1. The Tax System: “Zero tariffs, low taxes, and a simplified system”

• Two-Layer Customs Regime: Goods imported into Hainan from abroad enter with zero tariffs, zero VAT, and zero consumption tax for items outside the negative list. Tariffs are only activated when crossing into mainland China. Additionally, products processed on the island that add at least 30% local value-added can enter the mainland market tariff-free.

• 15% Corporate Income Tax (CIT): Foreign companies established in Hainan whose activities are included in the 2024 Catalogue of Encouraged Industries (tourism, modern services, high technology, etc.) are taxed at 15%, compared to the general 25% rate in China.

• 15% Personal Income Tax (PIT): High-level foreign talent and professionals in sectors with skills shortages are taxed at 15% on their income.

2.2. Ease of Doing Business

The provincial government has implemented radical reforms. The registration process for foreign companies has been reduced from five steps to one, with a reduction in documentation of over 77%.

3. Key Opportunities for Spanish Investment

The strengths of the Spanish business landscape align perfectly with the pillars of Hainan’s development plan. These are the sectors with the greatest potential that we identified during our visit:

4. Spain Takes the Lead: The Spain-Hainan Cooperation Office

A particularly significant milestone, which we witnessed first-hand, is the creation of the Spain-Hainan Cooperation Office. This step makes Spain the first European country to establish such a platform within the FTP.

• Who is driving it? Managed by the Spain-China Friendship Association (chaired by Antonio Miguel Carmona), it was formally established in December 2025 following meetings with the Governor of Hainan, Liu Xiaoming.

• Its mission: It will act as a bridge for Spanish and European companies, helping them navigate Hainan’s preferential policies and establish their presence in the Chinese market. Additionally, in March 2026, the Spanish Chamber of Commerce inaugurated its own office in Haikou, the first international chamber office in the FTP.

• First steps: Upon its creation, 10 Spanish companies from sectors such as food, consumer goods, tourism, and technology had already expressed their intention to use its services. During the 2026 Boao Forum, a memorandum of understanding was signed between Hainan and the Spanish region of Catalonia.

Antonio Miguel Carmona highlighted that “for Spanish companies, this represents not only a commercial opportunity, but also an opportunity to participate in one of the most ambitious economic initiatives in China.”

5. Conditions for Foreign Investors and Nationality

Hainan’s FTP offers China’s lowest threshold for foreign investment, with the shortest negative list in the country.

• Foreign Ownership: The most common option is the establishment of a Wholly Foreign-Owned Enterprise (WFOE), which allows 100% ownership without a local partner.

• Share Capital: There is no mandatory minimum share capital for a WFOE, although it must be declared and contributed within 5 years (under the new 2024 Company Law).

• Procedure: Registration can be completed in 5 to 7 weeks for a service company.

• Visas: A key advantage for tourism and business is visa-free entry for stays of up to 30 days for citizens of 59 countries, including Spain.

6. A Growing Ecosystem: Verified Data

The project’s success is reflected in the official data, much of which we were able to see first-hand during Easter 2026:

• Visas: Tourist arrivals under the visa waiver policy grew by 64% year-on-year in 2025.

• Trade: In the first month of FTP operations, offshore duty-free sales increased by 46.8%.

• 2026 Targets: The government expects to reach 115 million tourist arrivals and spending of 248 billion yuan. Hainan’s duty-free market share already exceeds 8% of the global market.

7. Conclusion: A Window of Opportunity for Spanish Investors

Hainan Island has consolidated itself as China’s largest economic opening laboratory. Our on-the-ground experience during Easter 2026 has confirmed that the time to act is now. The combination of unprecedented fiscal incentives, the creation of a Spanish liaison office, and the clear sectoral synergies create a scenario of unique opportunity.

At travelchina.es, we will continue to closely follow the evolution of this market and provide our readers with the tools and knowledge needed to make the leap to the new investment frontier in China.