Logotipo Gentile Law

Updates in the Spanish Foreign Investment Regime

Updates in the Spanish Foreign Investment Regime Publicado: 11-01-2024

The new regime for foreign investments in Spain establishes the obligation to seek authorization before the execution of an investment. 

Key considerations of the new Royal Decree (Real Decreto) amending the foreign investment regime

The essential points to be taken into account regarding the new regulations are: 

  • The subjects of the regime are investors with the status of non-tax residents in Spain. 
  • When planning a foreign investment in Spain, it must be determined whtether prior authorization is required. The general foreign investment regime in Spain states that such authorization must be sought; however, there are various exceptions where this procedure is not necessary.
  • Authorization requests have a resolution period of 3 months. 
  • Not only must foreign investments made in Spain be declared, but also their cessation or withdrawal.

Which are the most important points of prior authorization for foreign investment? 

  • Non-submission of the request for authorization when required will result in fines up to the value of the investment itself.
  • Authorization may be approved or denied by the adminsitration, primarily considering whether the foreign investment may compromise security , health, or public order. 

There are certain exceptions to the obligation of requesting authorization for foreign investment. The main cases are:

  • Acquiring companies which turnover does not exceed five million euros in the last fiscal year.
  • Acquiring real estate that is not of public interest or related critical infrastructure. 

Send Comment