Temporary screening regime for foreign investment prolonged
19 Nov 2020
On 19 November 2020, the Royal Decree-Law 34/2020 relating to urgent measures against the COVID-19 pandemic entered into force. Inter alia, it prolongs the regime of suspension of liberalization of certain foreign direct investments in Spain until 30 June 2021. Under that regime, all foreign direct investment in listed companies as well as unlisted companies requires prior clerance, if the investment value exceeds 500 million euros. This applies to an acquisition of 10% or more of stock.
Furthermore, the Royal Decree-Law specifies sectors, in which foreign investment is subject to advance screening. New additions include:
1) critical and dual-use technologies, key technologies for industrial leadership and training (telecommunications, artificial intelligence, robotics, semiconductors, cybersecurity, aerospace, defense, energy storage, quantum and nuclear technologies, nanotechnologies, biotechnologies, advanced materials and advanced manufacturing systems);
2) supply of fundamental inputs, in particular energy, or those related to strategic connectivity services or raw materials, as well as food security, and
3) media.
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Type:
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Entry and establishment (Approval and admission)
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Industry:
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Primary (Agriculture, forestry and fishing)
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Manufacturing (Manufacture of food products, beverages and tobacco products, Printing and reproduction of recorded media, Manufacture of basic metals, Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c.)
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Services (Electricity, gas, steam and air conditioning supply, Water supply, sewerage, waste management and remediation activities, Accommodation and food service activities, Publishing, audiovisual and broadcasting activities, Telecommunications, Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities, Arts, entertainment and recreation)
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