Investment Policy Monitor
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UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the quarterly Investment Policy Monitor (since 2009) and the UNCTAD-OECD Reports on G20 Measures.
In 2011, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2000 accordingly.
The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.
Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for growth and development.
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Note: the policy measures are identified through a systematic review of government and business intelligence sources. Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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- Spain - Modifies its investment control regulation and expands reporting obligations for inward and outward FDI
Spain
Modifies its investment control regulation and expands reporting obligations for inward and outward FDI
01 Sep 2023On 4 July 2023, the Government of Spain approved Royal Decree 571/2023. The decree, which entered into effect on 1 September 2023, builds upon Law 19/2003 of July 4, 2003. It further aligns Spain's foreign investment framework with EU Regulation 2019/452 and outlines scenarios where the general liberalized system for foreign investments may be suspended, requiring prior administrative approval if the investment is deemed to have an impact on public order, public security, public health, or national security.
Key changes include refined definitions for strategic sectors and clarified definitions of critical and dual-use technologies. The exemption regime undergoes substantial revisions, exempting investments in strategic sectors if the acquired company's turnover is below €5 million, as well as short-term investments lacking substantial influence and low-risk operations in the energy sector. Notably, the blanket exemption for investments under €1 million has been removed. Furthermore, the decree mandates that all authorization applications, irrespective of their size, follow a standardized process with a maximum decision period of three months. It establishes a legal foundation for prior consultation, making it obligatory for consulted entities, and enforcing a deadline of 30 working days for resolutions.
In addition, the decree introduces significant changes related to the mandatory reporting of Foreign Direct Investment (FDI), both inbound and outbound, in the Investment Registry of the Ministry of Industry, Trade, and Tourism. It also extends reporting requirements to encompass new transactions not covered by previous regulations. These include intragroup financings, specific shareholder contributions to Spanish company equity without capital increases, and reinvestments of profits in companies. Furthermore, the obligation to declare is eliminated for investments in transferable securities that do not seek to influence control and fall under the category of portfolio investments.
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Type:
- Entry and establishment (Approval and admission)
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Industry:
- Not industry specific
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Sources:
- www.boe.es, Royal Decree 571/2023, of 4 July, on foreign investments, https://www.boe.es/diario_boe/txt.php?id=BOE-A-2023-15549, 05 Jul 2023
- Latham & Watkins Antitrust and Competition practice, Spain Approves New Royal Decree on Foreign Investments, https://www.jdsupra.com/legalnews/spain-approves-new-royal-decree-on-7835309/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link, 21 Jul 2023
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UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the quarterly Investment Policy Monitor (since 2009) and the UNCTAD-OECD Reports on G20 Measures.
In 2011, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2000 accordingly.
The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.
Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for growth and development.
-
Note: the policy measures are identified through a systematic review of government and business intelligence sources. Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.