Spain FDI control
Produced in partnership with Hogan Lovells

The following Competition practice note produced in partnership with Hogan Lovells provides comprehensive and up to date legal information covering:

  • Spain FDI control
  • 1. What is the applicable legislation?
  • 2. Which government or other body (or bodies) reviews foreign investments?
  • 3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (eg foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (eg state-owned enterprises)?
  • 3A. The General Screening Mechanism
  • B. The Defence Screening Mechanism
  • 4. What are the triggers or thresholds for the regime to apply? What types of transactions are caught? Is there a minimum level of shareholding or a control test that applies? Are there any other thresholds that need to be met (e.g. based on turnover or market shares)?
  • 4A. General Screening Mechanism
  • 4B. Defence Screening Mechanism
  • 5. Are there any exceptions that may apply?
  • More...

Spain FDI control

A conversation with Lourdes Catrain, Casto González-Páramo, Alfredo Gómez Álvarez and Raquel Fernández Menéndez from the Brussels and Madrid offices of global law firm Hogan Lovells on key issues of foreign direct investment (FDI) control in Spain.

1. What is the applicable legislation?

Foreign direct investment (FDI) control in Spain is mainly governed by:

  1. Spanish Act on the legal regime of capital movements and economic transactions abroad (the Act 19/2003) (Ley 19/2003, de 4 de julio, sobre régimen jurídico de los movimientos de capitales y de las transacciones económicas con el exterior y sobre determinadas medidas de prevención del blanqueo de capitales)

  2. Royal Decree 664/1999, of 23 April 1999, on foreign investments (the RD 664/1999) (Real Decreto 664/1999, de 23 de abril, sobre inversiones exteriores).

Specifically, the consolidated version of the Article 7 bis of Act 19/2003 lays out the new FDI screening mechanism in Spain (the General Screening Mechanism) (as amended by the Royal Decree-Law 8/2020, of 17 March 2020, on extraordinary urgent measures to deal with the economic and social impact of COVID-19). Subsequently, the General Screening Mechanism has been amended and supplemented by the Royal Decree-Law 11/2020, of 31 March 2020, on additional urgent measures in the social and economic field to deal with COVID-19 , the Royal Decree-Law 34/2020, of 17 November 2020, on urgent measures to support business solvency and

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