Foreign Investment Regulations

Spain has deregulated practically all transactions in this area, being the most noteworthy aspects the following:

• Foreign investments do not require government prior approval and, as a general rule, are registered after the transaction has been done, with the next exceptions:
  • Investments from tax havens
  • Foreign investments in activities directly related to national security.
  • Real estate investments for diplomatic missions by States that are not members of European Union and require “prior verification” from the Spanish Council of Ministers.
• Unless expressly provided, there is no obligation for foreign investments to be notarized in the presence of a Spanish public authenticating official.
• There is no need to report certain foreign investments after the event if they are below €3,005,060.52 (unless the investment is from a tax haven).
• Investments in industries relating to air transportation, radio, television, telecommunications, gambling, raw materials, minerals of strategic interest and mining rights, private security, the manufacturing, marketing or distribution of arms and explosives, and in activities related to national security, are all subject to additional industry-specific legislation.

Exchange Controls

• As a general rule, all acts, businesses, transactions and operations between residents and non-residents which involve or may involve payments abroad or receipts from abroad are completely deregulated. This deregulation includes payments or receipts made either directly or by offset of the underlying transactions, as well as transfers to or from abroad and variations in accounts or financial debtor or creditor positions abroad. It also covers the import or export of means of payment.

In certain cases, in order to calculate the Spanish balance of payments and to maintain statistical control of monetary flows there are certain formalisms and registry obligations, which includes prior registration of the origin, destination and holding of funds when some means of payment are made.

• Nevertheless, in certain cases some formalisms are required, it stands out the notification of foreign loans and credits provided by nonresidents to residents requires (prior to the first draw-down of funds of the loan or credit provided) the resident borrower concerned to obtain a financial transaction number (“NOF”) when the amount thereof is equal to or higher than €3,000,000 (it is not necessary to file any returns for lower amounts).

For further information, visit the extended version of our online Guide to Business:

Spain profile

Prepared by Garrigues

Last updated: 28|06|2011