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BIPPAs

Acronym for Bilateral Investment Promotion and Protection Agreements (BIPPAs). BIPPAs are bilateral treaties signed by two governments in order set up mutual security conditions for the investments made by the residents of one of the countries in the other. These agreements basically guarantee property rights, the free transfer of yields and disinvestment, non-discrimination, and the establishment of a mechanism to resolve any kind of controversy arising between foreign investors and the country in which the investment is being made.

Spain has signed agreements of this kind with nearly 70 countries. They benefit Spanish investors who receive a series of rights over and above those already provided by the legislation of the country in which the investment is being made. These agreements protect the investor company when it becomes established in the destination country, but they are also beneficial during the implementation phase. The risks protected are derived from the following: expropriation and nationalization, losses resulting from armed conflict and other equivalent circumstances, and transfers of the yields of the investment and other payments related to the investment.

Last updated: 02|11|2010