New Spanish Foreign-Direct-Investment Regulations

6 July 2023

The Spanish Government has approved new foreign-direct-investment (FDI) regulations. These new Spanish FDI regulations will come into force on 1 September 2023.

The existing screening mechanisms for specific FDIs (“Screening Mechanisms”) have been amended and developed. In this regard:

  • the legal term to undergo Screening Mechanisms is reduced from six to three months;
  • there is a new exemption regime based on the business activities each target carries out;
  • interpretation criteria for specific ambiguous issues are now expressly regulated, provided, however, that the criteria essentially formalise the authorities’ consistent application of existing FDI laws; and
  • a new screening framework for Defence FDIs is approved, with new exemptions for investments below 5% and, subject to specific requirements, between 5% and 10% of the target’s share capital.