Extends the FDI screening regime for EU and EFTA investors to 2026
29 Jan 2025
On 29 January 2025, the Government of Spain issued Decree-Law 1/2025, extending the requirement for prior authorization of foreign direct investments in Spain by European Union and the European Free Trade Association residents until 31 December 2026. This requirement applies to investments exceeding €500 million or those involving listed companies in Spain. The measure aims to maintain control over foreign investments in strategic sectors affecting public order, security, and public health.
The prior authorization regime, originally introduced in Royal Decree-Law 8/2020, requires non- European Union and non-European Free Trade Association investors acquiring 10 per cent or more of a Spanish company or gaining control over it to obtain government approval. This requirement was temporarily extended in 2020 to European Union and the European Free Trade Association investors and has undergone multiple renewals, including the current extension until 31 December 2026.
Nature of measure:
Type:
-
Entry and establishment (Approval and admission - screening)
Industry:
Inward FDI:
No
Outward FDI:
No
Sources:
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Boletin Oficial del Estado, Real Decreto-ley 1/2025, de 28 de enero, por el que se aprueban medidas urgentes en materia económica, de transporte, de Seguridad Social, y para hacer frente a situaciones de vulnerabilidad., https://www.boe.es/buscar/act.php?id=BOE-A-2025-1560, 28 Jan 2025
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Lexology, Se extiende de nuevo hasta el 31 de diciembre de 2026 el régimen transitorio para inversiones realizadas por residentes de la UE y de la AELC en España, https://www.lexology.com/library/detail.aspx?g=52ef218f-2e46-4073-8c3e-17f03850387c&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2025-02-03&utm_term=, 30 Jan 2025
