Declare foreign investments in Spain
You may be looking for information on foreign investments in Spain. In this article we will talk about it and try to clear up your doubts. The EU allows unrestricted capital movements and payments, not only within the EU, but also between EU countries and countries outside the EU.
This applies to foreign investments carried out in Spain, since Spain is a member of the EU. For this, there is a general regime in which foreign investment is carried out completely freely, but with one condition, the obligation to declare.
Foreign investments in Spain are established in several laws
- Law 18/1992, of 1 July. It establishes several rules on foreign investments.
- Royal Decree 664/1999 of 23 April 1999 on foreign investment.
- Order of 28 May 2001 of the Ministry of Economy, relating to the procedure of declaration of foreign investments and divestments, as well as annual reports and authorisations.
- Law 19/2003, on the legal regime of capital movements and also of economic transactions carried out with other countries. This Law was amended by Law 10/2010, of 28 April, established to prevent money laundering as well as the financing of terrorism.
- Royal Decree 54/2005, establishing different measures in relation to the prevention of money laundering.
Who should declare foreign investments in Spain?
- Non-residents in Spain, which includes Spanish citizens whose main residence is abroad.
- Foreign companies as well as public entities with foreign nationality.
It should be borne in mind that foreign investments must be declared to the Foreign Investment Registry of the Ministry of Economy, Industry and Competition. The process can be done in two different ways:
Model D1-A, which applies to the declaration of foreign investments in Spanish companies that are not listed on the Stock Exchange, as well as branches and other forms of investment.
Model D1-B, which is used to declare the settlement of foreign investment in non-listed companies, as well as branches and other forms of investment.
It must be submitted through the online platform of the Secretary of Commerce, within a maximum period of one month from the end of the investment.