Is Spain Open to Foreign Investment?
Yes — Spain is open and welcoming to foreign investment, and the legal framework encourages international capital inflows. However, certain regulations apply to ensure national security, financial stability, and sector-specific control.
Foreign investors must comply with Spanish and EU regulations, and in some cases, prior government authorization is required.
⚖️ Key Legal Framework for Foreign Investments in Spain
Foreign investments in Spain are regulated primarily through:
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Law 19/2003 on capital movements and economic transactions abroad
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Royal Decree 664/1999, which was partially suspended in strategic sectors
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EU Regulation 2019/452, establishing a framework for FDI screening within the EU
These laws govern registration, authorization, and transparency of foreign investments in Spain.
🔍 When Prior Authorization Is Required
Spain implemented stricter FDI screening mechanisms to protect strategic sectors. Foreign investors must obtain prior approval if:
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The investor is non-EU or non-EFTA
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Acquiring 10% or more of a Spanish company in certain sectors
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Participating in management or control of a Spanish entity
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Investing in sectors related to:
| Sector | Example |
|---|---|
| 🛡️ National Defense & Security | Arms, defense systems |
| ⚡ Energy | Critical energy infrastructure |
| 💾 Data & Tech | AI, robotics, semiconductors, cybersecurity |
| 🏥 Healthcare | Biotech, critical public health infrastructure |
| 🏛️ Public Infrastructure | Water, transport, telecom networks |
✅ Sectors Generally Open to FDI
Outside the restricted sectors, Spain allows foreign investment freely, including:
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Real estate
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Tourism and hospitality
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Retail and e-commerce
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Startups and tech ventures
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Manufacturing and logistics
These investments typically only require post-investment reporting to the Spanish Directorate of Trade and Investments.
📝 Foreign Investment Reporting Requirements
Even if no prior approval is needed, investors must comply with reporting obligations:
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Declaration D-1A: Before executing certain investments
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Form D-1B: Post-investment declaration
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Annual reporting for ongoing foreign participations in Spanish companies
All filings are submitted through the Ministry of Industry, Trade and Tourism.
🏢 Real Estate Investments by Non-Residents
Non-resident individuals and entities can freely invest in Spanish real estate. However:
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Military and coastal zones may require special authorization
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All investments must be declared to the Register of Foreign Investments
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Financing through Spanish banks must comply with AML laws and exchange control
🔐 Legal Protections for Foreign Investors
Spain provides strong legal guarantees, including:
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🇪🇺 EU membership protections for intra-EU investors
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🧾 Bilateral Investment Treaties (BITs) with over 80 countries
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🧑⚖️ Access to arbitration under ICSID, UNCITRAL, or other treaties
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🛡️ Property rights protected under the Spanish Constitution
🤝 How Borderless Lawyers Can Help
Our international investment lawyers offer:
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📚 Regulatory analysis of your target sector
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📝 Assistance with filing D-1A / D-1B declarations
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⚠️ Guidance on FDI authorization process for restricted sectors
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🏢 Support with real estate or business acquisitions
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💼 Cross-border due diligence and corporate structuring
🚀 Invest in Spain with Confidence
Whether you’re investing in real estate, acquiring a business, or launching a new venture, our lawyers will make sure your foreign investment in Spain is legally protected and fully compliant.