Investment regulation - Spain


Holding restrictions

Foreign investment in Spain and its settlement is generally deregulated according to Royal Decree (RD) 664/1999. This deregulation may be suspended under the following circumstances:

  • The Council of Ministers may decide to suspend general deregulation measures in the event that the investments affect activities related to the exercise of public power, public order, security and public health. In this case it is necessary to request prior administrative authorisation.
  • Activities directly related to National Defence require prior administrative authorisation and in addition are covered by special conditions (production of weapons, ammunition, explosives and war material).
  • Special conditions that affect foreign investment in Spain in matters of air transport, radio, minerals, mineral raw materials of strategic interest and mining rights, television, gambling and telecommunications. This kind of investment must meet the specific legislation that regulates each sector regarding prior authorisations or administrative communications.

The above restrictions are directly related to RD 664/1999 and Law 18/1992 that determine the rules of foreign investment in Spain in matters of air transport, radio and minerals.