Regulatory Alerts2023-07-05
Royal Decree 571/2023, of July 4, on Foreign Investments
The Spanish Ministry of Industry, Commerce and Tourism issued Royal Decree 571/2023 to update the legal framework for foreign direct investment, replacing the 1999 decree to align with EU Regulation 2019/452 and OECD statistical standards. The decree establishes mandatory declaration obligations for foreign investments in Spain and Spanish investments abroad, while introducing a voluntary consultation procedure and specific authorization regimes for investments affecting national security, public order, and defense. It also streamlines administrative procedures, reduces reporting burdens for portfolio investments, and strengthens cooperation mechanisms for screening foreign direct investments from non-EU countries.
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