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Spanish Legislation Related to Foreign Investments

Spanish Legislation Related to Foreign Investments

Spain has a favorable regime for foreign investments and entrepreneurs who decide to open a company in Spain find multiple business opportunities here. EU residents and non-EU residents benefit from the same investment climate and the law is permissive in this matter: there are no restrictions regarding nationality when investing in Spain.

The foreign investments regime in Spain

The Spanish law regarding foreign investments is aligned with the EU principles, exchange controls, capital movements and liberalization. In general, foreign investments must be notified after the investment has been made.

The video below offers further information on the Spanish legislation for foreign investments:

Investments in certain areas are subject to more control and are regulated by laws which are specific to the sector in question. Some of the regulated business sectors in Spain include: air transportation, radio and television, gaming, telecommunications, private security, certain manufacturing industries, the marketing, manufacturing or distribution of fire arms and national security activities. Business owners in Spain will also need to obtain special permits and licenses if they decide to operate in a business sector that requires additional approvals. Foreign investments made directly in connection to national security and defense will need special approval from the Council of Ministers.

Any company incorporated in Spain, whether owned by a foreigner or having foreign shareholders, will need to observe the taxation laws and the requirements for VAT registration depending on its activities.

Setting up a company in Spain

There are several types of companies that can be opened in Spain and investors can choose the one that suits their business needs best in terms of management, size, tax and auditing compliance.

Foreign companies can also choose to open a branch in Spain or, if they want to have more maneuverability in the country they can open a subsidiary. The choice belongs to the investor but a company formation specialist in Spain can help any entrepreneur decide what legal form suits his interests.

For detailed information about how to open a company in Spain as well as the laws and regulations governing investments and foreign ownership you can contact our company registration agents in Spain.