Under the new regime, foreign direct investments exceeding €1 million need prior authorization
The exceptional circumstances brought about by the COVID-19 outbreak led the Spanish government to enact a number of urgent regulations in 2020, establishing a new screening mechanism for certain foreign investments by virtue of Royal Decree Laws 8/2020, 11/2020 and 34/2020.
The health crisis situation caused by the Covid-19 pandemic obliged the Spanish Government to adopt various exceptional labour measures, mainly in the form of Royal Decree-laws, designed to stabilise employment and prevent the massive destruction of jobs by implementing internal flexiblility mechanisms and reducing social security contribution payments. Some of these measures have been updated and/or extended over these past months and maintained even after the state of emergency in Spain has ended.
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COVID-19 pandemic led Spanish Government to enact three Royal Decree-Laws during 2020, imposing restrictive measures on Spanish FDI regime.
Before the COVID-19 outbreak, the Spanish foreign direct investment ( FDI ) regime established by Law 19/2003 only included a post-investment notification, and a pre-authorization for some limited specific transactions. Apart from this, no further limitations were imposed on foreign investment.
In response to the COVID-19 pandemic, and in order to prevent opportunistic foreign investments in critical sectors, such as national security and public health, the Spanish government enacted in 2020 three Royal Decree-Laws, introducing amendments to Law 19/2003 and anticipating the yet-to-be transposed rules of Regulation (EU) 2019/452, of March 2019.