Legal system for foreingn investments in the Basque Country

DECLARATION

REGLA GENERAL Libertad de inversión sin necesidad de autorización ni comunicación previa. Plazo máximo de 1 mes para declarar la inversión a la Dirección General de Comercio Internacional e Inversiones de la Secretaría de Estado de Comercio.
EXCEPCIONES Procedentes de paraísos fiscales Necesidad de realizar una declaración administrativa previa* a la inversión sin necesidad de esperar a la notificación confirmatoria de la Administración para efectuarla. Conlleva la obligación de realizar la inversión en un plazo máximo de 6 meses a contar desde la declaración previa realizada..
Defensa nacional e inmuebles para sedes diplomáticas de países no Miembros de la UE. Sujetas a autorización previa del Consejo de Ministros del Gobierno de España.
Sectoriales Requisitos exigidos por los órganos competentes en la legislación sectorial específica en base a sus normativas propias (transporte aéreo, radio, materias primas, minerales, televisión, juego, telecomunicaciones, seguridad privada, armas y explosivos).

* Exceptions to the need for prior declaration regarding investments originating from tax havens

1. Investments in marketable securities issued or offered publicly, as well as holdings in investment funds recorded in the registers of the Spanish National Securities Market Commission.

2. Foreign holding that does not exceed 50% of the capital of the Spanish company receiving the investment.

3. Acquisitions of foreign investments in Spain as a result of inter vivos or mortis causa gratuitous transfers.

Non-resident4 HOLDERS WITH AN OBLIGATION TO DECLARE as a general rule (and the notary public where applicable), except for certain transactions5

In general, an investment will be declared by the investor (the non-resident holder). When the transaction has involved a Spanish notary public, the latter is obliged to submit information on said transactions to the Investment Register.

4 Unless there is an express rule to the contrary, foreign investments must not be formalised before a Spanish notary public. Only as a result of their legal system or by agreement of the parties.
5 Exceptions contained in the Foreign Investment Regime Table in the ACBC.

Investor
(holder of a foreign investment)

  • Individuals not resident in Spain 6.
  • Legal entities domiciled abroad.
  • Public entities with foreign soveregnty7.

Investment target
(types of investment transactions subject to declarations8)

  • Holdings in Spanish companies9.
  • Establishment and expansion of branch offices.
  • Subscription and acquisition of securities representing borrowings issued by residents (bonds, debentures, promissory notes). Holdings in investment funds registered in the Registers of the Spanish National Securities Commission.
  • The acquisition by non-residents of properties situated in Spain, the amount of which exceeds 3,005,060 euros, or when the investment comes from tax havens, regardless of the amount.
  • The constitution, formalisation or holdings in joint venture agreements, foundations, economic interest groupings, cooperatives and joint ownership arrangements, with the same conditions applicable to the acquisition of properties by non-residents.

Obligation to declare

  • In general, an investment will be declared by the investor.
  • When the transaction has involved a Spanish notary public, the latter is obliged to submit information on said transactions to the Investment Register.
  • Exceptions:
    • In the case of investments in securities, investment service companies, credit institutions or other intermediary financial institutions have an obligation to declare.
    • In the case of investments made in securities not traded on secondary markets, but where the parties have voluntarily deposited or registered such securities, the depositary or administrator of such securities has an obligation to declare.
    • In the case of investments in Spanish investment funds, the fund management company has an obligation to declare.

Monitoring

The Directorate General of International Trade and Investments of the Ministry of Economy, Industry and Competitiveness of the Spanish Government may require Spanish branches of non-resident holders to submit an annual report on the execution of investments or any other type of information they deem necessary.

Declaration forms

A1: «Declaration of foreign investment in securities. Monthly or annual summary».
A2: «Declaration of foreign investment in securities. List of monthly transactions or annual deposits».
DP-1: «Prior declaration of foreign investment from tax havens in non-listed companies, branches and other forms of investment».
DP-2: «Prior declaration of foreign investment from tax havens in property».
D-1A: «Declaration of foreign investment in non-listed companies, branches and other forms of investment».
D-1B: «Declaration of liquidation of foreign investment in non-listed companies, branches and other forms of investment».
D-1A: «Declaration of foreign investment in property».
D-1A: «Declaration of liquidation of foreign investment in property».
D-4: «Annual report on the development of investment in Spanish companies with foreign holdings in their capital and branches».

3 Españoles o extranjeros domiciliados en el extranjero, o que tengan allí su residencia principal. Las personas físicas de nacionalidad española y las personas jurídicas domiciliadas en España se presumen residentes en España salvo prueba en contrario.
4 No se considera como sujeto inversor a una sociedad española que esté participada mayoritariamente por capital extranjero. El cambio de domicilio social de personas jurídicas o el traslado de residencia de personas físicas determinarán el cambio en la calificación de una inversión como española en el exterior o extranjera en España.
5 La tipología de operaciones de inversión no contempladas (como por ejemplo los préstamos participativos) están totalmente liberalizadas, sin que sea necesaria ninguna comunicación al respecto. Ello sin perjuicio de la normativa sectorial que pudiera serles de aplicación y de lo dispuesto en las normas relativas a control de ést.as
6 Se incluye tanto la constitución de la sociedad, como la suscripción y adquisición total o parcial de sus acciones o asunción de participaciones sociales. También se incluyen derechos de suscripción de acciones, obligaciones convertibles en acciones u otros valores análogos que por su naturaleza den derecho a la participación en el capital, así como cualquier negocio jurídico en virtud del cual se adquieran derechos políticos.

5th edition · 2023

INVEST IN THE BASQUE COUNTRY.