Significant changes in the Spanish FDI regime: broader scope and protective rules that affect EU/EFTA investors

RDL 34/2020 introduces significant amendments to the current regime that hardens the conditions for the authorization of FDI. These amendments significantly widen the investments subject to authorization, both by including new transactions under the FDI regime, as is the case of certain investments by EU/EFTA² residents and by broadening the concept of control. The RDL 34/2020 clearly sets out that the purpose of these changes is no other than to increase the protection of strategic sectors of the Spanish economy in view of the effects of the crisis caused by Covid-19.

_{¹Law 19/2003, of July 4, on the legal regime of capital movements and foreign economic transactions.
²European Free Trade Association.}