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Spanish Legislation on Foreign Investments

Spanish Legislation on Foreign Investments

Updated on Monday 18th April 2016

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Spanish legislation on foreign investments.jpgSpain is an attractive destination for foreign entrepreneurs despite the economic crises that affected the whole country in the last years. This country ranks the second position in the top of the European countries receiving foreign direct investments that have increased starting 2013, when Spain began to recover from the economic crises and become more competitive. This country is an important receiver of FDI not only in Europe, but also at a global level, being in the top ten countries that attracted the largest amounts of FDI.  

Spain is an attractive destination for foreign investors due to its tourism and to the opportunities in other fields, such as research, renewable energies, broadcasting etc.

Most foreign investors choose to open a limited liability company, which is the simplest form for doing business in this country, or a subsidiary of their company based abroad. There are over 9,000 foreign citizens and entities that own a company registered in Spain and a third of them are established in Barcelona area. Most of the foreigners who come for doing business in Spain are from: the Netherlands, Luxembourg, UK, France, Italy and Germany and they invest in: financial businesses, manufacturing, real estate, construction and transport.

Why choose Spain for investing?


The foreign entrepreneurs choose Spain for performing an economic activity mainly because of the flexibility, the non-discrimination legislation and the quality of life the country has to offer. Spain offers the possibility to start a business to every foreign citizen who wants this and the rules are the same for locals and for foreigners. The free movement of the capital is guaranteed by Law no. 18/1992 and by Royal Decree no. 1816/1991.

There are a few sectors of the economy that are protected from investors outside EU: gaming, radio, television, air transport, manufacturing and selling arms. For the latter, the restrictions are applied also for investors in the European Union.

The foreign investors benefit from the provisions of the bilateral investment conventions concluded between Spain and over 50 countries. If you want to know more about the benefits and the incentives offered by the Spanish authorities for foreign entrepreneurs, you may contact our law firm in Spain. Our Spanish lawyers will present you the benefits for opening a business in Spain and they will help you open a company in this country.


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