In Spain, foreign capital investments in Spanish companies must be declared through a specific process regulated by the Foreign Investment Registry of the Ministry of Economy, Industry, and Competitiveness. This process includes the submission of certain declaration forms depending on the nature of the investment and whether the investor resides within the European Economic Area (EEA).
Declaration Models:
- Model D-1A: This model is used to declare direct foreign investments in Spanish companies by investors residing outside the European Economic Area. It includes the acquisition of shares or stakes in Spanish companies, capital increases, and the establishment of new companies with foreign participation. It must be submitted after the investment is made.
- Model D-1B: This model is for declaring Spanish investments abroad, but is mentioned here for a complete context of the international investment declaration system.
- Model D-2: Used for the quarterly and annual declaration of foreign investments in the form of loans, credits, current accounts, and other financial means, applicable to companies with significant foreign participation.
Declaration Process:
- Initial Declaration (Model D-1A): Must be submitted after carrying out the transaction that involves foreign direct investment. The declaration is made electronically through the electronic headquarters of the Ministry of Economy, Industry, and Competitiveness.
- Annual Declaration: In addition to the initial declaration, companies with foreign investment must submit an annual declaration if the investment exceeds certain thresholds. This allows the government to monitor and control the impact and nature of foreign investments in Spain.
Important Aspects:
- Declaration Obligation: It is mandatory that all direct foreign investments in Spanish companies be declared, except those made by investors from the EEA that do not exceed certain limits set by the regulations.
- Exceptions: Investments made by residents of EEA countries and certain other exceptions based on the amount of investment or the type of investment may be exempt from some of these declarations, but it is essential to review specific regulations or consult an expert to confirm these details.
- Consequences of Non-Compliance: Failure to submit the required declarations can lead to financial penalties and other legal consequences, so it is crucial to adhere to the established deadlines and requirements.
In summary, to declare a foreign capital investment in Spanish companies, Model D-1A is primarily used, and the process includes a series of periodic declarations to keep the registry updated on the status and details of foreign investment in the country.