Spain: Publication of the long-awaited royal decree on foreign investment implementing Law 19/2003
The new regulations, which enter into force on September 1, provide greater clarity and legal certainty to the rules governing foreign investments.
Royal Decree 571/2023, of July 4, 2023, on foreign investment was published in the Official State Gazette on July 5, 2023 and will enter into force on September 1, 2023.
This royal decree updates the current legislation in certain aspects and attempts to provide greater clarity on the rules governing the suspension of the regime for deregulation of direct foreign investments introduced as a result of the COVID-19 pandemic and provided for in article 7 bis of Law 19/2003, of July 4, 2003, on the legal regime for movements of capital and cross-border economic transactions.
Among other aspects, it provides greater detail on the transposition into Spanish law of the essential rules and principles established in Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 and it repeals the now obsolete Royal Decree 664/1999, of April 23, 1999.
In this document we address the most relevant aspects of Royal Decree 571/2023.