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Clifford Chance

Clifford Chance


Coronavirus: New barriers to Foreign Direct Investment in Spain

19 March 2020

Spanish Royal Decree-Law 8/2020, of 17 March, on urgent extraordinary measures to address the economic and social impact of COVID-19 (the "RDL") has suspended, effective as of 18 March 2020, the regime on the deregulation of foreign direct investment in Spain, indefinitely, until the Spanish Government decides otherwise. It has added a new Article 7 bis for this purpose and has established new rules on sanctions in Articles 8 and 12 of Act 19/2003, of 4 July, on the legal regime governing the movement of capital and financial transactions with foreign countries. The RDL is based in this regard on Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union ("Regulation 2019/452"), and reproduces some of its provisions practically word for word.

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