With the much-debated reforms to Act 19/2003, of 4 July, on capital movements (“Act 19/2003”), the Spanish foreign direct investment (“FDI”) regime has been expanded over the past few years. However, FDI screening in relation to defense investments predates Act 19/2003 (and the recent FDI hype more broadly), and was regulated in Royal Decree 664/1999 of 23 April, on foreign investments (“RD 664/1999”). More precisely, Article 11 suspends the general liberalization regime for investments in “activities directly related to defense”. Both regimes apply concurrently to investments in defense in Spain.
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