How would Spain’s proposed changes alter the checks that foreign investors and new infrastructure projects face before proceeding?
A wider gateway for foreign investment
Spain’s Economy Ministry is consulting on changes to the country’s foreign-investment screening system, which has required government approval for any significant foreign acquisition in a strategic sector since 2020. The proposed reform would amend Law 19/2003 and Royal Decree 571/2023, with the stated aim of clarifying concepts and improving procedures. The mechanism is an investment-control test, not an assessment of competing tenders: the government examines whether a transaction falls within protected areas before it can proceed. That distinction matters for businesses involved in acquisitions, infrastructure development or projects that may rely on overseas capital.
EU investors and new projects would be covered
The government proposes making the current authorisation requirement for investors from the European Union permanent. At present, that temporary measure is due to expire in December 2026, although the government wants to extend it until the end of 2027 while pursuing a legal change with no end date. The reform would also add data centres to the strategic sectors covered by the shield. Screening would extend beyond purchases of stakes in operating companies to greenfield investment: the construction of new technology and energy infrastructure. That could add a prior-approval stage to projects that do not involve buying an existing Spanish business.
A two-stage review is proposed
The proposed procedure would divide authorisation into two phases. Cases considered more sensitive would receive an in-depth investigation before the Board of Foreign Investments, known as JINVEX, submits its recommendation to the Council of Ministers. The ministry also intends to specify how the authorisation process could be extended. In theory, the procedure should last three months, but the article says it often runs longer. The proposals are currently at the public-consultation stage. After considering submissions, the government may prepare draft reforms for legislative approval, so the changes described are not yet in force.
Investment effects remain contested
The screening system has already been used in high-profile cases, including the government’s veto of Magyar Vagon’s proposed takeover of Talgo and conditions on Saudi Telecom Company’s entry into Telefónica. In 2025, 144 transactions went through the review process. Gross foreign direct investment in Spain fell by 20% that year to 34.016 billion euros, alongside higher financing costs. The article does not establish that screening caused the fall. It reports that experts believe the system may discourage bids for large Spanish companies, while noting that the great majority of transactions are approved.
IN NUMBERS
For investors and project sponsors, the proposed reform would make sector classification, prior authorisation and the possible length of review central issues before an acquisition or new infrastructure project is launched.
Reported from expansion.com, 2026-09-20. The Tender Wire is published by Otnox.
