Foreign transaction reporting obligation: Form D4 and D8

Certain companies are obliged to file annual declarations with the Directorate General for Investments on investments abroad or with the participation of foreign investors in Spanish companies. Thus, before 30 September – for those companies whose year-end ends on 31/12 – they must submit to the Investment Register the annual report on foreign investment in Spanish companies and the annual report on the development of Spanish investment in foreign companies for the previous year.

These are the forms to be filed electronically, along with those obliged to file them:

Annual report on the development of investment in Spanish companies with foreign participation in their capital and branches: Form D-4.

They are obliged to file this report:

• Spanish companies with capital or equity exceeding 3,005,060.52 euros when the total shareholding of non-residents is equal to or exceeds 50% of the capital, or if a single non-resident investor has a shareholding equal to or exceeding 10% of the capital or of the total voting rights.
• Spanish holding companies or ETVEs, irrespective of their capital or equity when the total participation of non-residents is equal to or exceeds 50% of the capital or if a single non-resident investor has a participation equal to or exceeds 10% of the capital or of the total voting rights.
• Branches in Spain of foreign companies, irrespective of their capital or net worth.

Annual report on the development of Spanish investment in foreign companies: Form D-8

Spanish investors must submit this report in the case of investments in:

• Foreign companies whose net worth exceeds 1,502,530.27 euros, or its equivalent in the currency in which the balance sheet is expressed, and the shareholding in the capital or in the total voting rights is equal to or exceeds 10%.
• Foreign companies whose activity is the holding of shares in the capital of other companies, irrespective of the amount of the investment.
• Branches abroad, irrespective of the amount of the investment.

Both declarations must be submitted electronically using the aid programme established for this purpose and, where appropriate, providing the additional documentation requested in each specific case.

If you have any doubts regarding this reporting obligation, we remain at your disposal for analysis and submission.