On returning from the holidays and at the start of the new academic year, we may find ourselves faced with a commercial obligation which, despite being far removed from the fiscal, tax or corporate obligations that must be fulfilled before the Tax Agency, Social Security or the Commercial Register, is of great importance due to its informative nature before the Ministry of Industry, Trade and Tourism.
Form D4 is an annual report on the development of foreign investment in Spanish companies, with a filing deadline of 9 months from the end of the financial year in question. Therefore, the deadline for submission is 30 September for those companies whose financial year coincides with the calendar year.
This annual report is compulsory for certain companies that meet a series of requirements in relation to capital or equity and the participation of non-resident entities in Spain, which must be greater than 3,005,060.52 euros and that their total non-resident participation is equal to or greater than 50% of the capital, or if a single non-resident investor has a participation equal to or greater than 10% of the capital or of the total voting rights. These requirements extend to Spanish holding companies as well as to branches in Spain.
This annual obligation before the Ministry of Commerce and in relation to foreign investments or vice versa would not be the only one, as there are other declaratory obligations that must be filed before this Agency when the circumstances arise in accordance with the regulations in force, such as Form D-1A, D-1B, D-2A, D-2B, D-8, etc.
If you have any doubts regarding the informative declarations of foreign investments in Spanish companies or investments of Spanish companies abroad, please do not hesitate to contact our MDG team for advice on Tax Compliance.
