Strategic Investment Projects in Spain: Royal Decree 731/2026 opens a new route to priority treatment

Spain has opened a new fast track for strategic investors. On 18 September 2026, Royal Decree 731/2026 (Royal Decree) came into force. It regulates the Strategic Investments Committee (the Committee) and sets out the criteria and procedure for declaring Strategic Investment Projects. 

The Royal Decree implements Article 29 of Royal Decree-law 7/2026 of 20 March, which introduced into Spanish State law the category of Strategic Investment Projects (Proyectos Estratégicos de Inversión, PEI). The granting of this status to a project offers a meaningful package of advantages and is the first statutory category of its kind at State level (since several Autonomous Communities already have their own legal frameworks for regional strategic projects).

This blog post outlines the new regime and its practical implications for investors and M&A transactions.

Eligibility criteria: Investment and reinvestment, not corporate transactions

For investors, the key point is what qualifies – and what does not. A PEI is any business or public-private initiative that (i) involves investment or reinvestment in Spain; (ii) improves technological, scientific or productive capacities; and (iii) serves public, social, environmental or economic interests for the country as a whole. Network infrastructure projects also qualify where they are needed to carry out a strategic project, provided they are included in the project for which the declaration is sought.

Corporate transactions –in particular, acquisitions of shares or equity interests, capital increases and reductions, and structural modifications of companies (mergers, spin-offs and similar)– are expressly excluded. The exclusion is a deliberate signal: the regime rewards investment that builds capacity, not deals that reshuffle ownership. For M&A practitioners, this means the PEI route is closed to pure acquisitions – only projects that bring new investment or reinvestment qualify.

Promoters must be in good standing. They must be up to date with their tax and Social Security obligations, have no debts outstanding with any public authority and not be insolvent or in default.

How projects are assessed: Criteria for the preliminary and final declarations

Understanding the assessment criteria early helps you gauge whether your project can clear the bar. The Royal Decree sets out two sets of criteriathat the Committee must consider, one for each phase of the procedure (described below).

For the preliminary declaration, two criteria take priority: 

1. an investment volume that is relevant nationally or, failing that, for the economy of the territory where the investment will be made; and 
2. the creation of a relevant volume of highly qualified jobs or, failing that, a significant volume of jobs in the local economy. The second criterion also covers preserving or retraining existing industrial jobs where the investment maintains strategic productive capacity. 

Projects that develop technology critical for European economic security and that stand out for their R&D impact may be exempted from the quantitative thresholds, although minimum R&D investment and hiring levels may be required.

The Committee will also assess, among other factors: 

1. strategic status under EU law –including the Strategic Technologies for Europe Platform (STEP) seal– or prior strategic status at regional level; 
2. alignment with EU industrial and green transition objectives; 
3. contribution to strategic autonomy and economic or national security; 
4. contribution to national industrial capacity, including defense, health and industrialized housing; 
5. support for sectoral or territorial reconversion and just transition areas; and 
6. the technical and economic soundness of the project.

For the final declaration, the assessment is more detailed. It covers, among others: 

1. the solidity and progress of the business plan; 
2. the project’s environmental contribution, measured, for example, through its carbon footprint or climate resilience; 
3. innovation effort, R&D spending and intellectual property; 
4. contribution to value chains and economic ecosystems; 
5. socioeconomic impact and territorial cohesion, especially in areas facing depopulation or just transition areas; 
6. workforce training, gender equality and social inclusion; 
7. projects that contribute to the development of net-zero emission technologies; and 
8. EU recognition, such as Important Projects of Common European Interest (IPCEI), STEP, Projects of Common Interestor (PCI), Projects of Mutual Interest (PMI) status or individually approved state aid.

The Autonomous Community where the project is located has 15 working days to give its view. If it does not respond, the final declaration can still proceed. No report is needed if the Community has already declared the project strategic.

Moreover, projects already declared as EU strategic projects (net-zero technology, critical raw materials, IPCEI and similar) get a lighter route. They obtain the preliminary declaration once they file a correct application, without an assessment on the merits. Additionally, where EU law requires national strategic status, the final-phase criteria are not assessed either. Eligibility, support measures, commitments and the Delegated Committee’s decision still apply.

The Royal Decree does not set numerical thresholds. The evaluation scale and methodology will set these thresholds. The Government Delegated Committee for Economic Affairs (the Delegated Committee) must approve them within one month of the Royal Decree’s publication (i.e., by 17 October 2026).

What does a PEI declaration offer?

The real value of a PEI declaration lies in the practical effects it can unlock – from faster permits to priority grid access. A final PEI declaration can trigger a package of practical effects: 

1. faster processing of all administrative proceedings related to the project; 
2. measures aimed at facilitating the project’s access to and connection with electricity, water, land transport or other infrastructure; 
3. measures to streamline access to public aid programs, with a possible exemption from showing public-interest grounds for direct grants; 
4. cooperation between the authorities involved; 
5. support throughout the life of the project, including in regional and local proceedings; and 
6. publicity for the project through official channels.

With regard to grid access, PEI may be given priority in terms of access and connection to the electricity grid where there is competition with other consumption; and a temporary reserve of access capacity may be established for these projects at one or more grid nodes, which the relevant transmission and/or distribution system operators must guarantee for a period to be determined.

Also, where the project is linked to an electricity generation and/or storage project on which its viability depends, and this is sufficiently substantiated, that generation and/or storage project may be given priority in the allocation of access and connection capacity for generation, should such capacity be reserved for allocation through a grid access tender. In such cases, the associated generation and/or storage projects may be given priority in the processing for obtaining the relevant administrative authorizations and environmental impact statements. The Committee may agree to process these proceedings urgently and halve all time limits.

The effects listed are not numerus clausus. The final declaration may also include any other measure that the Committee considers will help carry out the project, provided the Delegated Committee approves it; and any support measures that the promoter itself requests as necessary for the project, provided the Committee considers it proportionate, effective and viable. This second route gives promoters a central role; they should therefore identify their needs early (e.g., grid access, priority processing or funding) and include a well-reasoned support request in their application.

The Strategic Investments Committee: the new gatekeeper

Knowing who decided – and how – is essential to navigating the process effectively. The Committee is an interministerial body attached to the Economic Affairs and G20 Office of the Prime Minister’s Office. It is co-chaired by the head of the Economic Affairs and G20 Office and the Secretary of State for Economy and Business Support, and includes representatives of most ministries and ICEX (Spain’s trade and investment promotion agency). A Technical Secretariat supports the Committee and appoints, for each application, the unit that will investigate it.

The Committee, among other functions: (i) proposes the evaluation scale and methodology; (ii) assesses applications; (iii) grants preliminary declarations and proposes final declarations, together with the measures and commitments attached; (iv) monitors promoters’ compliance and the execution of the project; and (v) proposes revocation where promoters breach their commitments.

The final decision lies with the Government Delegated Committee for Economic Affairs (the Delegated Committee). On the Committee’s proposal, it adopts the final declaration or declares inadmissible or rejects the application, and it decides on revocation. It also approves the evaluation scale and methodology and resolves any persistent disagreement between the Committee’s co-chairs.

The procedure: Two phases and fixed deadlines

To two-phase process is designed to be predictable, but the fixed deadlines mean timing is everything. The promoter starts the procedure by filing an electronic application accompanied by a responsible statement (declaración responsable) confirming that it meets the eligibility requirements (i.e., tax, Social Security, no debts, no insolvency) and providing documentation on the preliminary criteria. The Committee may ask for supporting documents at any time.

1. First phase – preliminary declaration. The investigating unit checks eligibility and assesses the preliminary criteria. The Committee has one month from the application to grant the preliminary declaration or to propose to the Delegated Committee that the application be inadmissible or rejected. The period can be suspended while the promoter remedies deficiencies.

   An application is treated as manifestly unfounded if the same project was rejected in the previous year, meaning the same location, sector, promoters and type of activity. Applications that fail the eligibility conditions are also inadmissible. The preliminary declaration is only a proposal and carries no effects.

2. Second phase – final declaration. After the preliminary declaration, the promoter receives a detailed information request covering the final criteria, the duly justified support measures required for the project to be carried out successfully and the commitments it will take on. The Delegated Committee decides within three months from the application date (not from the preliminary declaration). If no decision is notified within that period, the application is deemed rejected.

If the project needs foreign direct investment (FDI) authorization under the Spanish FDI regime (Law 19/2003 and Royal Decree 571/2023), the final declaration cannot be granted until that authorization is obtained. Any FDI conditions become PEI obligations.

The final decision of the Delegated Committee can be challenged by an optional administrative appeal (recurso de reposición) or directly before the contentious-administrative courts. Declared projects will be published in the Official State Gazette, with due regard to confidentiality.

Monitoring, modifications and revocation

A PEI declaration is not set-and-forget – ongoing obligations and approval gates apply throughout the project’s life. The final declaration names a monitoring unit from the responsible ministry. The Committee can inspect at any time, working with regional and local authorities, and promoters have 15 working days to hand over any documents requested.

Once a project is declared strategic, any modification affecting its essential elements counts as substantial. This includes, in particular, changes of ownership and variations of more than 10% in committed employment or planned investment. The promoter must notify these modifications to the Committee before carrying them out, and the Committee will authorize or refuse them. Unauthorized modifications can lead to revocation.

The Committee may start revocation proceedings if the promoter breaches its conditions or commitments, or falsifies or conceals relevant data. Revocation means losing the final declaration and the support measures. For unjustified partial breaches, however, the Committee may withdraw only some measures and keep the project’s PEI status. The proceedings are decided by the Delegated Committee after a hearing to the promoter and must end within three months If they are not completed within that period, the proceedings lapse, although new proceedings may be started.

Practical considerations for investors and promoters

• Timing of the opening. Applications cannot be filed until four steps are complete: (i) the Committee is constituted; (ii) the electronic filing system is enabled; (iii) the evaluation scale and methodology are published; and (iv) a joint ministerial order sets the opening date. The Committee, the electronic filing system and the joint order are due within one month of entry into force (18 October 2026) and the evaluation scale within one month of publication (17 October 2026). The early general election on 29 November 2026 may, however, cause delays.
• New deadlines to consider. Investors should build the deadlines for the preliminary and final declarations (one and three months from the application) into the project timetable and should coordinate them with other sector authorizations and permits. In particular, FDI deserves close attention for two reasons: (i) where FDI authorization is required, the final declaration cannot be granted until it is obtained – a delay in the FDI process will therefore delay the PEI declaration as well; and (ii) any conditions or commitments attached to the FDI authorization automatically become obligations of the PEI declaration; a breach of an FDI condition could therefore also trigger revocation of PEI status and loss of the support measures.

• Transactions involving PEI assets. The Royal Decree treats any change of ownership and any variation of more than 10% in committed employment or investment, as a substantial modification that needs the Committee’s prior authorization. On change of ownership, the Royal Decree does not say whether only direct transfers of the project are caught, or also indirect changes, such as a share deal at the level of the promoter or its parent. Nor does it set a percentage or control threshold. This provision restricts the promoter’s freedom, so it should be read narrowly — covering only a change in the holder of the project itself. Until the authorities clarify the point, however, buyers should take a cautious approach and assess, case by case, whether to seek authorization.

  The Royal Decree also sets no deadline for the Committee to decide on these modifications. The general regime will therefore apply, which sets a default maximum of three months.

• New deal protections. Due diligence should cover the PEI declaration, the support measures, the commitments (including any FDI conditions) and any open monitoring or revocation proceedings. Also, purchase agreements should include a condition precedent requiring the Committee’s authorization, where relevant.

The Royal Decree creates a genuine fast track for strategic investors, but it also introduces new approval gates and ongoing obligations. For investors and promoters, the message is clear: assess PEI status early, request support measures tailored to your project, and build the deadlines into your timetable.

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