Direct investment

Definition

Category of the financial account of the Balance of Payments (BoP) and the International Investment Position (IIP) that records all financial transactions (BoP) or net positions (IIP) between resident and non-resident companies that maintain a direct investment relationship.

Further information

Direct investment relationships involve control or a significant degree of influence over the management of a company that is resident in another economy. In practice, it is assumed that for ownership, this participation must be at least 10% of the ordinary shares or voting rights. Direct investment also includes reverse financial transactions or positions, from the subsidiary to the parent company or between subsidiaries of the same parent company.

The Balance of Payments and the International Investment Position. Methodological Note.

Related concepts

References

Legal frame

Links to data tables

Selection of tables

Other resources

Update date: January 2025

Statistics Information Service

  • Telephone: +34 91 338 5651
  • Monday to Friday, from 9:00 AM to 2:00 PM