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Foreign direct investment reviews 2025: A global perspective

What's inside

Understanding the ever-evolving global FDI landscape is crucial amid growing regulatory complexities in cross-border transactions and increased geopolitical tensions.

Introduction

Now a full decade in publication, White & Case's 2025 Foreign Direct Investment Reviews continues to provide a comprehensive look at foreign direct investment (FDI) laws and regulations across various countries and regions worldwide.

In this edition, we continue to offer key datapoints that can help inform parties and their advisors as they evaluate the new set of challenges presented by FDI screening requirements in cross-border transactions that span multiple countries.

FDI screening is continuously evolving, in fact, maturing. It is imperative to stay on top of the FDI requirements as transactions—be it mergers and acquisitions, investments, public equity offerings, or financial restructurings—are negotiated. Understanding the challenges, the potential remedies that could be required for approval and the proper allocation of FDI risk are key ingredients in avoiding unpleasant surprises related to timing, certainty and business plan execution.

With a new administration in the United States, a renewed US commitment to open foreign investment from allied countries, increased EU FDI cooperation, and the new geo-political lines and balances that are being drawn, the dynamics around FDI screening will be a driving consideration in the selection of investors in cross-border transactions. We continue to believe that most cross-border transactions will be successfully consummated in 2025, but understanding the evolving risks around FDI considerations will be critical.

Americas

Canada

The Canadian government continues to scrutinize foreign investments by state-owned enterprises and state-linked private investors, especially if from "non-likeminded" countries.

canada fdi 2022

Mexico

Foreign direct investments, whether undertaken directly or indirectly, are generally allowed without restrictions or without the need to obtain prior authorization from an administrative agency.

mexico fdi 2022

United States

In the US, most FDI deals are approved without mitigation, but the landscape is evolving based on a combination of expanded jurisdiction and authorities, mandatory filings applying in certain cases, enhanced focus on a broad array of national security considerations, increased rates of mitigation, further attention to monitoring, compliance and enforcement, and a substantially increased pursuit of non-notified transactions.

United States of America

EMEA

European Union

The European Commission continues to be a driver of FDI screening across the EU, with Member States now moving toward coordinated enforcement.

european union fdi 2022

Austria

The wide scope, low trigger thresholds and extensive interpretation of the Austrian FDI regime require a thorough assessment and proactive planning of the M&A process.

austria fdi 2022

Belgium

The Belgian FDI screening regime entered into force in July 2023. Investors and authorities alike are still coming to grips with the regime and the limited guidelines that help parties navigate it.

Belgium

Bulgaria

In 2024, Bulgaria established an FDI screening mechanism. Foreign investors' obligation to file for investment clearance did not become effective in 2024, but this should change soon.

Bulgaria

Czech Republic

The Czech Foreign Investments Screening Act took effect in May 2021, establishing the rights and duties of foreign investors and setting screening requirements for Czech targets.

czech republic fdi 2022

Denmark

The scope of the Danish FDI regime is comprehensive, and requires a careful assessment of investments and agreements involving Danish companies.

Denmark

Estonia

Estonia's FDI screening mechanism closed its first effective year in 2024.

estonia fdi 2022

Finland

FDI deals are generally not blocked in Finland, but the government is able to monitor and, if necessary, restrict foreign investment.

10_finland_square_800x800_0.jpg

France

French FDI screening continues to focus on foreign investments involving medical and biotech activities, food security activities or the treatment, storage and transmission of sensitive data. The nuclear ecosystem is subject to very close scrutiny.

france fdi 2022

Germany

Following numerous amendments over the past years, Germany's FDI review continued in full swing in 2024, with further significant updates expected in the coming years.

Germany

Hungary

Hungarian FDI regulation stands as a rock amid global economic storms, although there were few major changes in 2024.

hungary fdi 2022

Ireland

Ireland's Screening of Third Country Transactions Act entered into force on January 6, 2025.

ireland fdi 2022

Italy

Italy's "Golden Power Law" review more tan ten years old and continuously expanding its reach.

Italy

Latvia

The law in Latvia provides for sectoral FDI regimes for specific corporate M&A, real estate dealings and gambling companies.

Latvia

Lithuania

All investments concerning national security are under the scope of review in Lithuania.

Lithuania

Luxembourg

The Luxembourg FDI screening regime is now a year old, and the first notification filings have been made.

Luxembourg

Malta

Malta's FDI regime regulates specific transactions that must be notified to the authorities and may potentially be subject to screening.

Malta

Middle East

The Middle East continues to welcome foreign investment, subject to licensing approvals and ownership thresholds for certain business sectors or in certain geographical zones.

Middle East

Netherlands

The Netherlands is set to expand its investment screening regime by extending the general mechanism to more sectors and by introducing additional sector-specific regulations.

Netherlands

Norway

Norway's foreign direct investment regime is in the process of being expanded, with more profound changes expected in the future.

Norway

Poland

After revision of the Polish FDI regime in 2024, the way the authorities are assessing transactions is evolving.

Poland

Portugal

In Portugal, transactions involving acquisition of control over strategic assets by entities residing outside the EU or the EEA may be subject to FDI screening.

Portugal

Romania

While far-reaching in its scope, compared to other EU countries, the Romanian FDI regime is generally perceived as investor-friendly.

Romania

Russian Federation

The year 2024 was not marked by any major changes in the sphere of regulation of foreign investments in Russia, and the regulator continues to implement the course taken earlier in 2023.

Russian Federation

Slovakia

After two years of foreign investment regulation in Slovakia, a supportive climate for foreign investments remains.

Slovakia

Slovenia

Slovenia's updated FDI regime now extends to branch offices and introduces new challenges for foreign investors navigating critical sectors.

Slovenia

Spain

Since 2020, certain foreign direct investments are subject to scrutiny in Spain and, since then, additional formalities have been introduced, specifically by a developing FDI regulation that entered into force on September 1, 2023. The FDI analysis is becoming increasingly crucial in the context of investments in Spain.

Spain

Sweden

In its second year of operation, the Swedish FDI Act has become a standard component of a large portion of all transactions involving Swedish companies.

Sweden

Switzerland

Apart from limited sector-specific regulations, there is currently no general FDI regime in Switzerland. An FDI Act is expected to come into force in 2026 at the earliest.

Switzerland

Türkiye

Strengthening Türkiye's position as a key investment hub remains a government priority.

Turkiye

United Arab Emirates

Foreign direct investment is permissible in the UAE, subject to applicable licensing and ownership conditions.

UAE

United Kingdom

FDI in the UK is covered by the National Security and Investment Act 2021, and in 2024 the government continued to update information and guidelines concerning the legislation.

UK

Asia-Pacific

Australia

Australia's FDI regimes underwent some modifications in 2024, designed to streamline the process of carrying out investments.

Australia

China

China continues to optimize its foreign investment environment by reducing investment restrictions, opening up market access and lowering investment thresholds into listed companies.

China

India

FDI continues to be an area of focus for the Indian government, which has announced plans to attract further foreign investment into the country.

India

Japan

The Japanese government expands business sectors subject to Japan's FDI regime to secure stable supply chains and mitigate the risk of technology leakage and diversion of commercial technologies into military use.

Japan

Republic of Korea

The Republic of Korea continues to welcome foreign investment, offering enhanced incentive packages and easing regulations while heightening scrutiny over transactions involving strategic industrial.

Korea

New Zealand

New Zealand has recently seen a period of stabilization of the overseas investment regime. However, following the formation of the coalition government at the end of 2023, this government has proposed significant changes to the overseas investment rules for 2025, making it easier for overseas investors to acquire New Zealand assets.

New Zealand

Taiwan

Taiwan continues to promote FDI under a two-track screening mechanism for foreign and PRC investors.

Taiwan
Latvia

Foreign direct investment reviews 2025: Latvia

The law in Latvia provides for sectoral FDI regimes for specific corporate M&A, real estate dealings and gambling companies.

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The law provides no general obligation to notify FDIs in Latvia. Sectoral rules in specific circumstances will trigger notification obligations or block such investments regarding companies of significance to national security, including in critical infrastructure, agricultural land acquisition and gambling.

Summary of major changes in 2024

There were no major changes to the FDI regimes in force in Latvia in 2024.

Who files?

For companies of significance to national security, the national security regime requires filing regardless of the nationality or domicile of the investor. Even potential investors based in Latvia are subject to review.

The exception to the above is where a company of significance to national security receives a loan exceeding 10 percent of its assets. In such a case, the deal is subject to review when the investor is a natural person or a company with a UBO not based in Latvia, or an EU, EFTA, NATO or OECD member state.

An absolute ban has been introduced on Russian and Belarusian state companies, legal persons registered in Russia or Belarus, and Russian or Belarusian nationals wishing to invest in such companies.

Irrespective of the type of investor, objects with "critical infrastructure" status cannot be transferred without the permission of the Cabinet of Ministers.

When it comes to acquisition of land, different FDI regimes are applicable to land in urban administrative territories and land in rural administrative territories. Only deals exceeding the volume of land prescribed by law require approval.

Types of deals reviewed

Companies of significance to national security are broadly defined by law, and the list of current companies with this status is publicly available online. For companies of significance to national security, the Cabinet of Ministers must be notified and permission must be acquired for a number of activities.

In relation to capital companies, these activities are: the acquirement of a qualified holding; acquirement of decisive influence; transition of an undertaking; and replacement of the beneficial owner.

In relation to partnerships, these activities are: joining of a new member; and replacement of the beneficial owner.

Separate rules exist for loans exceeding the assets of the company by 10 percent.

The requirements for acquisitions of land and agricultural land does not apply to acquirers of agricultural land, if the total area of agricultural land in the acquirer’s possession does not exceed ten hectares for natural persons, five hectares for legal persons, or if the agricultural land to be acquired is the result of insolvency proceedings.

Regarding gambling companies, the share of foreign members or stockholders in the share capital of a capital company cannot exceed 49 percent. This requirement does not apply to investors from EU Member States, the EEA and the OECD. As this is an imperative prohibition, no review procedures exist.

Scope of the review

For companies of significance to national security and critical infrastructure objects, in determining the FDI review, the Cabinet of Ministers evaluates the restrictions on the rights of the person, its commensurability with national security interests and the opinion of a state security institution, as well as the conformity with the principle of legitimate expectations.

The cabinet may decide to refuse the permit if: the issuing of the permit threatens the interests of the national security; the person who has submitted the application has failed to submit additional information or documents necessary for preparation of opinion of the state security institutions within the period of time set by the Ministry of Economics and the state security institutions; or the Ministry of Economics or the state security institutions establish that they have been provided with false information.

For the acquisition of land, the municipality council makes a decision based on all received information to evaluate whether the acquirer meets the requirements in the law, restrictions in the law are met, and indicated further use of the land is not in contradiction with the spatial plan or detailed plan of the municipality.

Review process timeline

The Cabinet of Ministers should make its decision regarding investments concerning companies of significance to national security and critical infrastructure objects within one month from the moment of receiving the application. The term can be extended to four months.

Applications for change in agricultural land ownership will be reviewed within 20 days from the day of receiving an application in urban administrative territories. Applications for change in non-agricultural land ownership will be reviewed within 20 days from the day of receiving an application in rural administrative territories. Applications for change in agricultural land ownership will be reviewed within one month from the day of receiving an application in rural administrative territories.

How foreign investors can protect themselves

Rigorous legal due diligence is a must to identify FDI regulatory risks and other possible legal obstructions as early and accurately as possible.

Investors should make sure the contracts contain a contract termination clause should the relevant FDI permissions not be granted.

Processing times should be taken into account when submitting an application to the Cabinet of Ministers regarding companies of significance to national security or critical infrastructure. In the majority of cases, the cabinet reaches a decision within one month, but occasionally the decision-making process is extended by an additional month and can take up to four months.

Looking ahead: Likely developments in the next year

Likely developments are difficult to predict in a time of international uncertainty. It seems to be the case that the Latvian legislator is rather reactionary. Should more security concerns arise, either in Europe, the Near East or Far East, more targeted FDI restrictions are possible.

White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.

This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.

© 2025 White & Case LLP

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