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foreign direct investment info corner

This info corner provides an up-to-date overview of the currently existing FDI regimes in the CEE, covering the following aspects: Filing requirements, process and timetable, legal basis and related Schoenherr publications. Following the trend to tighten and set up FDI screening mechanisms, it will also keep pace with ongoing developments in jurisdictions where new rules are in the pipeline and therefore be continuously updated.

We have prepared a booklet that provides an up-to-date overview of the currently existing FDI regimes in CEE. Following the trend to tighten / set up FDI screening mechanisms, it will also keep pace with ongoing developments in jurisdictions where new rules are in the pipeline and therefore be continuously updated.
Click on each country to expand further information.

As of 11 October 2020 the EU FDI Screening Regulation is in force, ending the long wait for a Union framework to screen foreign direct investments. The umbrella spanned by the EU FDI Regulation is a further (crucial) building block in the EU's endeavours to tighten and coordinate the screening of foreign direct investments.

Please see here for more information.

A (mandatory) filing requirement is triggered if a foreign investor intends to carry out an investment (directly/indirectly) in an Austrian undertaking.

This includes (i) the acquisition of shares reaching/exceeding 10 %, 25 % and 50 % (voting rights), (ii) the acquisition of control, and (iii) the acquisition of essential/all assets of an undertaking (asset deals), provided that (a) the undertaking is active in a critical sector, and (b) the undertaking is Austrian, i.e. has its seat or its central administration in Austria (local nexus).

Please see here for more information.

New FDI legislation will enter into force on 1 May 2021. It introduces a mandatory, suspensory, pre-closing notification obligation for acquisitions of “effective control” over Czech companies active in industries deemed capable of threatening the security of the Czech Republic and internal or public order by parties resident outside of the European Union, or whose ultimate controlling parent is resident outside of the European Union.

Mandatory notifications can take the form of either (i) a mandatory FDI filing or (ii) a mandatory FDI consultation. If unclear whether a transaction constitutes a notifiable FDI, the Foreign Investor can make use of a consulting procedure.

Please see here for more information.

Although there is no FDI filing requirement in Croatia, the Implementing Regulation has established the National Contact Point and the Interdepartmental Commission, which will act as the competent authorities for a coordination mechanism under the EU FDI Screening Regulation.

Please see here for more information.

Hungary has enacted two separate sets of FDI rules. The different regimes relate to different investors, and protect different companies/sectors. The relevant authorities, the procedural rules and fines are also different. However, an acquisition that violates the rules will be null and void under both regimes and the fines are quite significant in both cases.

Please see here for more information.

Poland has enacted two separate sets of rules related to different investors, with other companies/sectors protected, different competent authorities, separate procedural rules and fines.

Please see here for more information.

An information letter must be provided to the National Defence Council (via the Romanian Competition Council) if (i) the economic concentration (which involves a change of control) occurs in one of the relevant sectors, and (ii) the turnover thresholds required for a merger control filing (i.e. aggregate worldwide turnover of EUR 10m and Romanian turnover of EUR 4m for the involved parties) are not fulfilled.

Please see here for more information.

The Romanian Competition Council has published a draft law aimed to tighten the FDI screening (please see here for more information); public consultation is still ongoing at this date.

New investment screening legislation will enter into force on 1 March 2021, under which the acquisition of a shareholding in certain designated entities or of the business of these entities will need to be reported and may be subject to approval of the Slovak Government.

This obligation will apply regardless of whether the acquirer is a Slovak or foreign entity and will also apply to indirect transactions, i.e. a change in the persons having a direct or indirect participation in the operator of critical infrastructure exceeding a 10 % shareholding or voting rights is eligible to be screened.

Please see here for more information.

A (mandatory) filing requirement is triggered if a foreign investor intends to carry out or has carried out a foreign direct investment (i.e. merger or acquisition of an undertaking, investment in tangible and intangible assets, acquisition of the right to dispose of land and real estate essential to critical infrastructure / located near such infrastructure), which aims to establish or to maintain lasting and direct links between the foreign investor and an undertaking active in a sector affecting the security and public order of Slovenia and is seated in Slovenia, and the investment concerns at least 10 % of the capital or the voting rights.

Please see here for more information.

FDI booklet

booklet

FDI booklet

This booklet provides an up-to-date overview of the currently existing FDI regimes in CEE. Following the trend to tighten / set up FDI screening mechanisms, it will also keep pace with ongoing developments in jurisdictions where new rules are in the pipeline and therefore be continuously updated.

read more

Schoenherr publications on FDI

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Legal area and industry all
newsletter

21 February 2021

slovakia

M.Lučivjanský

New investment screening mechanism in Slovakia

On 1 February 2021, the Slovak Ministry of Economy submitted an investment screening proposal to the government. This proposal was approved by the National Council (with amendments) on 5 February 2021 and is scheduled to enter in force on 1 March 2021.

more
newsletter

04 February 2021

czech republic

C.Bock

New FDI rules come into force in the Czech Republic on 1 May 2021

more
newsletter

07 January 2021

romania

V.Weiss G.Bădescu C.Manea

Romania: FDI rules soon to be tightened

At the end of December 2020, the Romanian Competition Council (the "RCC") published an updated iteration of the draft Emergency Government Ordinance implementing the FDI Regulation (the "FDI Draft Law").

more
newsletter

04 November 2020

croatia

A.Marjančić* S.Petronijević

Has Croatia implemented FDI screening mechanism?

On 2 October 2020 the Regulation on the Implementation of the EU Foreign Direct Investment (FDI) Screening Regulation (2019/452) (OJ L 79I, 21 March 2019) (the Implementing Regulation) entered into force.

more
newsletter

12 October 2020

austria

V.Weiss C.Fladerer

EU FDI Screening Regulation enters into force

As of 11 October 2020 the EU FDI Screening Regulation is in force, ending the long wait for a Union framework to screen foreign direct investments.

more
newsletter

New FDI rules come into force in Poland

New legislation that affects investments in Polish entities by investors from outside the EEA and OECD will enter into force on 24 July 2020.

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newsletter

Austrian Parliament adopts new FDI screening act

On 15 July 2020 the Austrian Parliament adopted a new FDI screening act (Investitionskontrollgesetz, "ICA"), following the trend to tighten the regulatory framework for foreign investment screening (read more here: Austrian government proposes new FDI screening act).

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newsletter

03 June 2020

austria

V.Weiss C.Fladerer

Austrian government proposes new FDI screening act

On 27th May 2020 the Austrian government submitted a proposal for a new foreign investment screening act (Investitionskontrollgesetz) to the Parliament (the "Proposal").

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newsletter

CEE ramps up screening of foreign direct investments (FDI)

FDI screening was for a long time a blank spot on the regulatory landscape for most countries in Central Eastern Europe (CEE). Unlike Western European Member States, so far relatively few countries in Central Eastern Europe (Austria, Poland, Hungary, Romania) had instruments that allowed vetting foreign investments; albeit often with little practical relevance.

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newsletter

Slovenia introduces foreign investments screening rules

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newsletter

14 May 2020

austria

S.Hödl S.Schulz

Transactions under political scrutiny – A new FDI regime in Austria

Following the adoption of the new EU framework for screening of foreign direct investments (see Schoenherr Newsletter 13.03.2019), the Austrian government recently published a draft bill to amend the current rules on foreign direct investments (FDI) into Austria.

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roadmap

FDI in Europe – what to expect?

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If you have any questions regarding FDI, feel free to contact us:

Austria

Volker
Weiss

Partner

austria vienna

Sascha
Schulz

Counsel

austria vienna

Constantin
Fladerer

Associate

austria vienna

Croatia

Ana
Marjančić*

Attorney at Law in coop. with Schoenherr

croatia

Czech Republic

Claudia
Bock

Attorney at Law

czech republic

Ondřej
Havlíček

Attorney at Law

czech republic

Hungary

Kinga
Hetényi

Office Managing Partner

hungary

Adrian
Menczelesz

Associate

hungary

Poland

Paweł
Kułak

Attorney at Law

poland

Romania

Georgiana
Bădescu

Partner

romania

Cristiana
Manea

Attorney at Law

romania

Slovakia

Michal
Lučivjanský

Counsel

slovakia

Slovenia

Eva
Škufca

Local Partner in cooperation with Schoenherr

slovenia