On 22 October 2026, the Finnish Government submitted its proposal for a new Foreign Direct Investment Act to Parliament. The legislation is intended to come into force on 1 April 2027.

The proposed Act aims to clarify the current regulatory framework and better address risks to national security and security of supply, as well as risks arising from wide-ranging influence activities. The Act is meant to better respond to a changing security environment.

Authorities estimate that the new Act would roughly triple the annual number of applications in the short term.

Furthermore, the proposed Act would provide the supplementary national rules needed to apply the European Union’s Regulation (EU) 2026/1386 of the European Parliament and of the Council of 17 June 2026 on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 (“EU Screening Regulation”).

We have summarised eight key proposed changes relevant to investors below.

1. Prior authorisation

Under current legislation, screening covers the defence industry, companies supplying critical products or services to authorities and other entities critical to safeguarding vital functions of society. The precise scope of investments subject to screening has largely been defined through case-by-case assessments by the authorities. 

To clarify the scope of investments subject to screening, the proposed Act would set out eight categories. The proposed areas of screening would largely correspond to those under the current Act, with regard to the defence sector, dual-use goods, the security sector and functions vital to society.  

The areas subject to screening would include foreign investments in a company, business unit or other entity whose registered office is in Finland and whose activities, products or services involve any of the following: 

• production or supply of, or the intention to produce or supply, defence equipment or other products or services important to national defence or the national defence industry; 
• export or transfer, subject to authorisation, of dual-use items produced in Finland; 
• use, development or other handling of dual-use items subject to export authorisation as a central part of activities in Finland; 
• production or supply of critical products or services to Finnish authorities central to public safety;¹ 
• access to information or data that is confidential, security-classified or otherwise of importance and relevant to national security, the implementation of comprehensive security or the safeguarding of security of supply; 
• production or supply of ICT or information security products or services significant in terms of national security, the implementation of comprehensive security or security of supply; 
• activities, products or services relating to safeguarding security of supply, critical infrastructure or other functions or services vital to society;² 
• activities included among the mandatory screening targets set out in the EU Screening Regulation.³ 

The proposed categories would not exhaustively list every sector or activity covered by the Act. Assessments would continue to be made on a case-by-case basis, taking into account the prevailing security environment.

2. Broader coverage

Under current legislation, investors from EU and EFTA countries are generally not regarded as foreign investors, with the exception of acquisitions involving defence industry companies. The proposed Act would remove this distinction and extend mandatory screening to all foreign investors making investments within the scope of the Act. 

A company, business unit or other entity whose registered office is located outside Finland would be regarded as a foreign investor. This would cover legal persons and other entities not established in Finland, regardless of their ownership structure. 

Natural persons without Finnish citizenship, including stateless persons and those whose nationality cannot be reliably verified, would be regarded as foreign investors. The definition would be based on nationality rather than place of residence. 

A company, business unit or other entity whose registered office is located in Finland would also be regarded as a foreign investor if a foreign natural person or entity holds, directly or indirectly, at least one-tenth of the total voting rights or otherwise exercises corresponding de facto influence. The same voting-rights and de facto influence criteria would also apply to other investment structures. 

3. Greenfield investments

The proposed Act would bring greenfield investments within the screening regime for the first time. The provision would supplement the Act’s scope by covering foreign investments in a company, business unit or other entity to be established, or an existing entity that has not yet commenced operations and intends to engage in specified activities. It could also cover the establishment of a new business unit within an existing company.  

Foreign investments establishing new businesses or operations in specified sectors would become subject to prior authorisation. Greenfield screening would cover activities or projects such as the following: 

• production or supply of defence equipment or other products or services important to military national defence or the Finnish defence industry;
• manufacturing or developing dual-use products subject to export authorisation requirements;
• constructing or maintaining airport infrastructure, port infrastructure or certain logistics terminals;
• providing data centre services or establishing data centres that meet the Act’s security-related screening criteria, have a potential electrical capacity of at least 100 megawatts, or are intended to involve certain artificial intelligence or quantum technologies specified in the EU Screening Regulation;⁴
• carrying out certain energy projects, including:
• • wind and solar electricity generation projects with an electrical capacity of at least 300 megawatts;
  • other electricity generation or electricity storage projects with an electrical capacity of at least 100 megawatts;
  • hydrogen production with a production capacity of at least two tonnes per hour;
  • district heating or cooling production in an individual plant or system exceeding 100 megawatts;
  • smaller projects of the types listed above, where projects carried out by the same foreign investor form a functional whole and meet the applicable capacity threshold in aggregate;
• extracting, processing, recycling, recovering or storing certain strategic raw materials.

4. Additional ownership thresholds

The proposed Act would also expand screening of increases in ownership. Two additional thresholds of 66.6 and 90 per cent would allow authorities to reassess investments if a foreign investor increases its stake in a company. 

Investments subject to screening would require authorisation where, as a result of the acquisition, the foreign investor’s share of voting rights exceeds 10, 33.3, 50, 66.6 or 90 per cent. Authorisation would also apply where the investor acquires corresponding de facto influence over the entity subject to screening. 

For greenfield investments, prior authorisation would be required when acquiring an ownership interest of at least 10 per cent or corresponding de facto influence. Later increases in ownership would be subject to the thresholds described above. 

5. Two-step authorisation process

A foreign investor would be required to apply in advance for authorisation for a foreign investment falling within the scope of the Act. The investment could not be completed before authorisation has been granted. Applications would be submitted to the National Emergency Supply Agency (NESA). 

NESA would act as the authorising authority in the first stage of the procedure and as the national contact point under the EU Screening Regulation. It would grant authorisation at the first stage if its preliminary review showed no need for an in-depth investigation. Otherwise, the application would proceed to the second stage.  

The Ministry of Economic Affairs and Employment (MEAE) would act as the authorising authority in the second stage. It could also take over an application during the first stage if the matter was deemed to be of particular significance to national security, military defence, security of supply or other functions vital to society, or if the matter required an assessment of whether authorisation should be subject to conditions. 

The first-stage review would have to be completed within 45 calendar days of receipt of all information necessary to process the application. The proposed Act would not set a specific deadline for completing the second-stage review. 

6. Administrative fines and enforcement

If a foreign investor made an investment without the required authorisation, the authorising authority would issue a notice requiring the investor to submit an application for authorisation or restore compliance with the law within a specified time limit. 

If a foreign investor failed to comply with the notice within the specified time limit, MEAE would issue a decision declaring the investment null and void. 

An investor who, either intentionally or through negligence, carried out a foreign investment subject to screening without the required authorisation could be subject to an administrative fine. For entities, the maximum fine would be EUR 10 million or 10 per cent of worldwide annual turnover, whichever is higher. For individuals, the maximum would be EUR 500,000. 

7. Access to confidential information

 A foreign investor and the entity subject to screening would be required to provide the authorising authorities with all information necessary to process the authorisation application, regardless of confidentiality provisions or other restrictions on disclosure.  

Companies, other entities and individuals would also be required, upon request, to provide the authorising authority with information necessary to determine whether a foreign investment falls within the scope of the Act, subject to the same disclosure obligation. 

8. Transitional provisions

The proposed Act is intended to come into force on 1 April 2027 and repeal the current Act on the Screening of Foreign Corporate Acquisitions (172/2012). 

The current rules would continue to apply to investments made and applications or notifications filed before the new Act takes effect. Investors should take the proposed reform and its transitional provisions into account when planning transactions and projects in Finland and setting their timelines.

Preparing for changes

In light of the proposed reform, it is worth considering FDI screening early when planning an investment in Finland. Assessing whether authorisation is needed and allowing time for the review can help avoid surprises later in the process. If you are planning a transaction or a new project, our team is here to help you and is happy to discuss what the reform could mean for your investment plans. 

^{1 For example, software programs, cybersecurity applications, digital certificate services, cloud services, data centre services and other products and services relating to their maintenance.
2 For example, critical shipyards, transport and logistics infrastructure, data centres, energy facilities and infrastructure, food, chemical and metal production, pharmaceutical supply chains, hospitals and utilities infrastructure. 
3 These include, for example, certain artificial intelligence technologies, semiconductors, quantum technologies and key financial and payment systems. 
4 AI technologies cover certain general-purpose AI models and related systems suitable for space or defence applications, or involving systemic risk. Quantum technologies cover quantum computing, communication and sensing.}