Greece Launches New Foreign Direct Investment Screening Regime
- aina246
- 1 hour ago
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Greece’s national screening regime for foreign direct investments (FDI) has come into force. The legislation establishes a structured review process for foreign investments that could affect national security or public order. Its primary goal is to protect critical sectors of the economy, including energy, defence, transport, infrastructure, and digital systems.
An FDI screening regime is a legal framework through which a government reviews and may approve or reject certain foreign investments.
The screening regime applies under the following circumstances:
Investments by non-EU (third-country) investors, natural persons, companies, or state-controlled entities, acquiring or increasing stakes in Greek companies operating in sectors deemed “sensitive” or “highly sensitive” under the law.
Investments by EU-based entities may also be caught if they are effectively controlled (directly or indirectly) by non-EU persons or governments. Even a non-EU person holding at least 10% of the EU investor’s capital or exercising significant influence may trigger screening.
The target must be a company incorporated under Greek law or a joint-venture with foreign participation.
The law distinguishes between sensitive and highly sensitive sectors:
Sensitive sectors include energy, transport, healthcare, information and communication technologies, and digital infrastructure. An acquisition of at least 25% of shares, voting rights, or equivalent participation triggers screening. Additional notifications are required if the stake increases to 30%, 40%, 50%, or 75%.
Highly sensitive sectors cover defence and national security (including military or dual-use technologies), cybersecurity, artificial intelligence, port or critical underwater infrastructure, and certain tourism infrastructure in border regions. For these, the screening threshold is lower. An acquisition of 10% or more triggers review; further increases to 20%, 25%, 30%, 40%, 50%, 60%, 70%, or 75% also require filing.
What investors must do:
Investors intending to acquire or increase stakes in companies must notify and obtain approval before closing the transaction. The regime is mandatory and suspensory, without approval, the deal cannot proceed.
The review is handled by the Interministerial Committee for Control of Foreign Direct Investments (DEEAXE) with support from the Directorate B1 of the Ministry of Foreign Affairs.
The initial screening (phase one) must be completed within 30 calendar days. If deeper review is deemed necessary, the Committee may launch a more in-depth assessment (phase two).
Failure to notify a qualifying transaction may result in administrative fines.
There are limited exemptions. For example, purely passive portfolio investments by natural persons are generally excluded.
Since Greece introduced its regime, the remaining two EU jurisdictions, Croatia and Cyprus, have also established FDI screening frameworks. Cyprus has adopted the rules, which are expected to enter into force in April 2026. From that date, all 27 EU member states will have FDI screening regimes in place.
Sources:
A new era for investment oversight in Greece: FDI regime goes live 26 November 2025