Foreign Direct Investments (FDI)

Estonia’s Foreign Investment Reliability Assessment Act (FIRAA) (in Estonian: Välisinvesteeringute usaldusväärsuse hindamise seadus), effective since September 1, 2023, has introduced a mandatory and suspensory foreign direct investment (FDI) screening regime. This framework requires non-EU investors to obtain prior authorization for acquiring at least 10% of shares or votes, or gaining control over entities operating in sectors deemed critical to national security and public order. These sectors include energy, transport, communications, vital services, media, and companies with significant state participation. The Consumer Protection and Technical Regulatory Authority (TTJA), in collaboration with the Foreign Investment Committee, oversees the assessment process, which may extend up to 90 days, with potential additional periods for complex evaluations.  

Magnusson’s Estonian office offers comprehensive legal services to help investors navigate the complex requirements of the FIRAA and ensure successful transaction completion. Our expertise encompasses evaluating the applicability of the screening requirements, preparing and submitting detailed filings, and liaising with the TTJA and relevant authorities. We provide strategic counsel to ensure compliance and facilitate smooth transaction processes for foreign investors. Our team’s extensive experience in both Estonian and EU-wide FDI regulations, combined with our strong working relationships with relevant authorities, positions us to effectively manage cross-border investment activities and safeguard our clients’ interests in Estonia’s evolving regulatory landscape.