Finland proposes Investment Permit Act to expand foreign investment screening
On June 3, 2026, Finland's Ministry of Economic Affairs and Employment initiated a consultation on a draft Government Proposal for a new Act on the Screening of Foreign Investments and Permit Procedures, informally referred to as the 'Investment Permit Act.' This proposed legislation aims to broaden the scope of Finland's foreign direct investment (FDI) screening regime, transitioning from a corporate-acquisition review to a more comprehensive investment control framework.
Key Changes in the Proposed Investment Permit Act
- Mandatory Advance Permits: The current voluntary confirmation route would be largely replaced by a mandatory pre-closing permit requirement for in-scope investments.
- Expanded Scope: The reform seeks to address risks to national security, security of supply, and foreign influence activities more efficiently by expanding the range of investments subject to screening.
- Alignment with EU Regulations: The proposal aligns with the EU's forthcoming Regulation on the Screening of Foreign Direct Investments, aiming for a harmonized approach across member states.
Implications for Foreign Investors
Foreign investors considering acquisitions or investments in Finland should be prepared for a more stringent and comprehensive screening process. The mandatory pre-closing permit requirement signifies a shift towards proactive control, potentially affecting transaction timelines and necessitating thorough compliance with the new regulations.
Next Steps
The consultation period for the draft proposal is open until July 16, 2026. Stakeholders are encouraged to provide feedback, which will be considered before the final Government Proposal is presented in autumn 2026. The new Act is intended to enter into force in spring 2027.
This legislative initiative reflects Finland's commitment to safeguarding national interests while maintaining an open and positive stance towards foreign investment.
