Country Note Austria 2025

Since the Austrian Foreign Investment Control Act (“InvKG”) entered into force on 25 July 2020, Austria has developed into a significant jurisdiction for foreign direct investment (FDI) within the EU. This prominence is reflected in the European Commission’s third Annual Report, which lists Austria among the six countries responsible for more than 90% of all FDI notifications. The Federal Minister for Economy, Energy, and Tourism has the authority to review foreign investments in Austrian undertakings active in sectors deemed critical for national security and/or public order. Under the InvKG, a mandatory filing requirement is triggered when a foreign investor – that is, an individual or entity from outside the EU, EEA, or Switzerland – intends to invest (directly or indirectly) in an Austrian undertaking. The filing requirement covers:

• the acquisition of shares reaching/exceeding 10 %, 25 % and 50 % (voting right shares);
• the acquisition of control; and
• the acquisition of essential/all assets of such an undertaking (asset deals),
• the undertaking is active in a sector listed in an Annex to the InvKG, and
• the undertaking is Austrian, i.e. has its seat or its central administration in Austria (local nexus).

The Annex to the InvKG provides a list for (i) especially sensitive sectors (exhaustive list) and (ii) other sensitive sectors (non-exhaustive list). The sensitive sectors are broadly interpreted by the authority. Thus, parties should consider involving a local counsel to determine the filing obligation.

No approval is required for investments in undertakings with i) fewer than 10 employees and ii) an annual turnover or balance sheet of less than EUR 2m (micro-enterprise exception).