Country Note Finland 2025

Finland has a continuous tradition in the field of foreign investment screening that goes back to the 1940’s. The current FDI Screening regime is based on the 2012 Act of the Screening of Foreign Corporate Acquisitions (2012/172). As can be derived from the name of the Act, the screening targets only foreign corporate acquisitions. Greenfield investments are not in the scope.

The objective of the screening is to ensure that certain key national interests are not endangered due to a foreign investment. The scope of the mechanism is relatively wide, generally without strict binding sector specific listings. Acquisitions targeting defence industry companies or companies that are critical in relation to statutory duties of Finnish Security Authorities are always subject to mandatory ex-ante screening. In addition, acquisitions where the target company is critical in terms of securing other functions vital to society are subject to voluntary notification. The definition of foreign investor varies in accordance with the target company’s security relevance. Defence industry acquisitions are subject to screening regardless of the investor’s home country. Other foreign corporate acquisitions are subject to screening only when the investor is domiciled outside the EEA/EFTA. There is no monetary threshold for transactions subject to screening. The screening mechanism co-exists with certain other regulations. Most notably the screening of foreign real estate acquisitions that targets non-EEA buyers.

This Country Note briefly describes the historical process that has led to the current FDI screening mechanism in Finland. Second, it gives a brief introduction to the legislation in force, focusing on its most important features. Finally, this country note takes a closer look on the forthcoming reforms.