European Union: International Law

Cyprus has introduced a Foreign Direct Investment screening framework that adds a new layer of regulatory oversight to cross-border transactions in strategic sectors. The regime extends beyond immediate investing entities to examine ultimate ownership structures, meaning EU-incorporated subsidiaries may still trigger notification requirements if third-country control exists higher in the corporate chain.

The European Union has adopted a new regulation on foreign direct investment screening that will take effect in 2028, establishing mandatory minimum standards across all Member States. This marks a significant shift from the previous cooperation-based framework toward harmonized requirements for reviewing foreign investments in sensitive sectors. While the regulation introduces common procedures and expanded scope, national variations in implementation are expected to persist, creating new considerations fo

The European Union has introduced its most comprehensive overhaul of foreign direct investment screening since 2020, establishing harmonised minimum standards across all Member States for reviewing investments in strategically sensitive sectors. This revised framework significantly expands the scope of transactions subject to review, introduces stricter procedural requirements, and enhances coordination mechanisms between national authorities and the European Commission.