Assessing the credibility of foreign investments

The purpose of the permit procedure is to ensure the prevention of a negative impact on the security and public order of Estonia and other European Union member states, as well as the protection of interests important to the functioning of the state (including the continuity of vital services, the availability and reliability of supply of goods, and the development of critical infrastructure). 

Foreign investments of persons from countries outside the European Union, which acquire a direct or indirect significant stake in the target enterprise, achieve direct or indirect control over the target enterprise, or acquire a part of the target enterprise (company, facility, or property) are subject to assessment. 

A foreign investor is considered to be:

• a natural person who has the citizenship of a third country, a natural person who has several citizenships, at least one of which is the citizenship of a third country, or a natural person without citizenship;
• an enterprise established under the law of a third country;
• an enterprise controlled by the aforementioned natural person or enterprise, regardless of its place of establishment.

The circle of target enterprises for which the impact of foreign investment on security and public order must be assessed is limited (including, for example, providers of vital services, state-owned companies, manufacturers and suppliers of military or dual-use goods, owners of national defence objects, certain media companies, and owners of transport infrastructures).  

In order to obtain a foreign investment permit, an application must be submitted to the Consumer Protection and Technical Regulatory Authority.

The Foreign Investment Reliability Assessment Act contributes to the implementation of the cooperation mechanism between the member states and the European Commission provided for in Regulation (EU) 2019/452.  Information about the European Union's foreign investment control framework and the relevant regulations of other member states is available on the European Commission's website.