From corporate acquisition screening to active investment control in Finland
Finland’s FDI screening regime is moving from light-touch corporate acquisition screening towards active investment control
Finland has long presented itself as open to foreign investment. That is not changing. What is changing is how early, how broadly, and how seriously foreign investments may be reviewed before they can go ahead. Under the current regime, however, Finland does not yet operate a general pre-closing FDI approval system: mandatory advance filing currently applies to acquisitions involving defence or security companies, while advance notification for certain other in-scope acquisitions is voluntary.
Under the latest draft government proposal, published on 3 June 2026, Finland would replace its current foreign corporate acquisitions regime with a new investment permit framework: the Act on the Screening of Foreign Investments and Permit Procedures, informally known as the “Investment Permit Act”. The new regime is expected to enter into force in spring 2027. The biggest practical shift is from a system with partly voluntary filings to a mandatory pre-closing approval requirement for investments that fall within scope. In other words, investors would have to obtain a permit before final implementation of an in-scope investment, and the investment could into be put into effect before the permit is granted.
The reform comes against a background of rising filing activity, but still relatively limited intervention. In 2024, Finland received 31 new FDI applications or notifications, while 159 foreign corporate acquisitions were carried out in the country. All applications passed the confirmation process. Average processing time was 52 days overall, or 58 days for cases falling within scope. In 2025, filings increased to 41, while foreign acquisitions rose to 234. Again, all applications passed the process, but average review time increased to 58 days overall and 71 days for in-scope cases. The main filing sectors remained industry and IT, with industry accounting for 10 filings in both 2024 and 2025, and IT accounting for 8 in 2024 and 7 in 2025.
The main problem is therefore not that Finland has suddenly become hostile to foreign capital. The issue is uncertainty: more sectors will be sensitive, more investors may be caught, and more transactions will need to be analysed before signing or closing. The proposal is aimed at risks linked to national security, security of supply, critical infrastructure, defence, cybersecurity, sensitive data, wide-ranging influence activities and technologies with dual-use or strategic relevance. The proposal would also stop distinguishing in-scope cases by investor origin so investments could be caught whether the investor is from the EU/EFTA or from outside it.
The scope would also expand beyond traditional acquisitions. Certain greenfield investments — new business establishments in sensitive areas — would become subject to screening in a targeted way. This matters especially for infrastructure, energy, ports, airports, data centres, strategic raw materials, technology and other assets that may be commercially ordinary but strategically sensitive.
The procedure would also become more structured. The National Emergency Supply Agency would handle the first-stage review, while more complex cases would move to the Ministry of Economic Affairs and Employment. The first stage would be subject to a 45-day review period once the authorities have the information they need, after which the Ministry could take over a first-stage case if its significance requires, and any refusal would still be decided by the Government plenary session on the Ministry’s proposal. This may improve predictability for straightforward cases, but it also means FDI analysis will move earlier into deal planning.
For investments and M&A, the likely impact is clear. Finland should remain investable, and outright prohibitions are likely to remain rare. However, more deals will need mandatory filings, longer timetables, more conditions precedent, and more careful buyer-risk analysis. Sellers may need to compare bidders not only by price, but also by regulatory certainty. For sensitive Finnish targets, FDI clearance may become as important as merger control, financing certainty and tax structuring.
The practical message for investors is simple: Finland remains open, but not passive. FDI approval is becoming a front-end deal issue, not a late-stage legal formality.
Key sources: the Ministry’s 2024 and 2025 annual reports show 31 filings in 2024, 41 in 2025, all passing confirmation, and processing times increasing from 52/58 days in 2024 to 58/71 days in 2025. The draft government proposal published on 3 June 2026 states that the reform targets national security, security of supply and influence risks, expands screening to some greenfield investments, introduces a two-stage permit procedure, and is intended to enter into force in spring 2027.
Jan Lindberg, Partner