Estonia FDI control
Produced in partnership with Sorainen
Estonia FDI control

The following Competition practice note produced in partnership with Sorainen provides comprehensive and up to date legal information covering:

  • Estonia FDI control
  • 1. What is the applicable legislation?
  • 2. Which government or other body (or bodies) reviews foreign investments?
  • 3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (eg foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (eg state-owned enterprises)?
  • 4. What are the triggers or thresholds for the regime to apply? What types of transactions are caught? Is there a minimum level of shareholding or a control test that applies?  Are there any other thresholds that need to be met (eg based on turnover or market shares)?
  • 5. Are there any exceptions that may apply?
  • 6. Is there any discretion to review transactions that do not meet any thresholds for review?
  • 7. What are the grounds for review, eg public or national security or other grounds?
  • 8. What level of discretion do the relevant authorities have to approve or reject transactions? Is there scope for any other body to intervene?
  • 9. Where a transaction is caught by the regime, is notification mandatory and must closing be suspended pending clearance?
  • More...

A conversation with Kaupo Lepasepp, partner and Nils-Gregory Aer, legal assistant in the Tallinn office of regional law firm SORAINEN, on the key issues on foreign direct investment (FDI) control in Estonia.

1. What is the applicable legislation?

Estonia does not currently have in force legislation specifically regulating foreign direct investments. However, certain limited types of investments may be subject to sector-specific regulations which makes them de facto applicable to foreign direct investments (ie acquisition of natural gas transmission system or agricultural and forest land), but these restrictions generally serve sector-specific purposes are only indirectly applicable to foreign direct investments.

2. Which government or other body (or bodies) reviews foreign investments?

There are no government or other bodies which specifically review foreign investments.

Sector specific and de facto foreign investments review may be applicable in limited cases and performed by a relevant government body or authority (i.e. the Ministry of Economic Affairs, the Tax and Customs Board, etc).

3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (eg foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (eg state-owned enterprise

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