Foreign Direct Investment Law
Legal Support for Structuring, Screening and Protecting Investments in Greece
Foreign Direct Investment (FDI) law regulates the entry, protection, and treatment of capital invested by foreign investors through foreign direct investment structures. The applicable regulatory framework combines international investment agreements, European Union law, and national legislation, creating an environment that promotes entrepreneurship and the attraction of capital.
The legal framework includes fundamental safeguards such as protection against expropriation, free transfer of capital and profits, and the principle of Fair and Equitable Treatment (FET). At the same time, it provides investment incentives such as tax exemptions, grants, and fast-track licensing procedures.
Today, foreign direct investments are not limited to simple financial participation. Instead, they presuppose a lasting relationship with the host enterprise, often through control or significant influence of the investor over the company’s management and strategic direction.
For any foreign investor considering or implementing investments in Greece, proper legal guidance is essential from the initial planning stage through to the completion and operation of the investment. At Nexus Law Firm, we provide specialized legal guidance to investors and businesses, covering the key aspects of FDI law presented in the following service categories.
Investment Permits & Golden Visa for Investors
Legal support for selecting the appropriate corporate structure and establishing investors in Greece through investor residence permit procedures (Golden Visa), intra-corporate transfers (ICT), and related immigration and investment mechanisms.
International Commercial & Investment Agreements
Drafting and negotiation of agreements for cross-border transactions and investment partnerships, including acquisition agreements, shareholders’ agreements (SHA), joint ventures, distribution, franchise, licensing, and cross-border contractual structuring.
Due Diligence & Investment Legal Review
Comprehensive legal due diligence covering companies, licenses, tax exposure, regulatory risks, and compliance auditing prior to the execution of investment transactions.
Mergers, Acquisitions & Transactions (M&A) with Foreign Investors
Legal guidance on M&A structuring, cross-border mergers, share transfers, and negotiations with international funds and investment structures.
Regulatory Compliance & Sector Licensing
Legal support in regulatory procedures including energy licenses, environmental approvals, land-use compliance, and sector-specific regulatory requirements in industries such as fintech, telecommunications, logistics, and tourism.
Dispute Resolution & Arbitration with International Investors
Legal representation in international commercial disputes and investment arbitration proceedings, including investor-state disputes and enforcement of arbitral awards.
What Are Foreign Direct Investments and What Is Their Regulatory Framework in the EU and Greece
Foreign direct investments constitute a form of international investment activity in which a foreign investor allocates capital to an enterprise in another country with the aim of creating or maintaining stable and long-term economic relations. Their defining characteristic is that they do not merely involve passive financial participation but allow meaningful involvement in the management or control of the company conducting the economic activity.
For this reason, foreign direct investments are distinguished from portfolio investments, which typically have a passive nature and do not imply substantial influence over the company’s management.
At the European Union level, the core investment screening framework is established by Regulation (EU) 2019/452, which introduces a cooperation mechanism for evaluating investments that may affect national security or public order. At the national level, the relevant screening system was introduced through Law 5202/2025, which provides procedures for reviewing investments in sensitive sectors of the economy while excluding portfolio investments and certain intra-group restructurings.
In the modern investment environment, foreign direct investment law is closely connected with the structuring and organization of investments in Greece. The appropriate legal structure, regulatory compliance, and proper management of approval procedures are critical factors for the smooth implementation of investment projects, particularly in projects of strategic importance or investments that fall within broader development and fast-track investment programs.
Frequently Asked Questions
What is Foreign Direct Investment (FDI) Law?
Foreign Direct Investment (FDI) Law is the body of rules governing investments made by foreign investors in a country. It combines national, EU and international law rules for the protection and regulation of these investments.
What counts as Foreign Direct Investment in Greece?
Foreign Direct Investment (FDI) in Greece is an investment by a foreign investor in a Greek business that creates a substantial and lasting relationship and allows the investor to participate in the management or control of the business.
Which law governs Foreign Direct Investment screening in Greece in 2026?
The main national framework for Foreign Direct Investment (FDI) screening in Greece is Law 5202/2025, together with the EU framework. Its purpose is to screen certain investments on grounds of national security or public order.
How are foreign investors protected in Greece?
Which foreign investments require screening before completion?
Law 5202/2025 provides for the screening of certain foreign direct investments, especially when the investor comes from a non-EU (third) country and the investment concerns sensitive or highly sensitive sectors. The shareholding threshold is 25% for sensitive sectors and 10% for highly sensitive sectors, subject to the conditions of the law.
What shareholding percentage triggers FDI screening?
As a rule, Foreign Direct Investment (FDI) screening is triggered by a shareholding of at least 25% in a business operating in sensitive sectors, while for highly sensitive sectors the threshold is 10%, under Law 5202/2025.
How long does a Foreign Direct Investment screening take?
The initial review is completed within 30 days. If an in-depth investigation is needed, a further 30 days apply, which can be extended by another 30 days. The overall timeframe may be affected by requests for additional information, comments from other Member States or an opinion of the European Commission, as well as by the suspensions and extensions provided by law.
What is due diligence before a foreign investment?
Legal due diligence includes, among other things, a legal review of the target company, an assessment of potential legal and regulatory risks and a review of key contracts, rights and obligations, so that the investor can make an informed decision before completing the investment.
What changes with the new Regulation (EU) 2026/1386?
Regulation (EU) 2026/1386 strengthens and harmonises the EU foreign investment screening framework by requiring mandatory screening mechanisms in all Member States. The Regulation is already in force, while most of its provisions will fully apply from 17 January 2028.