Belgium’s foreign direct investment (FDI) screening regime

Since July 1, 2023, Belgium has implemented a foreign direct investment (FDI) screening system.

The aim of the FDI screening is to detect and mitigate potential risks to national security, public order, and strategic interests, particularly in sensitive sectors like critical infrastructure, technology, and raw materials.

The FDI screening mechanism requires non-EU investors to notify certain investments projects - above certain thresholds, representing 10% or 25% depending on the activity of the target - envisaged in a Belgian company, operating in a highly sensitive sector or in a sector likely to affect security or public order, to the Belgian Inter-Federal Screening Committee (ISC) for prior approval.

Transactions are initially reviewed for potential security or strategic impacts in a first 30-day phase, followed, in certain cases only, by a deeper screening phase lasting 28 days, both of which may be extended.

Failure to comply with this mandatory notification requirement may result in fines ranging from 10% to 30% of the investment amount.

The FDI screening mechanism therefore impacts acquisition procedures in Belgium for non-European investors, which must be carefully considered, especially in terms of timelines.

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Belgium’s foreign direct investment (FDI) screening regime