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ARTICLE · 27 JANUARY 2021

Malta Enacts Legislation On Foreign Direct Investment

Pursuant to Act LX of 2020, Malta has enacted the National Foreign Direct Investment Screening Office Act, 2020 (the "Act"). This Act implements Regulation (EU)...

MaltaGovernment, Public Sector

Pursuant to Act LX of 2020, Malta has enacted the National Foreign Direct Investment Screening Office Act, 2020 (the "Act"). This Act implements Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 (the "Regulation") establishing a framework for the screening of foreign direct investments into the European Union.

How does this Act apply?

The Act, which has come into force as at 11 October 2020, applies to foreign direct investments, with the exclusion of portfolio investments, made or planned to be made in Malta and to all persons involved in a foreign direct investment, including foreign investors, being non-EU persons, aiming to establish or to maintain lasting and direct links in order to carry on an economic activity in Malta, including investments which enable effective participation in the management or control of a company carrying out an economic activity.

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