ANNOUNCED AS TEMPORARYNo
FDI: Entry and ownership rule
On 24 July 2020, Austrian authorities adopted the new Investment Control Act ("Bundesgesetz über die Kontrolle von ausländischen Direktinvestitionen" or short "Investitionskontrollgesetz"). This Act changed the scope of the already existing FDI screening regime and introduced an exemption for small and micro-enterprises, including start-ups.
Acquisitions of target companies in the specified sectors are now exempted from the authorisation obligation, even if the company's activities fall in a sector that is of particular relevance for national security or public order as specified in the Investment Control Act. The Act defines entities with less than 10 employees and their annual turnover or balance sheet not exceeding EUR 2 million (approx. USD 2.3 million) as small and micro-enterprises.
Specified sectors subject to the FDI screening regime are the following: critical infrastructure (such as energy, ICT, transportation, health, food, data processing and storing, finance, social and distribution systems, chemicals, defense, research institutions, real estate), critical technologies and dual-use goods as well as the security of critical resources supply, media freedom and plurality, and sensitive information, including personal data. This list is non-exhaustive. The exemption also applies to the sensitive sector specified in the Act (water and energy supply, 5G-networks, pharmaceuticals and medical products as well as protective equipment).
The Act entered into force on 25 July 2020.
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