New Swedish foreign investment legislation as of December 1, 2023

Sweden will introduce a foreign direct investment (FDI) screening mechanism on December 1, 2023. The legislation includes a mandatory notification obligation for investments in a wide range of sensitive activities.
The following is noteworthy:

• The notification obligation applies to investments closing on December 1, 2023, or later.
• The notification obligation applies to investors from third countries and EU member states (incl. Swedish investors).
• The investment may not be closed until the review has been completed.
• The screening authority will have 25 working days to complete the initial review (extendable to up to three or six months).
• The screening authority may prohibit or clear an investment with conditions.
• Failure to comply with the notification obligation or other provisions may result in significant fines.

We expect the coming months to be challenging for investors. The legislation will apply to many transactions with Swedish nexus and there are still many uncertainties in relation to which investments that will be notifiable. We expect that the relevant authorities will be providing continuous guidance and that it will be important to follow developments closely.

We at Bokwall Rislund are following all developments and stand ready to respond to any questions. This guide provides an overview on the type of investments that trigger a Swedish FDI-filing and other important factors to consider when an investment requires a filing.