What Every Foreigner Should Know About Investors Restrictions Europe

If you’re planning to invest in Europe as a non-EU resident, you need to understand foreign investors restrictions Europe before you buy stocks, ETFs, crypto or real estate. From mandatory filings when you acquire a strategic stake to country-specific rules on property and taxation, the landscape can feel daunting. This guide walks you through EU-level frameworks, national screening regimes, sector coverage, filing thresholds, account requirements and tax implications so you can invest with confidence.

Understand FDI screening
Foreign direct investment (FDI) screening is the process by which EU Member States review inbound investments for potential security or public order risks. Although the EU’s 2020 FDI Screening Regulation does not force every country to adopt a national regime, it encourages coordination through a cooperation mechanism. As of 2025, 25 of the 27 Member States have established or are about to introduce screening regimes, and these vary widely in scope and procedure [1].

EU-wide framework

• The FDI Screening Regulation (effective October 2020) sets out voluntary notification and coordination rules
• Member States notify other capitals and the Commission of transactions affecting “projects of Union interest”
• In 2023, EU countries notified 488 transactions under the cooperation mechanism, a 67-case increase over 2022; 56 percent required formal review and 85 percent of those were cleared without conditions [1]

National regimes

• Filing obligations kick in when you acquire a certain percentage of shares or invest above a monetary threshold
• Rules differ by country on what counts as a sensitive sector and what triggers review
• Some states, like France and Germany, have lower thresholds for energy and defense
• Others, such as Belgium and the Netherlands, focus only on critical infrastructure or strategic technologies

Check sector coverage
Not every investment is subject to screening. Most Member States apply reviews only to specific industries deemed critical to security or public order.

Mandatory sectors under new proposal
In January 2024, the Commission proposed a New FDI Screening Regulation that would require all Member States to screen deals in:

• Space and defense
• Artificial intelligence and quantum computing
• Critical medicines and medical devices
• Financial services and payment infrastructures
• Transport, energy and critical raw materials [2]

Member State variations

Compare filing thresholds
Thresholds determine when you must notify authorities. They typically refer to your equity stake or the value of your investment.

Equity thresholds

• Common levels: 10 percent, 15 percent, 25 percent
• Smaller stakes may count if they grant voting rights or board representation

Value thresholds

• Range from €2 million (Poland) to €100 million (Germany)
• Some countries combine share-based and deal-value triggers

Meet notification requirements
If your investment crosses a threshold or targets a screened sector, you must file a notice and wait for clearance before closing the transaction.

Timeline and process

1. Prepare a notification dossier with deal documents, investor background and sector analysis
2. Submit to the national screening authority
3. Authority has 30 working days to assess and can extend by 45 days for in-depth review
4. Receive clearance, clearance with conditions or prohibition

Coordination mechanism

• Member States may request opinions from other capitals via the EU cooperation mechanism
• The Commission can issue non-binding or, under future rules, binding opinions

Navigate property restrictions
Real estate investment rules vary significantly, especially for agricultural land, coastlines and strategic sites.

Land ownership

• In some countries (Hungary, Denmark) non-EU citizens need government approval to buy farmland
• Coastal or heritage properties may require special permits or carry purchase caps

Urban property

• Most EU cities treat foreigners like residents, but local taxes and registration apply
• You may need a fiscal number or foreign investor ID

Consider crypto regulations
Crypto assets fall under the EU’s Markets in Crypto-Assets Regulation (MiCA), but you also need to check national rules.

EU framework

• MiCA sets licensing and disclosure requirements for crypto service providers
• It does not directly restrict your ability to hold tokens, but unlicensed exchanges may be off limits

Country-specific stances

• Germany treats crypto as private money; gains under one year are taxable
• France requires crypto platforms to register and comply with AML/KYC rules
• Italy taxes crypto gains above €2,000 per year

Review tax implications
Your tax bill depends on the type of investment, residence status and double taxation treaties.

Withholding and income taxes

• Dividends and interest often face a withholding tax of 15 percent, unless reduced by treaty
• Some countries levy additional solidarity or social contribution levies

Capital gains

• Rates range from 0 percent (Portugal’s non-habitual residents) to 30 percent (Belgium)
• Crypto gains may be taxed separately from securities

Inheritance and property taxes

• Inheritance tax varies widely; check foreigner inheritance tax europe
• Property transfer taxes can be 3–10 percent of the purchase price

Open investment accounts
To buy stocks, ETFs or crypto you’ll need an account with a bank or broker that accepts non-EU residents.

Broker and bank requirements

• Proof of identity (passport) and proof of address
• Tax identification number from your home country
• In some cases, EU fiscal number or non-resident tax code

Finding a provider

• Look for brokers that offer low fees on international trades
• Check whether they support your preferred markets and asset types
• See expat investment accounts europe for a comparison

Plan investment steps
Navigating foreign investors restrictions Europe takes planning and due diligence. Use this simple checklist:

1. Map your target investments and jurisdictions
2. Identify applicable screening regimes and sector rules
3. Calculate whether you exceed equity or value thresholds
4. Prepare and file notifications on time
5. Open compliant accounts with KYC requirements
6. Factor in withholding, capital gains and property taxes
7. Consult local legal and tax advisors

If you stay organized, you’ll avoid costly delays and fines. For tailored guidance on portfolio construction, see expat investment strategies europe and europe expat financial planning.

Key takeaways

• Foreign investors restrictions Europe range from FDI screening to property and crypto rules
• Sector coverage, filing thresholds and processes differ by Member State
• Real estate, inheritance and capital gains taxes can add 10–30 percent to your costs
• Choose brokers and banks that welcome non-EU clients and handle compliance
• Plan ahead, file notifications correctly and seek professional advice to invest confidently

With the right preparation, Europe’s diverse markets offer opportunities in stocks, ETFs, crypto and real estate. Start by mapping your targets and screening requirements, then follow each step methodically to build a compliant, tax-efficient portfolio.

References

1. (White & Case)
2. (Arnold & Porter)