The objectives of assessing foreign investments are to avoid threats to the security and public order of Estonia and the Member States of the European Union and to ensure the protection of interests that are important for the functioning of the state. For example, the continuity of vital services, the availability of goods, security of supply and the resilience of critical infrastructure. The Consumer Protection and Technical Regulatory Authority (TTJA) carries out an authorisation procedure under the Foreign Investment Reliability Assessment Act, during which hazards are identified and eliminated.
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Foreign investment authorisation
A foreign investment authorisation is mandatory if a natural person or an undertaking from outside the European Union wishes to participate in an economic field from the point of view of Estonian security or public order and wants to make an investment in a company operating in specified sectors.
According to the Foreign Investment Reliability Assessment Act, a foreign investment is a transaction or linked transactions through which a foreign investor:
acquires direct or indirect qualifying holding in the target undertaking;
achieves direct or indirect control over the target undertaking; or
acquires a part of the target undertaking (including assets and subsidiary).
Who is a foreign investor?
A foreign investor is a natural person with or without citizenship of a third country (i.e. a country that is not a member of the European Union), or a company established under the law of a third country or a company controlled by the above-mentioned person, regardless of its place of establishment.
What is a qualifying holding?
A qualifying holding is a holding of at least 10 percent in the company’s share or share capital, of all rights or votes in the company, or that allows significant influence over the company’s management bodies (for more details, see § 9 of the Securities Market Act).
What is part of the target company?
A part of a target undertaking means the assets of the target undertaking or an organisationally independent part of the target undertaking, including an enterprise or installation, serving as a basis for the relevant economic activities and necessary for operation for the target undertaking specified in the Foreign Investment Reliability Assessment Act.
Who is the target company?
The target company is an undertaking operating in an economic field and specified sector that is important from the point of view of Estonian security or public order.
The target companies are:
- a provider of a vital service and goods and who owns necessary infrastructure for it;
- a company in which the state has a qualifying holding;
- a manufacturer or supplier of military or dual-use goods;
- a provider of national television or raadio service and provider of on-demand audiovisual media service, as well as a publisher of news, newspapers and magazines in print media and on the Internet;
- an undertaking holding a geological exploration or extraction permit for the exploration or extraction of oil shale or a raw material found in Estonia;
- an undertaking linked to the State's operating stock;
- an undertaking that owns the infrastructure of masts with a height of at least 200 metres;
- a certified aerodrome or heliport operator;
- an operator of an Estonian maritime port belonging to the trans-European transport network.
A more detailed list of the target company can be found in § 4 of the Foreign Investment Reliability Assessment Act.
Foreign investment authorisation procedure
To obtain an authorisation for a foreign investment, a foreign investor or its representative must submit to the Consumer Protection and Technical Regulatory Authority:
- an electronic application in Estonian;
- an electronic notification in English;
- translations into Estonian or English certified by a sworn translator of additional documents;
- certified translations of additional documents into Estonian if the additional documents are not in Estonian or English.
The application shall include a description of the foreign investment and details of the foreign investor, the target undertaking, a part of the target undertaking, their ownership structure, beneficial owner and economic activities as well as the value of the foreign investment, the source of financing and the time schedule.
To apply for a permit for a foreign investment:
- fill in the application and notification;
- add supporting documents;
- submit a digitally signed application via e-mail to [email protected].
Application and notification forms:
Time limits for processing
The Consumer Protection and Technical Regulatory Authority shall forward the application and the documents attached thereto without any shortcomings to the Foreign Investment Committee for approving the grant.
On the basis of the approval of the Foreign Investment Committee, the Consumer Protection and Technical Regulatory Authority within 30 calendar days of the submission of the
application without any shortcomings:
- grants a foreign investment authorisation;
- refuses to grant a foreign investment authorisation; or
- notifies the applicant that the foreign investment is not subject to an authorisation obligation on the basis of Foreign Investment Reliability Assessment Act.
In order to assess the impact of a foreign investment, the Consumer Protection and Technical Regulatory Authority may extend the time limit of 30 days once by up to 90 calendar days.
If negotiations must be held with a foreign investor over the measures to prevent a threat to the security or public order of Estonia or another Member State of the European Union, the Consumer Protection and Technical Regulatory Authority may extend the time limit once by up to 60 calendar days.
Refusal to grant a foreign investment authorisation
The Consumer Protection and Technical Regulatory Authority refuses to grant a foreign investment authorisation if:
- the foreign investment may endanger the security or public order of Estonia or another Member State of the uropean Union.
The Consumer Protection and Technical Regulatory Authority may refuse to grant a foreign investment authorisation if:
- there is good reason to doubt the authenticity of the data and documents submitted or the accuracy of the content thereof;
- the applicant has not submitted additional data requested by the Consumer Protection and Technical Regulatory Authority, which may have an impact on the grant of a foreign investment authorisation or refusal to grant the same;
- the foreign investment may have an impact on projects or programmes of interest to the European Union within the meaning of Article 8 of Regulation (EU) 2019/452 of the European Parliament and of the Council.
The reasons for the refusal to grant a foreign investment authorisation, as well as the information and evidence collected in the procedure are not disclosed, including to the applicant, to the extent in which it may endanger the security or the protection of public order of Estonia or another Member State of the European Union or in which it is subject to the restriction on access provided for in law, for example, in the case of a business secret of an undertaking.
Grant of authorisation with secondary condition
A foreign investment authorisation may contain a secondary condition which obliges a foreign investor or a target undertaking to take measures to avoid endangering the security or public order of Estonia or another Member State of the European Union, including to transfer holding of a certain size in the target undertaking or continue effective contracts for the supply of products or provision of services.
Revocation of foreign investment authorisation
The Consumer Protection and Technical Regulatory Authority may revoke a foreign investment authorisation if:
- the foreign investor or the target undertaking does not fulfill the secondary condition imposed by the grant of authorisation;
- the foreign investor has submitted incorrect or misleading data or documents which were of decisive importance upon making the decision.
Upon revoking a foreign investment authorisation, the foreign investor, the target undertaking and another party to the foreign investment is required to immediately perform necessary acts to restore the situation prior to the foreign investment to the greatest extent possible.
Supervision and accountability
State supervision of compliance with the requirements provided for in the Foreign Investment Reliability Assessment Act is carried out by the the Consumer Protection and Technical Regulatory Authority.
If
- a foreign investment subject to an authorisation obligation has been made without a foreign investment authorisation, or
- a foreign investor, a target undertaking or another party to the foreign investment does not fulfill the secondary condition imposed by the grant of authorisation,
the Consumer Protection and Technical Regulatory Authority may issue a precept to the foreign investor, the target undertaking and another party to the foreign investment to them:
- obliging them to comply with the secondary condition,
- transfer the holding or a part of the target undertaking,
- reverse the transaction or
- perform other acts to restore the situation prior to the foreign investment.
In the event of a failure to observe a precept issued on the basis of the Foreign Investment Reliability Assessment Act, the Consumer Protection and Technical Regulatory Authority may impose non-compliance levy pursuant to the procedure provided for in the Substitutional Performance and Non-Compliance Levies Act. The upper limit of non-compliance levy is 100,000 euros.
The assessment of foreign investment in Estonia is regulated by:
The Foreign Investment Reliability Assessment Act
The regulation "Procedure for submitting an application for a foreign investment” (in Estonian);
Rules of Procedure of the Foreign Investment Commission" (in Estonian)
Contact:
Madis Ostra, Foreign Investment Screening Expert
Tel +372 620 1756| E-mail [email protected]
Foreign Investment Committee
The Foreign Investment Committee operates at the Consumer Protection and Technical Regulatory Authority and includes representatives of the Ministry of Defence, Ministry of Economic Affairs and Communications, Ministry of Finance, Ministry of the Interior, Ministry of Foreign Affairs, Estonian Internal Security Service, Estonian Police and Border Guard Board, Financial Intelligence Unit, Estonian Foreign Intelligence Service and Government Office
The rules of procedure of the Committee are established by a regulation of the Government of the Republic.
Functions of the Committee:
- to assess the impact of a foreign investment on the security and public order of Estonia or another Member State of the European Union and approves the grant of a foreign investment authorisation or refuses to approve the same;
- to make a proposal for imposing a secondary condition of a foreign investment authorisation and gives an assessment of the secondary condition;
- to decide on the provision of comments on the basis of Regulation (EU) 2019/452 of the European Parliament and of the Council and prepares the comments.
Upon performing its functions, the Committee has the right to:
- obtain information from a foreign investor, another person and authority as well as databases about the circumstances necessary for assessing the reliability of a foreign investment;
- cooperate with competent authorities of other countries, the European Commission and international organisations, including obtain information from competent authorities of other countries, the European Commission and supervisory authorities.
Last updated: 11.06.2026
