Establishes a permanent FDI screening regime

01 Jul 2023

On 9 June 2023, the National Assembly of the Republic of Slovenia passed the law that establishes a permanent FDI screening regime (Zakon o spremembah in dopolnitvah Zakona o spodbujanju investicij (ZSInv-C)). This new law replaces the temporary FDI regime that was implemented during the Covid pandemic and was originally set to expire at the end of June 2023.

The revised legislation brings about significant changes to the FDI screening regime. These changes include clarifications regarding the information and evidence required in the FDI notification, the procedural aspects including the introduction of a formalized preliminary review, the list of conditions that may be requested by the government authority for FDI implementation, and the introduction of sanctions.

Starting from July 1, 2023, evidence must be attached to the FDI notification to demonstrate the accuracy of the provided information, including the underlying transaction documentation.

Under the new FDI regime, only non-EU investors are considered foreign investors. This marks a departure from the previous regime, which classified all non-Slovenian entities as foreign investors. In addition, a foreign direct investment is not limited to the initial investment alone, but also includes any additional investment of at least 10 percent of the capital or voting rights in a Slovenian entity.

The new FDI regime officially came into effect on 1 July 2023.