Recently, the Austrian Legislature approved amendments to the ICA aimed at tightening FDI regulation in the country. So, let's take a closer look at the new piece of legislation & see what it takes to open a business in the EU now.
Austria: FDI Regulation
Pursuant to the amended law, regulatory approval is required if foreign investors intend to invest in an Austria-registered company by:
- acquiring a ten, twenty five or fifty percent stake in a company;
- acquiring full control over a company;
- acquiring an Austrian company’s assets.
An acquired company must be operating in one of the sectors listed in the Appendix to the ICA. It must also be based in Austria & managed locally.
Those planning to start an investment activity in Austria should keep in mind that approval isn’t required if a company:
- has less than ten employees;
- has an annual turnover of less than two million euros.
Austria: FDI Restrictions
There’s a ten percent threshold applicable to FDI in some critically important sectors, such as:
- R&D in the pharmaceutical industry (the ten percent threshold is imposed for 12 months) .
- defense sector;
- energy & IT infrastructure;
- systems ensuring Austria’s data sovereignty.
Those seeking to conduct an M&A transaction in the Republic of Austria should keep in mind jurisdictional thresholds (twenty five & fifty percent ownership) in sectors like:
- IT & robotics;
- transport & telecommunications;
- energy & pharmaceutical;
Those looking to acquire a company in the Republic of Austria should keep in mind that indirect takeovers are also regulated by the amended law. What this means is that a more thorough screening process is now applicable to a wider range of FDI.
Considering buying a company in Austria? Need advice on FDI regulation in Austria? Why not contact IQ Decision UK?