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Key insights into the Swedish FDI Act and the Swedish Protective Security Act

Martin Johansson, Hampus Peterson and Alva Chambert have written the Swedish chapter of the International Comparative Legal Guide - Foreign Direct Investment Regimes 2025, particularly relevant for those who need to get an idea of whether a certain transaction risks being affected by the applicable national legislation and what this means.

In recent years, policy focus has grown around investments that may affect the country's national security, public order or public security. Linked to this are two main statutes governing foreign investment in Sweden, with security aspects in mind: the Swedish Screening of Foreign Direct Investments Act (FDI Act) and the Swedish Protective Security Act. These mean that investments in many activities worthy of protection and security-sensitive sectors may need to undergo careful screening, and companies need to carefully consider how transactions may be affected by the applicable screening regimes. This is covered by Vinge's experts in the Swedish chapter of the ICLG FDI Guide.

The Swedish FDI Act, which entered into force on 1 December 2023, introduces a system to screen and possibly prohibit investments if necessary to prevent harmful effects to Sweden's security or public order and safety in Sweden. The law aims to protect Sweden's national security, public order and safety, and is part of a broader European framework for screening foreign investments. The Swedish screening system covers both foreign and domestic investments, but only investments from outside the EU can be prohibited or authorised with specific conditions.

International Comparative Legal Guide (ICLG)

ICLG is a leading global legal database covering the state of the law through reference materials, analyses, news and legal guides in 193 jurisdictions and 58 practice areas. It is used by private and public sector professionals worldwide and currently receives more than 5 million searches per year.