Germany Foreign Direct Investment Rules Amendment

Germany’s foreign direct investment (FDI) rules have been amended between 2020 and 2021 to extend the government’s screening rights. 

In particular the amendment covers investments in high-tech sectors such as artificial intelligence, autonomous driving, semiconductors, optoelectronics or quantum technology where a reporting requirement is required when foreign ownership  represents at least 20% of the capital. 

In general, the German FDI Regime applies when a foreign investor acquires:

• a German company via a share or asset deal;
• a direct or indirect interest of more than 10 per cent of the voting rights of a German company operating in a critical infrastructure or in other specifically defined sectors such as IT and telecommunications services and cloud computing services relating to critical infrastructures;
• a direct or indirect interest of more than 20 per cent of the voting rights of a German company operating in one of the emerging technologies: semiconductors, AI, 3D printing, quantum technology, automated or autonomous driving, robotics, cybersecurity; or
• a direct or indirect interest of more than 25 per cent of the voting rights of any other German company.

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