The Luxembourg Parliament adopts a new Foreign Direct Investment Screening Regime with a suspensory mandatory notification requirement in relation to investments in a broad range of sectors

In Short The Background: Luxembourg has introduced a new foreign direct investment regime with a suspensory mandatory notification requirement in relation to investments in a broad range of sectors. The Result: Investors from outside the European Economic Area ("EEA") will be required to notify any investments that exceed the specified thresholds, either directly or indirectly, in a Luxembourg entity that carries out "critical activities" in Luxembourg. Looking Ahead: The Luxembourg FDI Regime will come into force on 1 September 2023. Investments in Luxembourg entities (or entities with Luxembourg subsidiaries) that could potentially close after this date (including transactions signed before this date) should factor in the possibility of a Luxembourg mandatory notification