A411: Loi du 14 juillet 2023 portant mise en place d’un mécanisme de filtrage national des investissements directs étrangers susceptibles de porter atteinte à la sécurité ou à l’ordre public aux fins de la mise en œuvre du règlement (UE) 2019/452 du Parlement européen et du Conseil du 19 mars 2019 établissant un cadre pour le filtrage des investissements directs étrangers dans l’Union, tel que modifié.

The Law of 14 July 2023 establishes a national mechanism for screening foreign direct investments (FDIs) that may pose a threat to national security or public order.
The law implements EU Regulation 2019/452, which sets out a framework for screening foreign direct investments in the EU. In scope are FDIs in Luxembourg that are made by any non-European resident investor only.
Portfolio investments representing the purchase of shares in a Luxembourg company with the purpose of making a financial investment and not giving the foreign investors the right to exercise direct or indirect control over the Luxembourg company are not affected.
The law requires foreign investors to notify the Minister of the Economy before making any direct foreign investments in Luxembourg. The notification must include information on the investor, the investment, and the activities involved.
The law also provides for the possibility of the Minister requesting an opinion from the European Commission and comments from other EU member states. The law defines the types of activities that are subject to notification, including research, production, and activities related to sensitive information or locations.
The law also outlines the factors that may be taken into account when assessing the impact of foreign investments on national security or public order, such as the sustainability of critical technologies and dual-use goods, access to sensitive information, and media freedom.
Finally. the law provides for penalties for non-compliance, including fines and the possibility of blocking the investment.