The Belgian authorities have published the third annual report on Belgium’s Foreign Direct Investment (FDI) screening mechanism, covering the period from 1 July 2025 to 30 June 2026. Three years after the regime entered into force on 1 July 2023, the report confirms the continued maturation of the system and provides valuable insights into notification trends, sectoral developments and the operation of the screening process.
Key findings
The latest reporting period saw a significant increase in activity, with 191 notifications submitted, almost doubling the volume recorded during the previous year.
Despite this growth, the vast majority of transactions continued to be cleared without extensive review. Only 4% of cases progressed to an in-depth screening phase, confirming that the vast majority of notified investments continued to proceed through the process without extensive review during the reporting period.
The report also confirms that Belgium continues to adopt a pragmatic approach towards foreign investment. During the reporting period:
- No transactions were prohibited.
- Two transactions were approved subject to mitigating measures.
- Most notified investments were authorised without conditions.
At the same time, enforcement and compliance monitoring appear to be increasing. The authorities issued 27 requests for information regarding potentially non-notified transactions, demonstrating a more proactive approach to identifying investments that may have escaped notification requirements.
Looking ahead
The report also highlights the adoption of the new EU FDI Regulation, which will apply from January 2028 and will require amendments to Belgium’s existing screening framework.
Three years after its introduction, Belgium’s FDI screening mechanism has clearly moved beyond its start-up phase. Notification volumes continue to rise, compliance monitoring has intensified, and FDI screening is becoming an increasingly important consideration in M&A and private equity transactions involving Belgian targets.
While prohibitions remain rare, the first publicly reported refusal under the Belgian FDI regime, issued after the period covered by the annual report, serves as a reminder that foreign investment screening is gaining practical importance for investors, dealmakers and their advisers.
If you would like to discuss how Belgian FDI screening may affect your investments or transactions, please feel free to contact the authors of this article.
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This newsletter is not a legal advice or a legal opinion. You should seek advice from a legal counsel of your choice before acting upon any of the information in this newsletter.