In July 2026, the Government of the Republic of North Macedonia proposed the adoption of a Law on the Notification and Screening of Foreign Direct Investments, establishing a formal mechanism for assessing certain foreign investments from the perspective of their potential impact on national security, public order and the strategic interests of the state.
The primary purpose of the proposed legislation is not to restrict foreign investments, but to establish a mechanism through which the state can timely identify and assess investments which, due to their nature or structure, may pose a potential risk. In this respect, foreign investment would no longer be considered solely within the corporate and registration framework, but would also be addressed from the perspective of national security and the protection of strategic interests.
Pursuant to the proposed provisions, a foreign direct investment would include an investment through which a foreign investor acquires at least 10% of the equity interest in the share capital and/or voting rights, where the investment enables effective participation or control, provided that the value of the investment amounts to at least 50.000,00 EUR.
Of particular importance for investors is the introduction of an obligation to notify investments that meet the conditions set out in the Draft Law. Depending on the circumstances of the particular case, the acquisition of an equity interest or voting rights in a domestic company may be subject to prior screening. In practice, this means that certain transactions will require the prior completion of a screening procedure and the obtaining of approval from the competent authorities.
The proposed system envisages the involvement of several institutions in the assessment of an investment, with the aim of ensuring that the decision is not based solely on economic criteria, but also takes into account security, financial and other relevant considerations. The final decision is envisaged to fall within the competence of the Government, while the investor would have access to judicial protection through the initiation of administrative proceedings.
From the perspective of legal certainty, a key issue will be the practical application of the criteria for assessing risk. The more precisely the categories of investments subject to screening, the applicable deadlines and the conditions under which an investment may be approved are defined, the greater the predictability for foreign investors. At the same time, it is essential for the procedure to be efficient and proportionate, so that the additional regulatory requirements do not constitute an unnecessary administrative obstacle to legitimate investments.
Accordingly, the Draft Law represents a significant step towards aligning the national regulatory framework with modern practices concerning foreign investment screening. Its practical value, however, will ultimately be assessed through its implementation, particularly with regard to the establishment of clear rules, effective institutional coordination, and a transparent and predictable procedure for investors.