Investments in another EU country

What is an investment in another EU country?

If your EU business invests capital in another EU country, for example for the purchase of property or shares, your interests are protected by EU investment protection rules. These cross-border Investments can include:

• investing in, acquiring and setting up companies (either directly or through a portfolio) 
• the right to buy, use or sell immovable property, such as offices or a place of residence
• the repurchase of shares and bonds traded and listed on a stock exchange 
• receiving dividends and interest
• the commercial grant of credits, including consumer credit 
• the acquisition of units of an investment fund including mortgages, legacies and loans
• the acquisition of patents, trademarks and other intellectual property rights

Your EU investment protection

EU Treaties provide investors with a high level of protection. This means that actions by EU countries that unreasonably prevent or discourage investment are prohibited in specific cases. Investment protection also means that you can have your rights recognised before an independent national judge. 

In addition to the protection guaranteed by those general EU rules, as a cross-border investor operating in any sector of activity (financial services, transport, energy, telecommunications, public procurement, professional qualifications, intellectual property or company law) you are also protected by specific rules in these areas.

However, EU rules allow EU countries to regulate markets for the public interest, in areas related to security, health, social rights, consumer protection or environmental preservation. This may have consequences for investors. In some cases, national authorities can impose certain restrictions. Restrictions on the free movement of capital or on the freedom of establishment are prohibited, unless they are justified by one of the reasons set out in various EU laws. Examples of such prohibited restrictions include: 

• a ban on acquiring holdings in the capital of a company in another EU country
• prior authorisation schemes for investments in real estate, such as for the purchase of farmland
• any measure that can dissuade, discourage, or deter an EU citizen or EU business from obtaining loans

Investment life cycle 

EU internal market rules govern and protect a cross-border investment throughout its life cycle. If you invest in another EU country, you have the right to:

• Access the market, for example, by setting up new undertakings or buying land in that country.
• Operate on the market and be treated by public authorities under the same conditions as nationals of that country.
• Leave the market, scale down your investments or cease your activity altogether.

As an investor, how can you enforce your rights? 

As an investor, if you consider that your rights have not been respected, you can make use of several means of redress. 

Out-of-court solutions 

Your rights are protected, through several public procedures that are meant to prevent infringements (breaches of EU law) and solve difficulties that investors may experience with national authorities. For example, you can use procedures provided by neutral out-of-court bodies to help resolve your complaint. 

Going to court

You may wish to resort to formal legal action under EU rules by bringing your case to the national courts of the country of the investment. National judges have a special role and responsibility in protecting investments because they are responsible for enforcing EU laws in their country.  

Formal complaint

You can also bring your complaint to the European Commission using the complaint form about a breach of Union law to notify potential violations. The European Commission may follow up by starting an infringement procedure.