GREECE Law and Practice Contributed by: Evangelos (Evans) Courakis, Evangelos Mylonas Tsoumas, Sofia Andreanoudi, Vassiliki Xynou and Ioanna Marouso Argyriou, Koutalidis Law Firm
1.3 Foreign Investment Review Process In general, there are no specific benefits reserved for foreign investments in the energy sector in Greece. As a signatory of the Energy Charter Treaty (ECT), Greece guarantees non- discriminatory treatment to investors, offers compensation for expropriation and other loss- es, and ensures the free movement of capital. However, the EU has decided to exit the ECT, with withdrawal taking effect in one year’s time. Therefore, while Greece as a sovereign state still guarantees investors non‑discriminatory treat- ment under the ECT, this obligation no longer applies on an EU‑wide basis, as the EU itself is no longer a party to the treaty. In this context, when eventually ratified, an inter se agreement among EU member states aims to invalidate the sunset clause for intra-EU investments, mean- ing that such protections will no longer apply to intra-EU investors using the ECT. Nevertheless, these protections will still be in place for inves- tors from non-EU countries, as Greece has also signed bilateral investment treaties (BITs) with several countries. Moreover, foreign investments in certain special and innovative electricity projects may fulfil the eligibility criteria to be designated as “strategic investments”. Such characterisation comes with certain benefits such as the potential to stabilise tax rates for up to 12 years or obtain tax exemp- tions, expedition of the licensing process and provision of financial aid. An important development in the foreign direct investment regime in Greece was introduced by means of Law 5202/2025, entitled “Adoption of measures for the implementation of Regu- lation (EU) 2019/452 establishing a framework for screening foreign direct investments in the European Union for reasons of security or public order”. The Law was adopted on 22 May 2025
by the Hellenic Parliament and published in Gov- ernment Gazette No 84/A/23.05.2025 (the “FDI Law”). Through the FDI Law, Greece has offi- cially enacted its national FDI screening mecha- nism, reflecting the country’s strategic intention to safeguard national security and public order from risks linked to foreign investments, par- ticularly those involving non-EU actors or state- linked entities. This mechanism provides a legal basis for systematic screening of incoming for- eign investments in sectors considered critical to public order or security – including energy infrastructure – and aligns Greece with other EU member states in the application of the FDI Regulation. It should be noted that – previously – no such mechanism existed in Greece. Moreover, third-country investors (ie, investors from non-EU and non-European Free Trade Area countries) wishing to engage in energy transmis- sion services must satisfy certain conditions. In such cases, RAWEW must issue a decision on whether the acquisition could jeopardise public safety or the country’s energy supply and may deny the certification of the transmission opera- tor. RAWEW must also obtain a relevant opinion from the European Commission and notify it of its final decision on the certification. One should also note that there are special restrictions on all foreign direct investments that involve assets in borderland areas of Greece. These restrictions effectively prohibit the pur- chase of land or other in rem rights by third- country residents in such areas without a special permit from the Ministry of National Defence. Such permission is granted after a national security check. The above restrictions could be applicable to acquisitions of energy generation projects located in borderland areas.
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