Portugal to tighten foreign investment screening

Portugal is preparing a new law to implement the EU’s tougher foreign investment screening rules, Foreign Minister Paulo Rangel said on Thursday, signalling tighter scrutiny of investments in strategic sectors in a country that has attracted significant overseas capital.

Speaking alongside US Secretary of State Marco Rubio in Lisbon, Rangel said several ministries are already working on legislation to apply the new EU framework, which entered into force in July 2026 and will apply from January 17, 2028. He said the new regime would strengthen Portugal’s ability to control investments from a security perspective and protect vital national interests, whether economic or otherwise.

Rangel said the rules would apply to all countries and were not aimed at any specific state. He noted that Portugal already screens investment under an existing national regime, but said the country is now adapting to a more demanding European system. Under the material provided, the new EU regulation requires a broader and more harmonised ex-ante screening mechanism than Portugal’s current framework.

Rubio used the joint press conference to argue for greater supply-chain and energy diversification, warning against excessive dependence on a single country or region in areas such as pharmaceuticals, biotechnology and telecommunications. He also highlighted risks to submarine cables, an issue Rangel said is critical for Portugal because the country is a landing point for many links connecting both sides of the Atlantic.

Originally published at Eco.pt