The Department of Enterprise, Tourism and Employment has published its first Annual Report under the Screening of Third Country Transactions Act 2023 (the Act), covering the period from commencement on 6 January 2025 to 31 December 2025. The Act introduces, for the first time in Ireland, a formal mechanism for screening certain foreign (non-EU/EEA/Swiss) investments to protect national security and public order and enables Ireland to participate in the EU cooperation mechanism under EU Regulation 2019/452 (the FDI Screening Regulation). This first report provides a valuable insight into how the regime is operating in practice.
Headline Statistics
In its first year, the Investment Screening Unit received 102 notifications. Of these, 66 did not meet the mandatory notification criteria. The Unit issued 26 screening notices triggering an in-depth review, with 8 still under assessment at year end, 1 withdrawn, and 1 rejected as incomplete. Of the 26 transactions screened, none were prohibited. Two were approved subject to conditions-both requiring contractual arrangements to ensure continuity of critical services provided by the target. The Minister’s discretionary “call-in” power was not exercised.
Sector Focus and Investment Origins
Critical infrastructure dominated the screening caseload, accounting for 18 of 26 screening notices, followed by critical technologies and dual-use items (4), supply of critical inputs including energy and raw materials (3), and access to sensitive information (1). The top five sectors by total notifications were energy (7), telecommunications (6), ICT (6), health (4) and pharmaceuticals (3). Of the 26 screened transactions, 23 were direct and 3 indirect. The United States (9) and the United Kingdom (8) were the most frequent source countries, followed by combined US/UK transactions (2), the United Arab Emirates (2), Monaco (1), and China (1).
Assessment Timelines
As this is the first annual report, no prior-year Irish data exists for direct comparison, but the report offers useful internal benchmarks. Initial assessments were completed in an average of 9.76 days, with roughly two-thirds resolved within the Unit’s 10-day target. For in-depth screening reviews, the statutory timeframe is 90 days (extendable to 135 days). In practice, the average review took just 40.5 days, with about two-thirds of decisions issued in under 40 days.
EU Cooperation and Regulatory Reform
Ireland shared 23 notifications with other Member States and the Commission under the EU cooperation mechanism and reviewed 74 notifications from other Member States with an Irish element. At EU level, the Council and European Parliament reached political agreement in December 2025 on a revised FDI Screening Regulation, since formally adopted, with new rules to apply 18 months after entry into force.
Practical Takeaways for Businesses and Investors
There are several lessons for businesses and investors.
- Transactions involving any non-EU/EEA/Swiss acquirer should be assessed against the four-part mandatory notification test under Section 9: (a) acquisition of control or a threshold increase in shareholding/voting rights (crossing 25% or 50%); (b) cumulative transaction value of €2 million or more (including related transactions in the prior 12 months); (c) the parties are not under common control; and (d) the transaction relates to a relevant sector-critical infrastructure, critical technologies, supply of critical inputs, access to sensitive information, or media pluralism.
- The €2 million value threshold is notably low, meaning relatively modest transactions can trigger a mandatory notification. And, as 2025's data shows, the majority of screened investments originated from allied jurisdictions (the US and UK) - not states traditionally associated with national security concerns.
- Investors in energy, telecommunications, ICT, health, and pharmaceuticals should be particularly alert, as these accounted for the highest volume of notifications. More broadly, any transaction touching critical infrastructure, critical technologies, critical inputs, or sensitive data is potentially in scope.
- Transaction timetables should factor in screening timelines. While the average review was completed in approximately 40 days, the statutory maximum extends to 135 days, and closing conditions should be drafted accordingly.
- Finally, the report confirms that to date conditions - focused on continuity of critical services - have been the primary intervention tool, where required, rather than outright prohibition, consistent with Ireland's longstanding foreign direct investment strategy.
For further information, please contact John Gaffney or your usual contact in Beauchamps LLP.