According to ECO, the Portuguese government is carrying out an internal assessment on how to adapt the country's current system to the new European framework, which will require certain foreign investments in strategic sectors to be notified to national authorities before they can proceed, with the new system applying from January 2028.

The changes are part of a wider EU effort to strengthen controls over investments that could pose risks to security or public order. The European Commission said the updated rules will require all Member States to have screening mechanisms in place and will expand the type of investments covered, including some deals made through EU-based companies controlled by investors from outside the bloc.

Portugal already has a mechanism allowing the government to review or block foreign investments that threaten national security or essential services, but it is narrower than the new EU framework

Under the new rules, investments in areas such as defence, semiconductors, artificial intelligence, quantum technologies, critical raw materials, energy, transport, telecommunications and digital infrastructure may face closer scrutiny before they can go ahead.

The new EU regulation entered into force this summer, but Member States have until 17 January 2028 to apply the updated system.

For Portugal, this means setting up a more comprehensive screening process and improving cooperation with the European Commission and other EU countries when investment deals raise potential security concerns.