Gorrissen Federspiel has for many years had a strong focus on Greenland. In 2019, we established a formal cooperation with the Greenlandic law firm Arctic law, and since then, we have continuously posted employees to Greenland.
We are following the recent situation pertaining to Greenland closely. During the weekend, the President of the United States announced that the United States intended to apply 10 percent in taxes on goods from Denmark and other European countries as a consequence of the situation pertaining to Greenland.
Meanwhile, the European Union has announced its intention to intensify investments in Greenland, and a number of companies are currently planning to establish a presence in Greenland.
Further, Greenland has proposed new legislation for the screening of foreign direct investment. The proposed regulation is expected to be approved by the Greenlandic Parliament in February 2026 and will entail government approval for numerous investments in Greenlandic companies and new business operations. This represents a major shift in Greenland’s investment framework and will substantially reshape the commercial environment.
Below we have provided an overview of the considerations associated with establishing a presence in Greenland or investing in activities in Greenland and given the current political climate we recommend that companies include neutral dispute resolution clauses insofar as possible. We would generally recommend that disputes are referred to arbitration under the rules of internationally recognised institutes with the arbitral seat in a different country.
Depending on the investment it may also be worthwhile taking out insurance which covers different scenarios. We have vast experience with such specialised insurance products and are happy to give input on how to achieve the best protection possible.
The United States implemented new, higher “reciprocal” tariffs (around 10-15%) on many European goods starting mid-2025. Following a period of negotiation and postponed actions, the EU and US concluded the EU-US trade agreement in July 2025. The agreement has, however, not yet been approved by the EU Parliament.
A new development in January 2026 saw threats of further 10% tariffs on eight specific EU countries (Denmark, Norway, Sweden, UK, France, Germany, Netherlands, Finland) over Greenland.
The decision to apply additional taxes on goods from selected European countries has not been formally adopted, and the current conditions for trade between the European Union and the United States are currently unchanged. Should there be any changes, we will issue a newsletter setting out the changed conditions.
The Danish Industrial Association has compiled an overview of the current tax regimes on this webpage: USA under Trump – betydning for danske virksomheder – DI
The Greenlandic Act on Public Limited Companies and Private Limited Companies provides several options for establishing a legal entity in Greenland. The choice of company form depends on the needs and desired market presence.
When establishing a business in Greenland, several important factors must be considered. Greenlandic legislation may impose specific requirements, including Greenlandic residence and ownership criteria, activity permits, and obligations to draw from the Greenlandic workforce. It is essential to first clarify the type of business activity planned and the applicable requirements
Establishing a Greenlandic entity also offers opportunities to strengthen local ties through Greenlandic management representation and workforce engagement, both to meet regulatory requirements and tax implications and to ensure optimal market positioning. However, the conclusion stands: Greenland remains “Open for Business”.
The Greenlandic Parliament is currently considering implementing new regulation on screening of foreign direct investments. If passed, the regulation will fundamentally reshape Greenland’s commercial environment, and businesses with operations or interests in Greenland should start preparing now for these regulatory changes and their consequences.
The draft regulation applies to foreign investors, including individuals who are not Danish citizens, companies domiciled outside Greenland or Greenlandic entities controlled by foreign companies, and foreign governmental bodies.
The draft regulation covers a wide range of investments, including acquisitions of more than 25% of shares or voting rights in Greenlandic entities, acquisitions of decisive influence through asset purchases, loans, leases or supplier agreements, and commencing activities that is considered national security or public order or permits.
The draft regulation may be accessed here: ina.gl | Inatsisartut
In light of the political turmoil securing an investment is key. We recommend to:
In the Greenlandic context, where traditional investment protection mechanisms are limited and geopolitical risks are high, it is crucial to have experienced advisers who understand both the legal tools and the political realities.
As a full-service firm, we have the scale and expertise to advise companies on these critical issues. We cover all legal aspects of Greenlandic investments – from initial structuring to dispute resolution.
Our team consists of lawyers with deep insight into international law, institutional arbitration and investment arbitration, and complex regulatory disputes, anchored in a deep commercial understanding.
Gorrissen Federspiel has a track record of successfully protecting clients’ interests in challenging jurisdictions and critical geopolitical contexts.
We collaborate with law firms around the world, including in Greenland, and can draw on a vast network of the best specialists in all relevant areas and sectors when necessary.