Greenland Fast-Tracks Investment Rules After U.S. Property Buying Surge

A sudden wave of American property buyers in Greenland's capital city prompted lawmakers to quickly implement foreign investment restrictions. The activity coincided with President Trump's renewed interest in asserting control over the Arctic territory.

COPENHAGEN – A sudden flood of American buyers seeking real estate in Greenland’s capital city last year has accelerated efforts by territorial lawmakers to establish new foreign investment oversight rules, according to officials and sources close to the matter.

During January 2025, coinciding with President Donald Trump’s renewed push for greater influence over Greenland, legal professionals and property agents in Nuuk began fielding numerous inquiries from potential U.S. purchasers, six individuals with knowledge of the situation reported.

Previously, international buyers had demonstrated minimal interest in acquiring property within the community of 20,000 residents.

“The most aggressive ones wanted to buy everything available on the market,” a Nuuk-based lawyer said, requesting anonymity.

ECONOMIC NEEDS VERSUS POLITICAL CONCERNS

Trump’s focus on the Arctic territory has created a challenging situation for Greenland’s legislators, who must weigh their need for investment capital to revitalize a sluggish economy against concerns about U.S. investors who may harbor undisclosed political objectives.

The identity of these potential investors remained unclear, as did any possible connections to Trump’s Greenland initiative. The territory operates as a semi-autonomous region within Denmark’s kingdom.

However, this unexpected surge of interest concerned legislators, who worried that external purchasers might displace local residents from Nuuk’s already constrained housing supply, three sources indicated. By February 2025, Greenland’s administration had strengthened restrictions on international property acquisitions.

This housing market concern contributed to broader efforts to provide officials with mechanisms for examining the sources of incoming investment funds.

INVESTMENT OVERSIGHT LEGISLATION INTRODUCED IN OCTOBER

Foreign investment screening legislation, which had been under development for an extended period and officially presented to parliament in October, was originally designed partly to guard against unwelcome Chinese investment. However, three sources indicated the emphasis had changed following Trump’s renewed Greenland objectives.

“We are very interested in working with American investors, but not in a way where they try to push certain political goals,” MP Aqqalu Jerimiassen from the Atassut party, which belongs to Greenland’s ruling coalition, stated.

Greenland has consistently worked to broaden its economic base, primarily through pursuing mining sector investments. Nevertheless, insufficient infrastructure, including absent roadways linking the territory’s 72 communities, harsh weather conditions, and workforce shortages have hindered efforts to secure substantial international funding.

Denmark has provided additional funding for infrastructure and development programs, while the EU has suggested more than doubling its financial support. Despite these efforts, the Arctic territory’s economy continues to stagnate, with 2025 growth reaching only 0.2% alongside substantial public finance shortfalls.

MANDATORY REVIEW REQUIRED FOR KEY SECTORS

Initially discussed in November, the screening legislation is scheduled for additional debate in April and is anticipated to receive approval that month. The proposal requires international investors to reveal their funding sources and allows officials to deny transactions if investors’ political connections or intentions create concerns.

“If someone is working for Trump, we will find out with this screening law. This is about our own security,” Jerimiassen continued.

The proposed legislation avoids targeting particular nations but encourages collaboration with allies, suggesting American and European investors might encounter reduced scrutiny compared to Chinese counterparts. Nevertheless, it provides Greenland authority to examine foreign investments deemed security threats.

“The purpose of the law is to prevent foreign investments from posing a threat to Greenland’s security or public order,” the proposed legislation declares. Additionally, it aims to strengthen security for “Greenland and its allies, including NATO member states.”

International investments in essential infrastructure, information technology and classified data networks, natural resources and mining operations, hydroelectric power, and government-controlled enterprises would require mandatory review under the proposed regulations.

The legislation applies only to areas under Greenland’s authority and excludes U.S. military operations on the territory, which remain under Danish oversight.

China has stated it has no plans to compete for influence in Greenland.

TERRITORY REMAINS OPEN TO AMERICAN INVESTMENT, OFFICIAL SAYS

Last month, Drew Horn, a former senior official from Trump’s initial presidency, revealed plans for a multi-billion-dollar data center in Greenland – the type of development some legislators believe demonstrates the necessity for more comprehensive screening procedures.

Greenland’s administration reported it has not received applications or official requests regarding the proposal.

Horn, who currently operates an investment and consulting company, informed Reuters the project lacked political connections and expressed no concerns about meeting screening requirements in Greenland.

“Greenland wants American capital, but we fear hidden political motives behind certain U.S. private investors,” one parliamentary member said, speaking anonymously due to the matter’s sensitivity.

Discussions between Greenland and the United States regarding access and presence on the territory continue, with Trump maintaining demands for “total access” to the island.

Business Minister Naaja Nathanielsen informed Reuters the foreign investment screening legislation was not created in response to U.S. interest and that she remains receptive to American investment.

However, if U.S.-Greenland negotiations failed, she noted, “then of course we would need to reevaluate our position. But we are not there yet.”

Greenland’s housing ministry indicated property limitations implemented last year were precautionary measures not connected to specific information but designed to preserve control over Nuuk’s housing supply.