Foreign Direct Investment Rules and Regulations, 2025.

The Foreign Direct Investment (FDI) Rules and Regulations, 2025 issued in exercise of power conferred by the Constitution of the Kingdom of Bhutan under Article 20(8), establishes an investor-friendly framework aimed at attracting high-quality foreign investment while supporting the country's vision of becoming a High-Income Gross National Happiness (GNH) Economy by 2034. The regulations consolidate the 2019 FDI Policy and Regulations into a single framework, simplifying approval procedures, expanding priority sectors, permitting up to 100% foreign ownership in selected sectors, and strengthening provisions related to foreign exchange access, technology transfer, employment generation, and investor protection. The regulations allow FDI in all sectors except those listed in the Negative List, with separate requirements for priority and non-priority sectors. They define minimum investment thresholds, foreign equity limits, registration procedures, and approval timelines while providing clear rules on capital repatriation, dividend payments, borrowing, investor visas, work permits, and access to leased land. The framework also guarantees national treatment, protection against expropriation with fair compensation, intellectual property protection, and streamlined single-window services through the Invest Bhutan Division to facilitate investments.