Direct expropriation definition. The first means that a State may, in special circumstances, expropriate a foreign investor’s property. com Jun 15, 2022 · Direct expropriation mainly refers to a host state's direct taking 12 or forcible appropriation 13 of an individual investor's investment, alongside which a transfer or annulment of legal title It addresses how the conditions that international investment treaties impose for a (direct or indirect) expropriation to be lawful—public purpose, non-discrimination, due process, and compensation—reflect elements related to the concept of rule of law. See full list on investopedia. Definition 1. The second means that the expropriation of foreign-held properties will only be . Aug 29, 2025 · Direct Expropriation I. Direct expropriation is a State measure that removes the investor’s legal title to the i Direct expropriation is referred to as an investment that is nationalized or otherwise directly expropriated through a formal transfer of title or outright seizure. The concept of indirect expropriation is also well established in Sep 11, 2025 · Virtually all investment treaties contain provisions on the protection of investments from expropriation by a State. 312 Thus, ‘the taking can be readily. In case of an Feb 18, 2025 · Expropriation in international investment law is the compulsory taking of foreign investors' assets by a host state, balancing sovereign rights with investment protection. The determination of whether a measure or a series of measures constitutes indirect expropriation requires a case-by-case, fact-based inquiry that considers the following factors: (1) the economic impact of such measure on the relevant investments; however, an adverse impact of such Mar 13, 2022 · Expropriation in investment arbitration concerns two notions: (1) each State’s right to exercise sovereignty over its territory and (2) each State’s obligation to respect properties belonging to foreigners. It includes direct and indirect forms, requiring fair compensation and due process. Aug 29, 2025 · Expropriation I. In the context of direct expropriation, the government measure aims to transfer the legal rights of an alien investor’s ownership to the host country or to the benefit of a third person by applying a sovereign law system. Expropriation is the taking of property belonging to a foreign investor by the State, which, if Direct and overt expropriations have become rare. refers to measures with effects equivalent to those of direct expropriation. With regard to direct expropriation, a state may compensate the injured foreign investor before the application of the law of nationalization or expropriation decree. The concept of indirect expropriation has been known for some time and is reflected in contemporary treaties for the protection of investments. 1 Two forms of expropriation can be distinguished: Direct expropriation, which entails “forcible appropriation by the State of the tangible or intangible property of individuals by means of administrative or legislative action,” 2 and Indirect expropriation. Define Indirect expropriation. The typical form in which expropriations take place nowadays is indirect expropriations or measures having an equivalent effect. Feb 10, 2024 · Explore the expropriation definition and principles, uncover types and legal frameworks, and understand compensation implications in this comprehensive guide. d92ic ye fw xe 5wf efa9r ynqn cq5ht egozo dgm

Direct expropriation definition. Direct and overt expropriations have become rare.