Growing US interest prompts Greenland to change a law initiated over concerns about the Chinese

A surge of interest in property in Nuuk, Greenland's capital, from American buyers has prompted lawmakers in the island's legislature to pass emergency restrictions on foreign purchases and led to changes in a pending foreign investment vetting law, lawmakers and other people familiar with the matter told Reuters.

Six of the Reuters sources say lawyers and real estate agencies in Nuuk began receiving multiple inquiries from American buyers as early as January 2025, when US President Donald Trump began to say more aggressively that he wanted the US to take control of Greenland, an autonomous territory of Denmark.

Until then, foreigners had shown little interest in property in the town of 20,000.

“The most aggressive ones wanted to buy everything that was available on the market,” said a lawyer in Nuuk, who requested anonymity.

Trump's interest in the Arctic island has put its lawmakers in a quandary. On the one hand, they want to attract foreign capital to stimulate a stagnant economy. But at the same time they don't want American investors who they suspect may have ulterior political motives.

Reuters sources point out that it was not clear who the investors were who wanted to buy property in Nuuk or whether their efforts were related to the US president's efforts on Greenland.

But the sudden interest has alarmed lawmakers, who feared out-of-state buyers could push residents out of Nuuk's already strained property market, three of the Reuters sources said. Just one month later, Greenland's government tightened controls on foreign property purchases in February 2025.

Housing fears have fueled broader efforts to give authorities tools to check who is behind the capital flowing into the country.

A new bill on foreign investment in Greenland

The situation led to a long-in-the-works foreign investment verification bill being finalized and officially tabled in the Nuuk parliament in October. It was originally designed, at least in part, as a safeguard against unwanted Chinese investment. But three of the sources said the focus had shifted after Trump's renewed ambitions on Greenland.

“We are very interested in working with American investors, but not in a way where they try to impose certain political goals,” said lawmaker Aqqalu Jerimiassen of the Atassut party, which is part of Greenland's ruling coalition.

The island, the largest in the world that is not also considered a continent (like Australia) has long been trying to diversify its economy, mainly by attracting investment in the mining sector. But limited infrastructure, including a lack of roads connecting its 72 cities, extreme weather conditions and labor shortages have hampered progress in attracting significant foreign capital.

Denmark has allocated additional funds for infrastructure and other development initiatives, and the European Union has in turn proposed a significant increase in funding for the Danish autonomous territory. However, the Arctic nation's economy is stagnating, with growth of just 0.2% in 2025 and a significant public finance deficit.

Greenland introduces mandatory investment checks in certain areas

Debated in a first reading in November, the investment verification bill is scheduled for further discussion in April and is expected to be adopted that month. The bill forces foreign investors to disclose the origin of funds and gives authorities the power to reject deals if the investors' political affiliations or intentions raise concerns.

“If someone is working for Trump, we will find out through this vetting law. This is about our own security,” Jerimiassen emphasized.

The proposed bill does not explicitly target specific countries, but encourages cooperation with allies, indicating that American and European investors could be subject to less scrutiny than Chinese ones. However, it gives Greenlandic authorities the necessary prerogatives to review foreign investments deemed a security threat.

“The purpose of the law is to prevent foreign investment from posing a threat to security or public order in Greenland,” the legislative text reads. In addition, its objective is to strengthen the security of “Greenland and its allies, including NATO member states.”

Foreign investments in critical infrastructure, IT and classified data systems, raw materials and mining, hydropower and state-owned companies will require mandatory vetting under the proposed law.

The legislation is limited to areas under Greenland's jurisdiction and does not extend to US military activities on the island, which will remain under Danish supervision. One of the demands made by the Trump administration is that the US be given full control over the territory on which US bases are located.

A lawmaker says Greenland still wants US capital

Drew Horn, a former top adviser in the first Trump administration, last month announced plans for a multibillion-dollar data center in Greenland — the kind of project that some lawmakers in Nuuk see as evidence of the need for clearer vetting rules.

The Government of Greenland stated that it had not received any formal application or request related to this proposal.

Horn, who now runs an investment and consulting firm, told Reuters the project had no political ties and that he had no concerns about meeting potential verification requirements in Greenland.

“Greenland wants US capital, but we fear hidden political motives behind certain US private investors,” a member of Greenland's legislature told Reuters, speaking on condition of anonymity because of the sensitive nature of the subject.

Negotiations between Greenland and the US regarding access and presence on the island are ongoing, and Trump continues to insist on “full access” to the island.

Naaja Nathanielsen, Greenland's minister for economic affairs, argued in comments to Reuters that the foreign investment vetting law was not written in response to US interest and that it continues to welcome American investment.

However, if negotiations between the US and Greenland fail, she says, “then of course we would have to reassess our position.” “But we're not at that point yet,” she points out.

Greenland's housing ministry said the property restrictions imposed last year were a precautionary measure, not linked to specific dates, but intended to maintain control over housing availability in Nuuk.