Adopts screening mechanism for foreign State-controlled investors
19 Dec 2025
On 19 December 2025, Switzerland adopted a foreign investment screening mechanism, through the Federal Act on the Review of Foreign Investments, adopted by the Federal Assembly of the Swiss Confederation. The regime aims to safeguard public order and national security and applies to acquisitions of Swiss enterprises by foreign State-controlled investors, covering transactions that result in direct or indirect control. Prior approval is required for acquisitions in a defined list of strategically sensitive sectors, including defence-related activities, critical energy and water infrastructure, telecommunications, transport infrastructure, health services, pharmaceuticals, food distribution and systemically important financial institutions, subject to specified size and turnover thresholds. The review is conducted by the State Secretariat for Economic Affairs, in coordination with other federal authorities and the Federal Intelligence Service. Transactions may be approved directly, approved subject to conditions, or subjected to an in-depth review. Acquisitions completed without approval may be unwound, and administrative fines may be imposed for non-compliance. The Act is expected to enter into force in 2027, on a date to be determined by the Federal Council.
Nature of measure:
Type:
-
Entry and establishment (Approval and admission - screening)
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
