Switzerland: Parliament Passes New FDI Law

In brief

The Swiss Parliament recently adopted the new Swiss Federal Investment Screening Act (ISA), introducing a new mandatory foreign direct investment (FDI) review and approval regime for acquisitions of certain Swiss companies by state-controlled foreign investors. The law reflects Switzerland’s traditionally liberal approach by applying only to state-controlled foreign investors and closely defined targets. It sets high filing thresholds to preserve openness to foreign investments in times of international trade disruptions. The new regime is expected to enter into force by early 2027, following the issuance of implementing ordinances and conclusion of a potential popular referendum process.

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Samantha Salsench and Anna Zellweger, Associates, have contributed to this legal update.