In short: regulation of foreign investments in Switzerland
Regulating Incoming Foreign Investments
State investment support programs
Does the state have a foreign investment promotion program?
Switzerland formally encourages foreign direct investment (FDI) through a non-profit private association, Switzerland Global Enterprise (SGE). The main tasks of SGE include informing foreign investors about the advantages of Switzerland as a location, connecting foreign investors with important local partners and offering site visits. The Swiss foreign investment support program has a particular focus on certain key technologies, including artificial intelligence, robotics, blockchain, personalized health and advanced manufacturing. SGE also offers free advisory services to foreign companies considering investing in Switzerland. These services cover a range of subjects including legal, tax, operational and administrative advice and data information. At cantonal level, the SGE has delegated the promotion of foreign investment to regional business development organizations (e.g. Greater Zurich Area, Greater Geneva Bern Area, St. Gallen Bodensee Area and Basel Area Business & Innovation).
Applicable Domestic Law
Identify the national laws that apply to foreign investors and foreign investments, including any investment licensing or registration requirements.
In Switzerland, foreign investments are generally not subject to any formal authorization or registration requirements. An important exception to this principle is the so-called Lex Koller, a federal law that requires the purchase of residential property to be approved by the cantonal authorities. In addition, sector-specific approval, approval and licensing requirements can affect foreign investments in strategically important areas of the Swiss economy. In May 2022, the Federal Council opened a consultation process on a draft law introducing FDI controls. The proposed law is intended to prevent threats to public order and security as a possible consequence of foreign investors taking control of Swiss companies. If the outcome is positive, takeovers of Swiss companies would be examined if the domestic target company operates in a sector critical to public order and security or if the foreign investor is a state or state-related company, in the latter case independent of the activities of the domestic target company. The consultation ran until September 9, 2022, and is to be followed by a final draft that will be discussed in the Swiss Parliament.
Supervisory authority
Identify the government agency that regulates and encourages incoming foreign investment.
The Swiss State Secretariat for Economic Affairs (SECO) is responsible for promoting foreign investments. Since 2008, SECO has delegated operational responsibility for Swiss business location promotion to Swiss Global Enterprise (SGE). Foreign investments are also promoted at cantonal level by regional organizations. The general legal framework for foreign investments is set by the Swiss Federal Parliament, while cantonal governments have the power to regulate certain aspects of foreign investments such as the applicable tax regime.
Competent Dispute Resolution Body
Identify the governmental agency that must be served with a procedure in a dispute with a foreign investor.
There is no predetermined federal agency responsible for representing the Swiss Confederation in investor-state disputes. Switzerland can therefore be served on any federal authority. recently in Human Rights Defenders Inc v Swiss Confederation, the first and only ICSID case registered against Switzerland so far, the investor delivered the polemic to the President of the Swiss Confederation. Later, SECO took over representing Switzerland in the dispute.