Switzerland about to introduce an FDI Regime

On 2 December 2025, the Swiss Parliament reached an agreement on the Foreign Direct Investment (FDI) Screening Act. Following a narrow approach, only investments by foreign state-controlled investors shall be reviewed.

The new FDI Regime in a Nutshell

During the parliamentary debate that stretched over years, it was long unclear whether an investment screening regime shall be introduced at all. The Swiss National Council initially opted for a much broader framework, also concerning private investors. Meanwhile, the Swiss Council of States was more critical to any such act, voting for a leaner approach that only targets foreign state-controlled investors.

On 2 December 2025, the Swiss National Council followed the Swiss Council of States. Therefore, the FDI screening shall be limited to investments by foreign state-controlled investors and only investments in critical sectors of the Swiss economy such as energy supply, water, military equipment, healthcare infrastructure or transport infrastructure shall be reviewed.

Our Thoughts

In our opinion, the Swiss Parliament has put together a balanced regime: With the agreed narrow approach, only few transactions should fall under the new screening regime. Hence, the regulatory burden is kept relatively small, keeping the Swiss market open for cross-border investments and business. For Switzerland’s competitiveness, this seems more important than ever. At the same time, Switzerland will no longer be the «odd one out» without any regime at all, closing a potential regulatory gap.

For state-controlled investors operating in strategic sectors, the new regulation will place increased attention on their investments. Time will tell whether the new regime will be effective or whether a broader scope is warranted.

You can find the official communication from the Swiss Parliament here (only in German, French and Italian).