SWITZERLAND Trends and Developments Contributed by: Beda Kaufmann, Alexander von Jeinsen, Daniel Raun and Laurent Riedweg, Advestra
Introduction Switzerland generally ranks highly among investors’ favourites and punches above its weight in terms of the amount of foreign investment it attracts in relation to the country’s size and population. This is attributed to multiple factors: Switzerland is often regarded as one of the most competitive and innovative econo - mies in the world, with a highly skilled workforce and a very high number of so-called hidden champions per capita. It offers both political stability and an investment-friendly regulatory and legal framework, including an attractive tax environment. Not least, Switzerland’s quality of life and convenient location in the centre of Europe also play a role in attracting key talents, especially for multinationals relocating their global or regional headquarters. As a result, Switzerland’s economy has long been strongly interconnected with that of the rest of the world and characterised by a high level of interna - tionalisation. Foreign investment into Switzerland is an important part of the equation. Market Activity and Trends Switzerland continues to attract significant invest - ment, and 2024 saw an uptick in Swiss M&A activity compared to 2023 according to KPMG’s Clarity on Mergers and Acquisitions 2025. There has recently also been an increase in public- to-private transactions involving listed companies in Switzerland, with tender offers launched by both stra - tegic investors and financial sponsors. An important transaction for the Swiss market in 2025 was SMG Swiss Marketplace Group’s listing on the SIX Swiss Exchange. Overall, however, there has not been the return to increased IPO activity in 2025 that many were hoping for – although the pipeline looks promising for 2026. In private markets, M&A activity remains robust in Switzerland and foreign interest in Swiss targets persists, although a strong Swiss franc and differences in pricing expectations between buy - ers and sellers continue to pose challenges to inbound deal-making. In a challenging macroeconomic environment, Swit - zerland has so far largely managed to live up to its rep -
utation as a safe haven of stability. Notably, the Swiss National Bank has in June 2025 lowered interest rates to 0% for the first time since the end of 2022, with inflation deemed to be under control. Further, while there are now signs that the long-expected uptick in corporate distress and refinancing situations is about to happen, these cases still seem to be significantly less common and less high-profile here than in Swit - zerland’s neighbouring countries. However, the unexpectedly high tariff rate of 39% imposed on Swiss imports (subject to exceptions) by the United States came as a shock to many in Swit - zerland. While the general economic outlook appears to have largely recovered from this shock and the tariff rate is subject to ongoing negotiations, not all busi - nesses in the relevant industries will be equally able to absorb its effects. Regulatory Environment and Legal Developments Adoption of FDI regime Switzerland has traditionally been an economy open to foreign investment, and investment controls or specific licensing requirements for foreign investors currently only apply in certain sectors. These sectors include the financial sector and residential real estate as well as aviation, telecommunications, nuclear ener - gy and radio/television. However, in line with an international trend that has resulted in more stringent FDI regulations in other jurisdictions, a general FDI screening regime will be introduced in Switzerland too. Following a parliamen - tary motion, the Swiss Federal Council conducted a consultation on the basis of a preliminary draft of the Federal Act on the Control of Foreign Investments, albeit making it clear that it saw no necessity for the piece of legislation. The Swiss Federal Council also concluded from the consultation process that many participants rejected the proposed legislation as being harmful to the Swiss economy and in 2023 revised the draft to limit the new regulations’ potential adverse effects. Following several rounds of debate throughout 2024 and 2025, the bill was adopted by both chambers of Parliament in December 2025. It is expected to come into force no earlier than 2027.
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