SWITZERLAND Law and Practice Contributed by: Francis Nordmann, Johannes Bürgi, Christian Eichenberger and André Kuhn, Walder Wyss Ltd
4.6 Agreements With Local or Governmental Authorities
• the Federal Act on Spatial Planning ( Raump- lanungsgesetz – RPG); • cantonal planning and construction laws ( Pla- nungs- und Baugesetz ); and • municipal zoning and construction laws ( Bau- und Zonenordnungen ). Various other federal and cantonal laws also apply, such as: • the Environmental Protection Act ( Umwelts- chutzgesetz ); • the Noise Control Act ( Lärmschutzverord- nung ); • the Clean Air Act ( Luftreinhalteverordnung ); • the Water Protection Law ( Gewässer- schutzgesetz ); • the Energy Law ( Energiegesetz ), etc. 4.4 Obtaining Entitlements to Develop a New Project The building permit application must be filed with the competent authority (typically the municipal authority), which will publish it if all formal requirements are met. The building permit must be granted if the project complies with all applicable regulations. Third parties that are affected by the project (eg, neighbours) and organisations entitled to appeal may object. 4.5 Right of Appeal Against an Authority’s Decision Applicants and third parties that have objected to the building permit have the right to appeal to the superior administrative authority against the relevant authority’s decision. The decision of the superior administrative authority may be appealed to the Administrative Court.
Formal agreements with the authorities are not permitted, with the exception of certain aspects of the project (eg, infrastructural requirements). However, informal, non-binding negotiations with the authorities often take place before the building permit application is filed. 4.7 Enforcement of Restrictions on Development and Designated Use The competent authority must monitor the reali - sation of the project, and the completed project is subject to formal acceptance proceedings. Violations of the permit are subject to sanc - tions, and the removal of illegal structures may be ordered. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Depending on the corporate structure of the buyer, including the ultimate beneficial owner or sponsor, newly established Swiss or foreign spe - cial purpose vehicles (SPVs) are used by inves - tors to hold real estate assets. Foreign SPVs are primarily domiciled in countries that have entered into double taxation treaties with Swit - zerland, to avoid withholding tax and ease an exit by share deals. Foreign SPVs domiciled in offshore jurisdictions are also used. Real estate investment funds also commonly invest in Swiss real estate. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity A company with limited liability may be estab - lished by natural persons or legal entities. This requires a declaration in front of a public notary that the founder(s) is (are) forming such compa -
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