Switzerland Ends Hands-Off Stance With Landmark Foreign Investment Screening Law

Investments December 21, 2025

For years, Switzerland stood out as one of the few major economies without a broad system to screen foreign takeovers. Deals moved with little friction, and only a few narrow rules applied. That long run is now coming to a close. Parliament has backed the Foreign Investment Screening Act, or FISA, and it signals a real shift in the country’s economic approach.

Lawmakers want tools that help them step in when a deal threatens public order or national security, and the change shows that Switzerland is no longer willing to rely on goodwill alone.

The move did not come out of nowhere. Geopolitical tension has surged, and big headline deals have made the gaps in Swiss law hard to ignore. The most famous case is the 2017 takeover of Syngenta by state-owned ChemChina. It was enormous, it was sudden, and it raised alarms about how exposed Swiss companies were. Supporters of the new law said the country needed a clear way to handle takeovers tied to foreign governments. FISA is built to meet that need.

Who Does the Law Target?

Henri / Unsplash / Early proposals cast a wide net that included all foreign buyers, but lawmakers decided that this was too heavy for an economy built on openness.

The final law focuses only on foreign state-controlled investors. That includes companies run or heavily influenced by a foreign state, plus individuals working on a state’s behalf. The idea is simple. Private investors still get open access, but government-linked investors face checks when they move into sensitive ground.

This targeted approach gives regulators a clearer job. It avoids turning every deal into a long process, but it still protects the sectors that matter most. It also keeps Switzerland competitive. The country attracted a surge of foreign investment in 2024, rising even as much of Europe slowed down.

Supporters say this proves the law is being introduced from a strong position

What Counts as a ‘Critical Sector’?

The law divides sensitive areas into two groups. Tier 1 covers the tightest security fields, like the production of war material, key energy networks, water systems, and security-related IT services. Deals in these areas trigger a review when the target company reaches at least 50 full-time staff or makes 10 million Swiss francs in yearly revenue.

Lawmakers wanted fast visibility into deals that touch the core of public safety, so these thresholds are set low.

Photo / Unsplash / The State Secretariat for Economic Affairs, SECO, will handle the screening process. It follows a two-step model that keeps reviews moving.

Tier 2 covers important sectors that are one step below direct security operations. This includes large hospitals, pharmaceutical leaders, major transport hubs such as airports and rail lines, big food distributors, telecom networks, and systemically important banks. These sectors are essential for everyday life and economic stability, but the review threshold is set higher.

A review is only triggered when the company involved has annual revenue or gross income above 100 million francs.

How the Review Works

Phase I lasts a month and acts as a preliminary filter. If a deal appears risky, it moves into Phase II, which can last up to three additional months. This two-step approach allows regulators to scrutinize higher-risk transactions while avoiding delays for low-risk ones. The Federal Council has the final say on whether a takeover is allowed.

The law was passed by Parliament in December 2025 and will reach full implementation in 2027 after the government issues the final ordinance. This timeline helps companies adapt and allows regulators to build the systems needed to manage reviews efficiently.

Switzerland is joining a global trend. Over 80% of EU and OECD countries already operate screening mechanisms. The U.S. updates its rules regularly, and the EU has been gradually expanding its framework. By comparison, Switzerland’s approach is relatively measured.