The Swiss Investment Control Act Explained: Scope, Risks, And Practical Impact

Introduction

For decades, Switzerland has been known as one of the most open and predictable jurisdictions for foreign investment. Unlike many comparable economies, it deliberately refrained from introducing a general foreign investment screening regime. This is now changing.

With the forthcoming Swiss Investment Control Act (Investitionsprüfgesetz, IPG), Switzerland introduces targeted scrutiny of certain foreign investments for the first time. While the new regime is deliberately narrow and proportionate, it represents a structural shift for cross-border M&A transactions involving Swiss target companies. In particular, acquisitions by foreign state-owned or state-controlled investors may become subject to approval, depending on whether control thresholds are reached in sensitive sectors or, under higher thresholds, in less sensitive sectors.