Switzerland - Real Estate M&A and
Private Equity Edition 11

The article explains the legal and regulatory framework governing Swiss real estate transactions, including the distinction between asset deals, share deals and reorganisations under the Swiss Merger Act, as well as the main acquisition terms, financing structures and tax considerations relevant to such transactions.

A central theme is the continuing importance of Lex Koller, which restricts foreign investment in Swiss real estate and is currently under political review for possible tightening, potentially affecting commercial real estate, listed real estate vehicles and residential acquisitions by foreigners.

The article also addresses growing regulatory scrutiny through anti-money laundering rules and increased political attention to affordable housing and rent controls.

Looking ahead, it concludes that despite rising complexity, regulatory pressure and financing challenges, the Swiss real estate market remains attractive and relatively stable, with strong long-term demand, new opportunities for private and institutional investors, and increasing scope for alternative financing and innovative fund structures.