Wenger Vieli is pleased to present the first edition of its “Update from Switzerland”. This newsletter is designed to keep clients and contacts informed about the most relevant legal and tax developments in Switzerland, especially those impacting cross-border business.

We hope Interact Law members find these updates useful, and if you have any questions, please contact Dominique Mattmann at Wenger Vieli. 

Economic Developments in Switzerland

Despite the cautious economic outlook published by the Federal Government in March 2026, Switzerland’s economy recorded positive growth in the first quarter of the year. According to the Federal Government’s flash estimate published on 18 May 2026, Swiss real GDP increased by 0.5%, supported by both the industrial and services sectors.

While the overall forecast for 2026 remains cautious in light of weaker global demand, geopolitical uncertainties and the continued strength of the Swiss franc, Switzerland continues to benefit from a stable regulatory framework and a strong innovation ecosystem. Close economic ties with the EU further support the country’s resilience.

Further developments shaping Switzerland in 2026 include:

•  Switzerland–EU relations (Bilaterals III): This package was signed on 2 March 2026. The ratification on the Swiss side requires a public vote. The Bilaterals III package bundles new and updated agreements on institutional issues, electricity, food safety, health and technical barriers to trade, and is intended to place Switzerland’s access to key parts of the EU internal market on a more modern and dynamic legal footing, thereby strengthening long‑term legal certainty and investor confidence.

•  Automotive sector impact: Ongoing pressure on the European automotive industry continues to affect parts of Switzerland’s manufacturing and supplier base, highlighting the country’s exposure to broader European industrial cycles.

•  Europe as an AI hub: Switzerland (and in particular Zurich) is well positioned within Europe’s growing artificial intelligence ecosystem, benefiting from strong research institutions, a highly skilled workforce, and a supportive regulatory environment. This further enhances its attractiveness for innovation-driven businesses.

Key Legislative and Tax Reforms

1) Transparency Register: New obligations for companies and financial intermediaries
The upcoming introduction of a federal transparency register creates a need for action for Swiss companies. Financial intermediaries will likewise be subject to additional duties and responsibilities.

With the Federal Act on the Transparency of Legal Entities and the Identification of Beneficial Owners (“LETA”) adopted by Parliament on 26 September 2025, and the implementing ordinance of the Federal Council (“LETO”), Switzerland is introducing new transparency obligations for legal entities, largely aligned with existing international standards. The new framework is intended to enable Swiss authorities to identify beneficial owners of legal entities more quickly and efficiently. The provisions are scheduled to enter into force in the second half of 2026.

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2) Artificial intelligence – monitoring and gradual alignment
Switzerland is continuing its pragmatic approach to the regulation of artificial intelligence. Rather than creating a standalone AI Act, the Federal Council is reviewing whether adjustments to existing laws, such as data protection, liability and financial regulation, are sufficient.

The Canton of Zurich has become the most advanced Swiss jurisdiction on AI regulation with the revision of its Law on Information and Data Protection (IDG). All public authorities must keep a public register of any algorithmic decision system they deploy that may affect individuals’ fundamental rights. The modernised IDG also expands Zurich’s framework for Open Government Data (OGD). Public bodies are encouraged to publish administrative data in machine-readable form unless overriding interests prevent this.

Zurich’s approach signals a broader trend in Switzerland toward stronger transparency and accountability in AI governance, without restricting innovation. It is anticipated that other cantons, and eventually the federal legislator, may follow Zurich’s lead in developing structured AI oversight.

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3) More flexibility for desirable cooperation between competitors
The partial revision of the Cartel Act (CartA) provides greater flexibility for cooperation between competitors. In the future, the formal classification of an agreement by the Competition Commission (ComCo) will no longer be sufficient on its own to presume a harmful and therefore generally sanctionable anti-competitive agreement; instead, the concrete expected effects on competition will be decisive. In doing so, the legislator is correcting the Federal Supreme Court’s previous practice (the so-called “Gaba case”) and returning Swiss law to the “effects-based approach.” Consequently, the risk of sanctions for undertakings is reduced in the case of cooperation that is desirable from an economic perspective.

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4) Recent tax developments
Implementation of the global minimum tax
Switzerland has implemented the OECD/G20 Pillar Two rules to ensure a minimum tax rate of 15% for large multinational groups. The Swiss Federal Council introduced the Qualified Domestic Minimum Top-up Tax (QDMTT) with effect from 1 January 2024 and the Income Inclusion Rule (IIR) with effect from 1 January 2025. These measures aim to maintain Switzerland’s reputation as a stable and compliant international business hub.