BFSA between Switzerland and the United
Kingdom
The Bern Financial Services Agreement (BFSA) between Switzerland
and the United Kingdom is scheduled to enter into force on 1
January 2026 and establish a mutual recognition regime facilitating
the cross-border provision of financial services between the two
financial centres.
Nature-related financial risks
The new FINMA Circular 2026/1 on nature-related financial risks
will enter into force on 1 January 2026 and will require the
systematic integration of climate and environmental risks into the
governance and risk management processes of banks and insurance
companies, with a phased approach depending on their prudential
category.
Revision of the Anti-Money Laundering Act
(AMLA)
A revision of the Anti-Money Laundering Act (AMLA) is expected
to come into force in the second half of 2026. This revision
creates a new category of regulated entities: advisers, defined as
persons who, on a professional basis, participate on behalf of
third parties in financial transactions related to certain legal
operations, in particular real estate transactions or transactions
related to the creation, management or domiciliation of
non-operational legal entities (e.g., legal advisors). This
extension aims to subject these activities to due diligence,
documentation and affiliation with a self-regulatory organization
(SRO), in order to strengthen the prevention of money laundering
and terrorism financing also in the non-financial sector in
accordance with FATF standards.
CORPORATE – M&A
Entry into force of the Federal Act on the Transparency
of Legal Entities and the Identification of Beneficial Owners
(LETA)
The Federal Act on the Transparency of Legal Entities and the
Identification of Beneficial (LETA) will come into force in the
second half of 2026 and will introduce a centralised federal
register of beneficial owners of legal entities. This register aims
to enhance corporate transparency and bring Switzerland into line
with FATF Recommendation 24. It will apply in particular to
unlisted public limited companies, limited liability companies,
partnerships limited by shares, cooperatives, investment companies
with variable or fixed capital (SICAV and SICAF) and limited
partnerships for collective investment (SCmPC) as well as foreign
entities with a presence or activities in Switzerland. Companies
will be required to identify, verify, document and update
information relating to their beneficial owners and then report it
to the register within strict deadlines.
PRIVATE CLIENTS
Application of the new LETA to trustees
The Federal Act on the Transparency of Legal Entities and the
Identification of Beneficial Owners (LETA) will apply in particular
to trustees whose registered office is in Switzerland or who
administer foreign trusts from Switzerland (unless they are subject
to the AMLA). They will be required to identify the beneficial
owners of the trusts they administer, including its settlor,
trustee, protector, beneficiaries, and any person who directly or
indirectly controls the trust. Unlike the regime applicable to
legal entities, this information will be kept by the trustee and
will not be entered in the federal register. Foundations and
associations will not be subject to the LETA.
Immigration
- Since 12 October 2025, the Entry/Exit System (EES), dedicated
to the management of the external borders of the Schengen area, has
been in place in Switzerland. Its gradual implementation should be
completed in April 2026. - In the last quarter of 2026, the European Travel Information
and Authorisation System (ETIAS) will come into force, which will
mean that nationals of countries currently exempt from visa
requirements will have to obtain ETIAS authorisation before
travelling to the Schengen area, including Switzerland.
Enhancing Geneva’s attractiveness for
philanthropy
The Geneva Cantonal Tax Administration has recently updated its
practice regarding tax exemptions for associations and foundations
pursuing a purpose of public interest. This update clarifies
several key points, while reaffirming the canton’s commitment
to providing pragmatic and transparent support to actors in the
social and solidarity economy. It sends a positive signal to
Geneva’s philanthropic sector, which now benefits from a
clearer framework that is better suited to current realities. For
example, it is now expressly provided that foundations and
associations may use entrepreneurial financing (impact investing)
and compensate members of their boards or committees for the
performance of certain extraordinary tasks.
TAX
Remote work
An addendum to the French-Swiss tax treaty, which perpetuates
the provisional agreements concluded during the COVID period with
regard to remote work, will come into force on 1 January 2026. In
particular, it provides that activities carried out remotely from
the employee’s country of residence on behalf of an employer
located in the other contracting state are deemed to have been
carried out for that employer in that other state, up to a limit of
40% of working time per calendar year.
- The Federal Act on the International Automatic Exchange of
Information on Salary Data (LEADS) is also expected to come into
force in 2026. This law contains rules for the implementation, in
terms of procedure and the rights and obligations of the parties
concerned, of the automatic exchange of information provided for in
the addendum to the French-Swiss tax treaty, but also in other
existing or future international agreements providing for the
exchange of information on salary data (in particular an agreement
with Italy on the taxation of cross-border workers).
Implementation of CRS 2.0
From 1 January 2026, Switzerland will implement CRS 2.0 and
include crypto-assets in the automatic exchange of information
through the adoption of the Crypto-Asset Reporting Framework
(CARF), imposing new tax due diligence and reporting obligations on
financial institutions, with the first exchange scheduled for
2027.
LITIGATION & ARBITRATION
New criminal law on stalking
From 1 January 2026, Switzerland will finally adopt a specific
criminal law provision to punish obsessive harassment, or
‘stalking’. Until now, such behaviour has been prosecuted
under various provisions of the Criminal Code, which have proved
ill-suited to the reality of this rapidly growing phenomenon,
particularly through social media. The new provision targets
intentional and repeated behaviour, such as following, incessant
messaging, cyberbullying or targeted surveillance, when it causes
the victim to fear for their safety. Perpetrators will face a
custodial sentence of up to three years or a financial penalty.
This reform is a major step forward in protecting victims, who will
still have to file a complaint in order to initiate criminal
proceedings.
REAL ESTATE
Revision of the Code of Obligations
From 1 January 2026, the liability regime arising from works
contracts will be amended. A works contract relating to
construction may no longer exclude the client’s right to demand
repair of defects in the work (Art. 368 para. 2bis CO).
Furthermore, in the case of real estate, the deadline for reporting
defects will be 60 days from the discovery of the problem. This
rule also applies to architect’s and engineer’s plans (Art.
367 para. 1bis CO).
Finally, these rules will also apply to the warranty applicable
to a property sale attached to a work contract or the sale of
building constructed less than two years ago (Art. 219a CO). The
seller will also be required to repair any defects in the building
that are eventually discovered by the purchasers. Thanks to this
revision, the latter will thus enjoy rights vis-Ã -vis the
seller similar to those enjoyed by the customer vis-Ã -vis
the contractor. This aspect will have to be taken into account in
the context of property developments, particularly those applying
the ‘land share/contract for work’ model.
Revision of the law on the legal mortgage of craftsmen
and contractors
The right of legal mortgage for craftsmen and contractors (HLAE)
has also been clarified, with new provisions applicable from 1
January 2026.
As a reminder, the HLAE is an instrument that allows a
contractor or craftsman to register a mortgage on a plot of land on
which he has carried out work unpaid by the customer (even if the
latter is not the owner of the plot).
To prevent this registration, the owner of the plot of land may
provide sufficient security corresponding to the amount of the
unpaid work plus default interest. However, the law did not specify
the period over which this interest should be calculated.
The new provisions (Art. 839 para. 3 CC in fine) thus gives
concrete form to the principle established in case law and
specifies that interest must be calculated over a 10 years period .
The task of owners seeking to prevent their property from being
encumbered with a mortgage will be made easier with regard to banks
– they will now be able to obtain a bank guarantee for a
known maximal amount.
Entry into force of LAT 2
Following the revision of LAT 1 (Federal law on land planning),
which came into force in 2014 and imposed a clear distinction
between building zones and non-building zones, the revision of LAT
2 pursues several objectives aimed at stabilising the number of
buildings located outside building zones.
The revision thus introduces an obligation for cantons (i) to
monitor the location and number of buildings outside building
zones, but also (ii) to incorporate this stabilisation into their
master plans. They will also be required to identify illegal
situations and order restoration in accordance with the law,
including demolition.
At the same time, the new law also stipulates that illegal
constructions that have been in place for more than 30 years
cannot, in principle, be subject to a demolition order.
The LAT 2 will come into force in part on 1 January 2026.
EMPLOYMENT
Taxation of Remote Working Income
The to the French-Swiss tax treaty introduces new rules for the
taxation of telework income. Please refer to the Tax section for
more details.
Minimum wage
As of 1 January 2026, the minimum gross wage in Geneva will be
set at CHF 24.59 per hour. In addition, from summer 2026, a
derogation from the minimum wage could come into force for summer
jobs. At the end of October 2025, the Grand Council of the Canton
of Geneva amended the law on labour inspection and relations to
introduce a derogatory minimum wage for summer jobs set at 75% of
the ordinary minimum wage (i.e. CHF 18.44 per hour (gross wage) in
2026). However, this amendment will be put to a popular vote on 8
March 2026.
Reporting Obligation
As of 1 January 2026, two new categories will be added to the
list of professions subject to reporting obligations: cooks and
maintenance workers (offices, hotels and other establishments).
Standard Employment Contracts and Collective Bargaining
Agreements
Several amendments to standard employment contracts and
collective bargaining agreements will come into force on 1 January
2026.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.