Legal Terms Explained in Plain English

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Handelsregister (Commercial Register)

Every Swiss company (AG, GmbH, Kollektivgesellschaft, Zweigniederlassung) must be registered in the cantonal Handelsregister before commencing business. Registration is constitutive for AG and GmbH (OR Arts. 643, 779c). The Eidgenössisches Amt für das Handelsregister (EHRA) supervises the cantonal offices and maintains the Zefix portal (www.zefix.ch — free public search). Key registered data: company name, registered office (Sitz), purpose (Zweck), authorised signatories, directors (Verwaltungsrat/Geschäftsführer), share capital, and filed financial statements for larger companies.

Bundesgericht (Federal Supreme Court)

The Bundesgericht (BGer) in Lausanne (and a branch in Luzern for social insurance) is Switzerland's highest court. It reviews cantonal judgments on law only (Beschwerde in Zivilsachen, Beschwerde in Strafsachen, Beschwerde in öffentlich-rechtlichen Angelegenheiten — BGG Arts. 72–89). Only admissible if: the matter involves a federal law question of principle; or the cantonal court deviated from federal law in a way that affected the outcome; and the minimum value threshold is met (CHF 30,000 in civil cases; CHF 15,000 in tenancy/employment). The BGer publishes judgments (ATF — Amtliche Sammlung des Bundesgerichts) which are binding precedent in Switzerland.

Schuldbetreibungs- und Konkursrecht (Debt Enforcement)

Switzerland's debt enforcement is governed by the Schuldbetreibungs- und Konkursgesetz (SchKG). The Betreibungsamt (debt enforcement office, one per district) administers the process. Steps: (1) Zahlungsbefehl (payment order) served on debtor; (2) if debtor opposes (Rechtsvorschlag), creditor must obtain a court judgment (Beseitigung des Rechtsvorschlags); (3) Pfändung (wage/asset attachment) or Konkurs (bankruptcy for commercial entities). Betreibungsregisterauszug (debt register extract): publicly available for CHF 17-25; shows outstanding Betreibungen — landlords and employers commonly request this. Verjährung (limitation): 10 years for contractual claims (OR Art. 127); 5 years for periodic obligations (OR Art. 128).

Mietrecht (Tenancy Law)

Swiss tenancy law is governed by OR Arts. 253–274g. Key protections: notice periods (Kündigungsfristen) of minimum 3 months to end of a rental period for residential tenancies (OR Art. 266c); tenants may contest terminations within 30 days at the Schlichtungsbehörde (conciliation authority for tenancy); Mietzinsschutz (rent control) — rent increases above the reference interest rate (Referenzzinssatz, set by Bundesamt für Wohnungswesen; 2025: 1.75%) or cost increases require justification; Formularpflicht (use of official cantonal form for lease agreements) in cantons with declared housing shortage. Rental market: vacancy rates in Zurich and Geneva below 1% in 2025 — among Europe's tightest.

Quellensteuer (Withholding Tax on Employment)

Foreign nationals on L and B permits (and C-permit holders in some circumstances) are subject to Quellensteuer (QST) — a withholding tax on employment income collected by the employer and remitted to the cantonal tax authority. QST rates vary by canton, municipality, filing status, and income level. Since the 2021 ESTV (Eidgenössische Steuerverwaltung) reforms: employees with income over CHF 120,000/year (2025 threshold) or with other taxable income must file a nachträgliche ordentliche Veranlagung (NOV — full ordinary tax assessment). Employees below the threshold may request an optional NOV (Antrag auf Tarifkorrektur) if their actual deductions (Berufsauslagen, 3a contributions) would result in a lower tax burden than the withholding tariff.

Berufsunfähigkeitsversicherung / IV (Disability Insurance)

Switzerland's mandatory disability insurance (Invalidenversicherung, IV) is the first pillar disability component (IVG). IV pays a full pension if the disability degree (Invaliditätsgrad) is at least 70%; three-quarter pension for 60–69%; half pension for 50–59%; quarter pension for 40–49%. IV also covers professional rehabilitation (Eingliederung). The second pillar (BVG/Pensionskasse) provides additional disability benefits above the IV minimum. Private Berufsunfähigkeitsversicherung (BU) supplements these for self-employed and high earners, covering the gap between IV/BVG benefits and pre-disability income. Monthly IV full pension: CHF 1,260–2,520 (min–max 2025, depending on contribution history).

Baubewilligung (Building Permit)

Building permits (Baubewilligungen) in Switzerland are regulated at cantonal and communal level (no federal building code). Major construction requires a Baubewilligung (Zonenkonformität — compliance with the Raumplanungsgesetz, RPG, and cantonal Baugesetze). The Raumplanungsgesetz (RPG) at federal level designates land into Bauzonen (building zones), Landwirtschaftszonen, and Schutzzonen. Building outside designated Bauzonen (im Nichtbaugebiet) is generally prohibited without exceptional permits. Processing times vary: 4–16 weeks for standard residential projects; years for contentious developments (objections from neighbours via Einsprache). Nachbarrechtliche Einsprachen (neighbour objections) are a common delaying tactic in Swiss construction disputes.

Erbschaftssteuer / Schenkungssteuer (Inheritance and Gift Tax)

Switzerland has no federal inheritance or gift tax. Cantonal inheritance taxes vary significantly: most cantons exempt direct descendants (Kinder, Enkel) and spouses; non-family beneficiaries pay 18–54% depending on canton and degree of relationship. Cantons with no inheritance tax at all: Schwyz, Obwalden, Nidwalden, Uri, Graubuenden (for direct family). Cantons with tax on non-family beneficiaries: Zurich (rates up to 36%), Geneva (up to 54.6%), Bern (up to 40%), Vaud (up to 25%). No gift tax at federal level; cantonal gift taxes mirror the inheritance tax regime. Switzerland abolished the federal inheritance tax proposal in a 2015 referendum.

Raumplanungsgesetz (Spatial Planning Law)

The federal Raumplanungsgesetz (RPG, SR 700) governs land use planning in Switzerland. The 2014 RPG revision (Volksabstimmung March 2013: 63% in favour) introduced stricter limitations on Bauzonen — requiring cantons to reduce oversized building zones and create more compact urban development. Key concepts: Siedlungsentwicklung nach innen (inward urban development); Mehrwertausgleich (land value equalisation when land is upzoned, typically 20% levy at cantonal level). Lex Friedrich (now Lex Koller) restricts non-resident foreigners from purchasing residential property in tourism-heavy areas — remains highly politically contentious with annual parliamentary debates.

Konkordanzdemokratie (Consensus Democracy)

Switzerland's political system of Konkordanzdemokratie (consociational democracy) has direct relevance to legal practitioners: frequent Volksabstimmungen (referendums) and Volksinitiativen (popular initiatives) can rapidly change statute law. Recent legally significant referendums: the 2021 Ehe für alle (same-sex marriage, passed), 2023 Volksinitiative gegen Massentierhaltung (factory farming, rejected), 2024 BVG-Reform (pension reform, rejected at ballot). Practitioners must monitor the Bundesblatt (Federal Gazette) for Volksabstimmungen affecting legislation in their practice area. A referendum-passed change can take effect within months.