Moving to Switzerland

Switzerland features four language regions: Romansh in the southeast, Italian in the south, French in the west, and German in the remainder of the country. The most widely spoken language is Swiss German, which is a catch-all term for the wide range of dialects spoken throughout Switzerland’s German speaking region. Swiss German is considerably different from the German spoken in Germany or Austria.

At 25%, Switzerland has one of the highest proportions of foreigners in Europe, the presence of whom has contributed greatly to the country’s rich cultural diversity. According to international rankings, Switzerland and especially the greater Zurich area top the list of the world’s most attractive locations for talented professionals.

Swiss citizens are afforded exceptional democratic rights and privileges allowing them to partake in the political decision-making process and to exert a direct impact on government policy by launching initiatives and referendums. For example, in September 2020, the Swiss people voted to pass a law allowing fathers to take 10 days of paid paternity leave.

If you are staying in Switzerland for less than a year, you may drive with your foreign driver’s license. After a year of residing in Switzerland, foreign nationals must apply for a Swiss driver’s license. Depending on the country of issuance, either your foreign license will be converted automatically or you will have to pass a practical exam. For further information, we recommend contacting the cantonal department for motor vehicles.

In general, business meetings in Switzerland may be attended without a work authorization. However, only a very limited number of activities meet the definition of business meetings by the Swiss immigration authorities. According to the guidelines of the Federal Migration Office, the following activities are generally permitted under the term “business meetings”:

Theoretical trainings (excluding internship)

• Attending theoretical and technical courses at a Swiss-based company pertaining to sales, delivery, after-sales services with respect to technical facilities to customers abroad (e.g., training provided by a Swiss manufacturer to employees of a foreign client about the latest products sold)
• Attending theoretical courses
• Attending workshops
• Attending seminars and conferences

Other meeting types

• Representative visits of high-level staff
• Contract negotiations
• Internal meetings
• Supervisions
• Pre-assignment viSupervisionssit

Business meetings are by nature of very short duration and should not exceed two weeks. No operational work can be performed in Switzerland and the activity shall not constitute a gainful activity.

90 days online announcement

The online notification procedure is a simplified process under which any EU/EFTA-based company can assign any EU/EFTA national or non-EU/EFTA national working within the EU/EFTA labor market for at least 12 months to work in Switzerland for a maximum of 90 working days per calendar year. The 90 days are allocated per legal entity, assignee and calendar year.

The online announcement covers the work performed in Switzerland and no further formalities need to be observed (visa requirements may apply depending on nationality).

The online registration must be completed at least 8 days before the first working day in Switzerland. Swiss customary salary and mandatory assignment allowances apply.

L Permit up to 4 consecutive months/120 non-consecutive days within 12 months

If the online announcement is not sufficient, this type of work permit allows the foreign individual to work up to four consecutive months or 120 non-consecutive days in Switzerland over a 12-month period. This permit is not subject to quotas or registration.

Short-term L permit (for more than 4 months)

This type of work permit allows the permit holder to work in Switzerland for up to 12 months and can be extended to two years. The L permit is subject to quotas and expires once the employee deregisters from Switzerland or spends more than three months in a year outside of Switzerland.

Dependents can join the employee in Switzerland, but they will not automatically receive a work permit. If dependents of a person holding an L permit wish to work, a separate application needs to be filed by their employer.

Long-term B permit

This type of work permit allows the permit holder to work in Switzerland for up to five years and is generally granted for long-term assignments (at least two years).

For non-EU/EFTA citizens, the permit is usually issued for one year but can be renewed annually for up to five years (generally issued for five years for EU/EFTA nationals).

The B permit is subject to quotas and expires once the employee deregisters from Switzerland or spends more than six months in a year outside of Switzerland.

Family members can join the permit holder in Switzerland and will receive a work permit as part of the family reunion.

Cross-border permit (G permit)

EU/EFTA nationals with a local Swiss employment contract may receive a G permit to work in Switzerland provided that the employee returns to his/her place of residence abroad at least every week.

Non-EU/EFTA nationals are granted a G permit if they hold a permanent residence permit in a neighboring country and have had their regular place of residence in the border zone for at least six months. The workplace must be in the Swiss border zone.

Permanent residence permit (C permit)

The permanent residence permit may be issued after five or ten years of residency in Switzerland depending on the nationality. C permits are granted for an unlimited duration but the permit card must be renewed every five years.

C permit holders may engage in any legal activity in Switzerland. They may change their employment or profession without requesting approval from the Swiss immigration authorities.

The permit expires once the permit holder deregisters from Switzerland or spends more than six months in a year outside of Switzerland. For certain stays abroad (professional assignments, etc.), the permit can be suspended for a maximum duration of four years.

Old age, disability, survivors and income compensation insurance (OASI)

The first pillar state pension is a mandatory social insurance scheme which guarantees a minimum income after reaching the retirement age, in case of disability or for the survivors after the death of the insured person.

Contributions are due for (exceptions may apply):

• Non-working individuals holding Swiss residency as of 1 January of the year following their 20th birthday (unless they are covered under the contributions of their employed spouse)
• Gainfully employed individuals as of 1 January of the year following their 17th birthday
• People working beyond the ordinary retirement age
• Individuals working abroad on behalf of a Swiss employer

Although Switzerland does not have a cap on OASI contributions, it should be noted that the contributions are moderate compared with other countries.

The contribution rate for gainfully employed individuals is 10.6% with equal contributions by the employer and the employee.

Benefits

People of the retirement age (64 for women and 65 for men) are entitled to an old-age pension. Annual old-age pensions are a minimum of CHF 14,700 and can be as much as CHF 29,400 if the individual has fully contributed to the Swiss social security scheme (44 years). There are various additional benefits that can also be claimed from the first pillar.

As a heads up, the Swiss electorate has accepted the Swiss 1^st pillar reform (“AHV 21 Reform) on 25 September 2022. This reform is intended to secure the Swiss 1^st 1st pillar until 2030. The reform will be financed through the increased legal retirement age for women (65) and the increase in value-added tax. The reform is expected to come into force on 1 January 2024.

Unemployment insurance

Individuals who have worked for more than 12 months during the last two years in Switzerland before being laid off are eligible to claim unemployment benefits. The contribution rates for unemployment insurance are 2.2% of employment income with a cap of CHF 148,200, and an additional 1% of the remuneration exceeding CHF 148,200. However, as of 01.01.2023, the solidarity contribution of 1% on annual salaries above CHF 148’200 will be waived. The employer is required to pay the contributions to the Swiss authorities and then deduct 50% of the contributions from the employee’s salary.

The maximum insured salary for unemployment benefits under local law is CHF 148,200. The individual can expect roughly 70%-80% of the original salary (average of the last 12 or 6 months) from unemployment benefits up to the maximum insured salary.

Maternity and paternity insurance

For the canton of Geneva, there is a specific maternity contribution (AMAT) due on the salary of 0.082%, paid in equal parts by the employer and the employee. In the other cantons, maternity and paternity insurance is financed solely via contributions to the income compensation insurance.

All employed or self-employed women are entitled to 14 weeks of maternity leave (16 weeks for the canton of Geneva). During the leave, they receive 80% of their salary (based on the average annual salary) or a maximum of CHF 196 per day.

All working fathers are entitled to two weeks of paternity leave (10 days off work). As for the maternity leave, the compensation amounts to 80% of the average earned income before the birth of the child, up to a maximum of CHF 196 per day. For two weeks of leave, 14 daily allowances are paid amounting to a maximum of 2,744 francs.

Family allowances

Employees and self-employed persons living in Switzerland who have declared a salary of at least CHF 597 per month to the Swiss first pillar scheme are entitled to receive family allowances. The contributions for family allowances are covered by the employer based on the annual salary of all employees irrespective of whether employees have any children. The contribution rate depends on the canton.

For children up to 16 years old (up to 20 years old for children who are ill or have disabilities and are unable to work), a child allowance of at least CHF 200 per month and child is paid by the authorities. The exact amount disbursed depends on the respective canton.

For children between 16 and 25 who are students or are undergoing vocational training an education allowance of at least CHF 250 per month and child is paid by the authorities.

Health insurance

The premiums are fully covered by the individual (no employer contributions) and vary depending on the insurance provider, age, place of residency, etc. However, the basic state health insurance coverage is established by law and is identical across all providers. Individuals may be exempt from the mandatory health insurance obligation upon request if certain requirements are met.

An individual’s tax residency status is relevant for taxation purposes. Domestic law establishes that an individual is a Swiss tax resident if his or her center of vital interest is in Switzerland and/or if the individual is present in Switzerland for a certain amount of time during the tax year.

If an individual qualifies as a tax resident of Switzerland as well as of another country according to the other country’s domestic laws, the double taxation agreement in place (if any) between Switzerland and the other country must be consulted in order to determine which of the two countries is afforded the right to unlimited taxation of the resident. The following flowchart is intended to summarize how the tax residency status in Switzerland is determined.

Under Swiss law, the employer is obliged to take all necessary and feasible measures to safeguard the health, safety and integrity of its employees. This responsibility applies from recruitment and includes different overarching duties, such as a duty of information (e.g., training and briefings, access to expertise), a duty of prevention (e.g., insurances against various risks), a duty of monitoring (e.g., safety and security information and documentation) and a duty of intervention (e.g., crisis and risk management, complaints mechanism, disciplinary procedures).

If the employee, for reasons inherent to his or her person, such as sickness, accident or compliance with legal obligation, by no fault of his or her own is unable to perform his or her work, the employer must pay the corresponding salary for a limited period. If longer periods have not been fixed by agreement, the employer must pay the salary for three weeks during the first year of employment and for longer periods in following years, depending on the scale used. As an example, according to the scale of the canton of Berne (one of the most common scales in Switzerland) the employer must pay the salary for one month during the second year of employment, two months during the third and fourth year of employment, etc.

Employers therefore have a duty to protect employees against the financial consequences of an accident and must provide accident insurance that grants daily benefits to the employee from the third day after the accident, alongside other benefits. Although it is not mandatory, it is also common for employers to provide daily sickness benefits insurance, granting employees daily sickness benefits in case of illness following a specified waiting period, usually 30, 60 or 90 days. These obligatory salary continuance payments also apply for employees who are assigned from their home country outside of Switzerland.

Pursuant to article 340 Code of Obligations (CO), the parties may agree (in writing) that the employee commits to refrain from engaging in any activity competing with the employer’s business during and after the termination of the employment relationship, in particular neither to operate a business for his or her own account which competes with the employer’s business, nor to work for, or to participate in, such a business which competes with the employer. Such competition ban is only binding if the employment relationship has given the employee access to client information, or to manufacturing or business secrets, and if the use of such knowledge could significantly damage the employer’s business. The competition ban must be appropriately limited in terms of geographic area, duration and scope such that it does not unfairly compromise the employee’s future economic activities.

If you’re moving to Switzerland as a married couple, your marriage validly celebrated abroad is recognized in Switzerland (art. 45 PILA). If you get married in Switzerland, the celebration of marriage in Switzerland is governed by Swiss law (art. 44 PILA).

Under Swiss law, marriage may be entered into by two persons who have reached 18 years of age and have capacity of judgement. Since 1 July 2022, marriage is also open to same-sex couples (art. 94 CC). Before the introduction of same-sex marriage, a so-called “registered partnership” was open for same-sex couples. Since 1 July 2022, this institute can no longer be established. However, existing registered partnerships can be continued without specific declaration and may therefore continue to exist in the future.

In Switzerland, the wedding ceremony takes place in the presence of the civil registrar (after completing a certain preparatory procedure). An additional religious wedding ceremony is possible and permitted, but may not take place prior to the civil ceremony (art. 97 CC).

Separation and divorce

If living together is no longer possible/desirable in a marriage, the spouses will usually take up the separation, i.e., one of the spouses moves out of the family home. For the time of separation, the spouses may either settle the circumstances themselves (particularly regarding joint children and financial terms) or, if this is not possible, with the help of lawyers or by judicial regulation.

If the separation affirms and the spouses decide to stay separated for good, there are two ways to achieve a divorce. Firstly, by Swiss law, a marriage can only be dissolved by the state civil courts (same applies for a judicial separation or revocation of the marriage; both rare in practice). On one hand, a divorce under Swiss law can occur if the spouses agree and submit a joint request to the court for dissolution of the marriage. If the spouses don’t agree on the divorce, each spouse may file an action for divorce on his/her own behalf. In this case, a previous separation of two years is required (there is an exception to this requirement if the continuation is no longer reasonable for serious reasons; high demands are attached to this).

In the event of a divorce, Swiss civil courts will examine whether there is a will to divorce. If this is affirmed, the court regulates the individual consequences of divorce. By Swiss law, these are the following (art. 119 et seq. Swiss Civil Code):

• Name: a spouse who has changed his/her surname on marriage retains that surname following divorce. However, the name may be changed to the name prior to the marriage at any time.
• Marital property law and inheritance law: click on the next buttons for more information.
• Family home: arrangement on which of the spouses remains resident in the family home
• Occupational pensions: Any occupational pension assets accrued during the marriage up to the time when divorce proceedings initiated are divided equitably (special rules apply in case of disability pension and retirement pension).
• Post-marital alimony: a spouse is entitled to this maintenance if he/she cannot reasonably be expected to provide for his or her own maintenance (incl. an appropriate level of retirement provision). In deciding whether such a contribution is to be made and, if so, in what amount and for how long, the court considers a list of categories (e.g., division of duties during the marriage, duration of the marriage, age and health of the spouses, income and assets of the spouses, extent and duration of child care still required of the spouses, etc.). Please note that the Swiss Federal Supreme Court has significantly tightened its requirements in this regard in the recent years.
• Children: if the divorced spouses have joint children who are still minors, the divorced spouses usually remain jointly responsible for them. They’re obliged to jointly provide maintenance for them. The court regulates parental rights and obligations; in particular: parental care, residence, contact or sharing of parenting duties and child maintenance contributions.

Swiss inheritance law knows a dual system of intestate and testamentary succession, i.e., there may be statutory heirs and/or appointed heirs (more on this below).

In either case, on the death of a person, his/her heirs become joint owners of the entire estate (universal succession). Therefore, all statutory and appointed heirs form a community of heirs. Further, the acquisition of the inheritance takes place automatically without any transfers or involvement by the authorities. All rights (e.g., claims, rights of ownership and rights of possession; subject to certain exceptions) and liabilities of the deceased pass to his/her heirs. Debts of the deceased become personal debts of the heirs (please note in this regard: statutory and appointed heirs are entitled to renounce the inheritance within three months after becoming aware of their inheritance). Both principles are mandatory law and cannot be prevented by a will (art. 560 CC).

Swiss inheritance law regulates who the deceased’s heirs are if neither a testamentary disposition nor a contract of inheritance exists. By testamentary disposition or inheritance contract, the legal succession may be modified within legal limits. The revised Swiss inheritance law entered into force on 1 January 2023. The core of the revision is the testator's freedom of action to comply with changed realities of life and family forms. The statutory succession remains unaffected by the revision of the law, whereas the forced heirship is being adjusted (more on this below).

Intestate succession:

• The intestate heirs are determined by the so-called “parentelic system”. There are three parentelas: the first parentela includes the descendants of the deceased person (children, grandchildren, etc.), the second one includes the parents with their descendants and the third one includes the grandparents with their descendants. More distant parentelas are not entitled to inherit. If the deceased leaves one heir of a closer parentela, the relatives of a more distant parentela are excluded from the legal succession. Within the same parentela, the respective heirs inherit equal parts (according to statutory inheritance law, subject to contrary dispositions).
• Surviving spouses and registered partners are also intestate heirs, but they’re not part of a parentela. They must share their claim with members of a possible parentela. How much remains for them depends on who they’re sharing with (art. 462 CC):
  • If they share with members of the first parentela: they receive 50% of the estate
  • If they share with members of the second parentela: they receive 75% of the estate
  • With members of the third parentela, they don’t have to share and receive the entire estate.
• If the deceased leaves no heirs, his/her estate passes to the state authority (art. 466 CC).
• Please note that domestic/unmarried partners are not intestate heirs and therefore have to be favored by testamentary disposition or inheritance contract to receive any participation. If such persons shall be considered as beneficiaries of an estate, the respective tax laws need to be taken into consideration as so-called third parties are taxed at a higher rate in most Swiss cantons whereas intestate heirs can mostly inherit tax free.

Testamentary succession:

• A person is capable of disposing his or her property, if he/she has capacity of judgement and is at least 18 years old (art. 467 et seq. CC). Under Swiss law, the disposal is possible in the form of a testamentary disposition (i.e., a last will) or in the form of a contract of inheritance (art. 498 et seq. CC).
  • Content-wise, the testator has several types of disposition; namely naming of heirs, burdens and conditions, legacies, etc.
  • The testator may make his/her will in the form of a public deed (made by a public official/notary/other authorized person), as a holographic will (must be handwritten by the testator from start to finish, include a date and be signed by the testator) or in oral form (if the testator is not able to use any of the other forms due to extraordinary circumstances; e.g., imminent risk of death).
  • By contract of succession, the testator can commit him- or herself  to bequeath his/her estate or a legacy to the contractual partner or a third party. Testamentary dispositions or gifts that are incompatible with obligations entered into under the contract of succession are subject to challenge. The testator may also conclude an inheritance renunciation contract with an heir with or without valuable consideration (art. 494 et seq. CC).
• The extent of the ability of disposal depends on whether the testator leaves descendants, parents, a spouse/registered partner or not. If not, the testator may dispose of his/her entire property by testamentary disposition. If he/she does bequeath any of the mentioned, the so-called compulsory portions must be observed.
• Under the forced heirship principle, the compulsory portion is a quota of the statutory hereditary title, i.e., a “minimum” in which the testator may not intervene (art. 470 et seq. CC). This rate is an important component of the revision as of 1 January 2023 (see the changes in the table below).

• If the testator has exceeded his/her testamentary freedom, those heirs who don’t receive the full value of their compulsory portion may sue to have the disposition abated to the permitted amount. However, if no such claims are asserted, the testamentary disposition is principally valid despite these violations.
  • During his or her lifetime, a person is generally free to dispose of his or her assets; he or she may also make gifts or other free disposals of assets. However, if such pecuniary advantages are granted to intestate heirs, they are subject to a legal equalization (art. 626 et seq. CC). The law contains different rules depending on the category of heirs as to what the heirs must deduct from their share of the inheritance.
• If an interested heir or legatee has the apprehension that the deceased may have lacked testamentary capacity or the testamentary disposition may be a product of lack of free will or its content/a condition attached to it may be immoral or unlawful, he/she has the possibility to bring an action of declaration of invalidity before court (art. 519 et seq. CC).

Please note that, while there is no federal inheritance tax, most cantons claim an inheritance tax. However, spouses and direct descendants are often exempted from it.

Lex Koller restricts the acquisition of real estate in Switzerland by foreign nationals and by foreign companies. With regard to natural persons, this means that Swiss citizens, regardless of whether they live in Switzerland or abroad or whether they are double citizens, are not covered by the scope of application of the Lex Koller and can therefore acquire Swiss real estate without any limitations. In addition, EU and EFTA citizens who are legally and actually resident in Switzerland, as well as citizens of other foreign countries who are actually resident in Switzerland and hold a valid C residence permit, are not considered to be persons abroad. They can therefore also acquire real estate in Switzerland without restrictions. On the other hand, any foreigner who does not meet the requirements mentioned is considered a person abroad.

Legal entities may also qualify as a person abroad within the meaning of Lex Koller and thus be subject to the authorization requirement. Legal entities having their legal seat abroad are always considered persons abroad and are thus subject to the authorization requirement. However, companies domiciled in Switzerland may qualify as a person abroad if they are controlled by a person abroad. This is the case if a person abroad can decisively influence the administration or management of the company - either alone or together with other persons abroad - due to his or her financial interest, voting rights or for other reasons. Thus, Lex Koller cannot be circumvented by indirectly acquiring real estate through a Swiss company.

Another exception concerns business premises. Premises that serve a commercial purpose can be acquired by persons abroad without authorization. However, the use of real estate for residential or rental purposes does not constitute a commercial purpose within the meaning of Lex Koller.

There are further exceptions for legal inheritors, certain relatives, spouses, purchasers who already have co-ownership or full ownership of the property, condominium owners for the exchange of their units in the same property and EU and EFTA cross-border workers for a second home in the region of their place of work.

The acquisition of shares in a real estate company which is listed on a Swiss stock exchange is not subject to Lex Koller legislation. However, the acquisition of shares in real estate companies which are not listed on a Swiss stock exchange and whose purpose is to acquire or hold residential real estate or other real estate which is not used for business purposes is not permitted for persons abroad. The percentage of real estate held by the company which requires authorization compared to the remaining assets of the company is a key factor in this regard. Since there is no specific threshold value, a detailed analysis must be made in each individual case. However, authorization is most likely to be required for residential real estate percentages ranging from 10 to 20 percent.

Finally, in some cantons, the purchase of holiday apartments is exempt from the authorization requirement. These cantons are Appenzell Ausserrhoden, Bern, Freiburg, Glarus, Grisons, Jura, Lucerne, Neuchâtel, Nidwalden, Obwalden, St. Gallen, Schaffhausen, Schwyz, Ticino, Uri, Vaud and Valais. There are, however, threshold values for area sizes: the plot must be less than 1,000 square meters and the net living area less than 200 square meters in size. Living area is defined as all habitable and heated rooms including saunas, swimming pools and hobby rooms but not balconies, cellars and attics. The acquisition of holiday apartments by persons abroad is subject to a quota which applies for the whole of Switzerland. Only approximately 1,500 holiday apartments a year may be sold to foreign nationals who are not resident in Switzerland, whereby the number of apartments available in each canton varies significantly.

To me, as a born and raised Basler, this city truly is my hometown. I love the mix of the city – it’s big enough that you can basically find whatever you need, but small enough that it doesn’t feel like a huge city (with less than 200,000 inhabitants, it truly isn’t). Beautiful spots to visit include Münsterplatz on an elevated spot in Basel with the beautiful Basler Münster and the adjacent Pfalz – a scenic spot with a lovely view all over Kleinbasel. Being a father of three myself, Basel is also a great place for children and families. Some of the best playgrounds for children are located at Kannenfeldpark and Johanniterpark. The latter features a huge goose to climb whose neck is a slide going to the ground. Basel is also well known for its wide variety of museums, be it classic or modern art, museum of natural art, or a museum dedicated to the kinetic art of Jean Tinguely. He created probably the most well-known fountain in Basel – the Fasnachtsbrunnen, which most people just call the Tinguelybrunnen. In the old part of the town, you can also find the smallest museum in Basel – it’s housed in a door and only contains items that fit in a Hoosesagg, a trouser pocket.

Patrick Businger (Senior Manager, Tax)

There are many enjoyable aspects of living in Basel, but one of the highlights is the Rhine river and its bank on the Kleinbasel side. No matter what time of the year, it is always worth going for a stroll along the river. For some it serves as a jogging route with a great view all year round and for others it is a place to go and just sit to enjoy the view. For everyone in Basel, however, it is a place that they call home. In the warmer months, you can swim down the Rhine from Eisenbahnbrücke all the way to Dreirosenbrücke. All along that path, you will find stands offering food and drinks, as well as the popular swimming bags that help you keep your things dry on your swim. If you keep walking along the riverbank, you will eventually get to the port area that has been transformed into an alternative space with quirky bars and a free-spirited ambiance. A must for all that enjoy a good time.

Edwin Trynes (Assistant Manager)

As capital of Switzerland and UNESCO world heritage, Bern has a lot to offer apart from the buildings and monuments known from travel guides such as the Münster, Zytgloggeturm, Bundeshaus and the Gerechtigkeitsbrunnen.

To really get to know Bern, you have to have experienced at least one cup of coffee, a beer or any other refreshment in or at the end of the old town. There, you may have a view of the longest river in Switzerland, the Aare, and the bears in the bear park, or have a swim in the Aare and an aperitif in one of the many pop-ups that can be found along the riverbank inviting you to linger, while at the same time you may enjoy the wonderful mountain view. “Lädele” (Shopping) under the arcades in the old town of Bern is also always an experience regardless of weather conditions or season.

In summer, people like to meet in one of the famous azure blue river baths (Marzili, Lorraine, Muri, Eichholz) and treat themselves to an ice cream from one of the absolutely delicious ice cream parlors of the city.

At Christmas time, the Sternenmarkt (“star market”, a well-known Christmas market) on the “kleinen Schanze” (small viewing platform) is also highly recommended. There you will find lovingly designed huts with many sustainable and local products.

Marc Philipp Gugger (Director, Employment Law)