Swiss Law for Expatriates: Essential Guide

Residence Permit

EU/EFTA: AFMP applies. Employment contract suffices for B (5 years) or L permit. Non-economically active: sufficient means and health insurance. Third-country: stricter; quota-subject work permits, priority for local workers (art. 21 FNIA), qualifications required (art. 23 FNIA).

Municipal registration: must register within 14 days of arrival (art. 12 Register Harmonisation Act).

Taxation

Withholding Tax

B permit holders (not C) are in principle taxed at source (art. 83 et seq. DFTA). Tax deducted directly by employer. Rates vary by canton, civil status and children. Above CHF 120,000 gross annual income: may request ordinary subsequent assessment (art. 89 para. 1bis DFTA).

Double Tax Treaties

Switzerland has treaties with 100+ countries. Verify applicable treaty to avoid double taxation.

Lump-Sum Taxation

For foreigners settling without economic activity, some cantons offer expenditure-based taxation (art. 14 DFTA). Subject to strict conditions.

Social Insurance

Health insurance (HIA): mandatory within three months. Retroactive to arrival date. Compare premiums. AVS/DI (1st pillar): all workers contribute. Foreign contribution periods counted via bilateral agreements. Occupational pension (2nd pillar): employees mandatorily affiliated. On departure: vested benefits may be transferred to a home-country institution; for EU/EFTA remaining in the EU, the mandatory LPP portion cannot be paid in cash.

Employment Law

Swiss employment law applies to all workers in Switzerland regardless of nationality (art. 319 et seq. CO). Key: no particular form for contracts (art. 320 CO), 45h/week maximum for office workers (art. 9 EA), four weeks minimum holidays (art. 329a CO), notice periods vary by seniority (art. 335c CO).

Cantonal Particularities

Tax rates, health insurance premiums, school system, social welfare and official language all vary by canton. Canton of residence choice has significant financial and practical consequences.

Dual Nationality and Military Service

Switzerland permits dual nationality. Swiss dual nationals are subject to military/civil service obligations. Foreign nationals are not subject to Swiss military service.