The national foreigner law and the question how to get a residence and work permit in Switzerland could be difficult to understand for interested citizens of the European Union / EFTA or for citizens of so-called third countries (EU / EFTA-Non Member State) in several aspects.

With this summary we will give you a short overview of the requirements and possibilities to get a residence and/or work permit in Switzerland for third country nationals, (for example people from USA, Australia, Russia, Asian countries, South America, Africa, Iran, Arab countries etc.). In Switzerland, the requirements for people from third countries to get a residence and work permit are very strict. The applicants must be highly qualified and be able to proof such high qualification and specialized education (university diploma, diploma or certificate of advanced studies, etc.).

We would like to point out, that this summary gives only a brief overview of the fundamental possibilities. It is not a complete presentation of the entire legal situation and all residence and work permit possibilities that Switzerland provides. This overview is based on the current situation, nevertheless, it is necessary to check the detailed requirements for each client separately on an individual case-by-case basis as the requirements may change over time.

Option 1: Residence permit without employment in Switzerland

I. Residence permit with flat-rate taxation

For high net-worth individuals, it might be interesting to live in Switzerland and being taxed on a flat-rate model without working. This option is only possible in a few cantons of Switzerland. The Canton of Zurich for example does not offer this model. The flat-rate taxation is one way to optimize the taxation as foreign national. With this option, the taxes are not calculated based on the actual income and assets, but on the effective living costs of the taxpayer. This solution is only possible for private persons, not for legal entities. The applicant has to fulfil the following requirements: no employment in Switzerland within the last 10 years, no employment in the future and first stay in Switzerland under fiscal law. The basis for the flat-rate taxation is the assessable income: 7-fold annual rent of a house or apartment or 3-fold annual pension price for accommodation and meals and the living costs of the foreign person. A flat-rate taxation is appropriate for individuals who have an income of more than CHF 400’000.00 p.a. and assets of more then CHF 8’000’000.00 (depending on the canton). It is possible to check in advance with the respective tax authorities and have a tax ruling. As mentioned before, the applicant is not allowed to work in Switzerland. Nevertheless, it is possible for him/her to work in a foreign country and/or to have board of directors mandates in Switzerland under the condition that the board of directors remuneration is held very low.

II. Residence as pensioner (also cumulative with flat-rate taxation)

Another possibility to get a residence permit in Switzerland without employment exists for pensioners. The requirements are as follows: a minimum age of 55, a specific and personally substantial connection to Switzerland (ancestors with Swiss nationality; close relationship to close relatives like parents, children, grandchildren, brothers and sisters; longer period of a former residence in Switzerland like education, vacations) and no employment in neither Switzerland nor other foreign countries. The applicant must have enough earnings and assets to carry the higher living costs in Switzerland.

Option 2: Residence permit with employed or self-employed activity in Switzerland

I. Intercompany / intragroup transfer of a person in a company with a branch office in Switzerland

“Intercompany or intragroup transfer” means: an international group of affiliated companies shall transfer a person in a higher management position, who has been working longer than 12 months for one of the affiliated companies, to the affiliated company in Switzerland. As requirement, the transferred person must be highly qualified and specialized. Furthermore, the company group must declare an important economic reason, why exactly this employee shall be transferred to Switzerland. Additionally, it is important to show that the transfer of a third country national will bring a great profit for the Swiss economy. Especially, if this option 2 no. I will be combined with the below mentioned option 2 no. II, the latter is the most important requirement for the responsible office of economy and labour in Switzerland. The work and residence permit based on an intragroup transfer will be limited to a 4-5 years stay in Switzerland.

II. Founder and executive manager for setting-up of a company in Switzerland

It is possible to combine option 2 no. I with this option 2 no. II.
This solution is possible for people which plan to found a new Swiss entity and will be a member of the higher management of the company. The applicant must be a highly qualified specialist. A detailed business plan of the new Swiss company for the next 3 years with details about the planned company organisation, human resources development, financial aspects (budget, expenses, income, benefits-cost-ratio) and information about the industry-sector-specific marketplace as well as further information about the planned company projects and the activities and importance of the applicant in the company is required.
It is of outmost importance, to explain in detail to the responsible office of economy and labour in Switzerland, why the new company and the foreign employee or founder will be so essential for the Swiss economy.

Some of these important reasons are:

• To open up new markets
• To secure economically important relations with foreign countries
• To protect export volume
• To found a company or to plan the extension of an existing company and create new jobs for employees in Switzerland

III. Highly qualified specialist for an existing Swiss company

Highly qualified specialists from third countries can try to apply for a work and residence permit in Switzerland, if an existing Swiss company needs an employee with this special qualification being offered by the applicant. The company in Switzerland which wants to hire the applicant, has to proof that they made a widely spread job advertisement over a longer period of time in Switzerland and the European Union / EFTA countries according to the following prediscribed procedure:

• First of all, the company has to make a job advertisement in Switzerland; if they can’t find any appropriate Swiss employee,
• the company has secondly to make a job advertisement in the whole European Union / EFTA countries, if they still don’t find any appropriate employee in the EU / EFTA area,
• they are eventually allowed to search for an employee in all other countries worldwide

 

Interested to know more? The HütteLAW team will be happy to advise you.

Author: Cornelia Arnold / 10. Feb. 2017, 16:32