Switzerland Update: Work and residence permits for EU and EFTA citizens

Low tax rates, a stable economic situation, one of the world’s highest wage levels, a good school system and great security attract numerous foreign workers to Switzerland every year in the short or long term. Depending on the respective circumstances, however, different requirements apply to employers and employees.

Thanks to the Agreement on the Free Movement of Persons (AFMP), EU and EFTA nationals enjoy the right to reside and pursue an employed or self-employed activity in Switzerland. Although the conditions for nationals of the AFMP states are considerably easier compared to those from third countries, a residence permit is usually still required. This then also acts as a work permit.

Residence with employment relationship

If the duration of the employment relationship does not exceed three months, employees from EU or EFTA countries can do without work or residence permits. Instead, the employer is required to register the employment relationship with the competent cantonal authority by means of an online registration procedure before commencing. So it is a pure report and not a permit. However, the 90 days per calendar year apply to the employer and not to the individual employee. On the other hand, special features apply to jobs of less than eight days and also to certain industries.

If an EU/EFTA citizen works in Switzerland for three months or more, he or she needs a work permit. In principle, he has a legal right to have a work permit issued if he works for a Swiss employer and no criminal convictions make a permit impossible. The procedure is very simple: the foreigner must register with the competent residents’ registration office of the place of residence within 14 days of entering Switzerland. However, he is allowed to work in Switzerland from day one. When registering, a copy of the passport and a copy of the employment contract must be presented. He also has to prove his place of residence (e.g. copy of the rental contract).

For activities between three and twelve months, a short-term residence permit (L EU/EFTA permit) must be obtained. This applies for the duration of employment and throughout Switzerland. During this time, the work, the employer or the place of work can thus be changed freely. Extensions of up to one year each are possible.

If the employment certificate has a duration of more than one year or indefinite period, a residence permit (B EU/EFTA card) is issued instead. It is valid for five years, after which it can be extended by a further five years or, in the case of prolonged involuntary unemployment, only by one year.

After five years of regular residence, citizens of the EU-15/EFTA states can apply for a settlement permit (C EU/EFTA card), which in turn entitles them to unconditional, permanent residence in Switzerland. Since the withdrawal of the United Kingdom from the EU, however, this privilege no longer arises by virtue of the AFMP, but by the Services Mobility Agreement (SMA), which is initially limited to the end of 2022. In the absence of mutual agreements with the other EU states, a stay of ten years is generally required for those citizens.

Self-employment

Self-employed persons are required to apply for a residence permit within two weeks of arrival at the municipality of residence. In doing so, they must be able to prove that they are or will engage in a self-employed activity whose income is sufficient to cover their livelihood (e.g. through business books). You will then already receive the B card, which is limited to five years.

Frontier worker

Finally, it is also possible to work in Switzerland without giving up residence abroad. However, in order to be considered a cross-border commuter, you must return abroad at least weekly. In any case, a cross-border commuter permit (G EU/EFTA permit) is required. Similar to the L and B cards, these are issued – depending on the duration of the proven employment relationship – for the duration of the activity, or (in the case of a relationship lasting more than one year or for a longer period of time) for five years. The same applies to the extension options.

Self-employed cross-border commuters, in turn, receive a G card limited to five years.

By Vischer, Switzerland, a Transatlantic Law International Affiliated Firm.

For further information or for any assistance please contact switzerland@transatlanticlaw.com

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