International Work Arrangements

Selecting the Right Structure for International Work in Switzerland

We assist clients in understanding and choosing the right legal and tax structures for their international employment in Switzerland. We provide comprehensive assistance in navigating international employment options, including direct or indirect employment model like ANobAG and EU-employments, self-employment registrations, and setting up subsidiaries and company branches. Our services are designed to cater to a diverse range of legal and tax needs for working in Switzerland. Tailored to your unique circumstances, our expertise ensures you make the most informed decision for a smooth and compliant professional experience in Switzerland.

A Simple Process Providing Clarity

  1. Non-binding call to discuss your case
  2. Summary email with key applicable factors and our offer
  3. Salary projections and onboarding
  4. Signing of insurance offers and registration forms
  5. Start of ongoing payroll

Our Solutions at a Glance

EU-Employments

This structure is for EU/EFTA nationals working in Switzerland with employers based in the EU/EFTA. It uniquely allows direct access to the Swiss social security system and allows with a Swiss representative allows for a smooth implementation in the company’s payroll.

ANobAG

A status for non-EU nationals with an EU/EFTA or non-EU/EFTA based employer or EU nationals with a non-EU/EFTA based employer. Employees handle their social security contributions independently, as the employer cannot get accessed.

Business Ownership

This option lets workers create a Swiss business entity for invoicing services to foreign clients, unlocking comprehensive tax planning on higher income levels while being obligated to stick to Swiss accounting and reporting rules.

Subsidiary / Branch

A subsidiary is a viable option for foreign companies to hire locally, requiring a Swiss LLC or Ltd as a perfect fit for growth. While a branch in Switzerland is an extension of a foreign company, managing administrative functions in Switzerland but not being a separate legal entity, handling payroll and social security tasks.

Want to dive deeper into the different structures?

Our table below provides a comprehensive comparison to help you understand the options available. If you’re looking for more context, don’t hesitate to read our published Guide to International Work Arrangements to learn more.

ConstructEU-Direct-EmploymentEU-Direct-Employment with Art. 21ANobAG with EU employerANobAG with third state employerEmployer on Record (EOR)Business ownershipSwiss BranchSwiss Subsidiary
CharacteristicsEmployee living and working in CH
Employee is EU/EFTA national
Employer in EU/EFTA domiciled
Employer gets directly accessed to CH social security
Employer appoints third party in CH as representative
Employee living and working in CH
Employee is EU/EFTA national
Employer in EU/EFTA domiciled
Employer gets directly accessed to CH social security
Employer appoints employee as representative
Employee living and working in CH
Employee is third state national
Employer is domiciled in EU/EFTA
Employer cannot get accessed to the social security system
Employee must get accessed due to residence

Employee living and working in CH
Employee is either EU/EFTA or third state national
Employer in domiciled in third state
Employer cannot get accessed to the social security system
Employee must get accessed due to residence
Worker gets employed by Swiss company (EOR)
EOR ‘leases’ services of worker out to factual employer abroad
Workers social security situation and administration is equal to ‘regular’ Swiss employment
Worker establishes LLC/Ltd
Hires him-/herself from own company
Social security admin works via company
Employer creates branch in Switzerland
Branch has no legal personality but can take care of administration for the employer abroad
Employee is employed by company abroad, not the branch
Employer creates subsidiary in Switzerland
Subsidiary has legal personality and employs employee in Switzerland
Role TaxolutionRepresentation in CH on behalf of Employer
Conducting Payroll Work (could entail direct Communication with Employee)
Service Agreement with Employer
Assistance of employee’s Tasks under their Art. 21 obligations
Conducting Payroll Work (could entail direct Communication with Employee)
Client is Employee (likely)
Assisting Employee with their Social Security Obligations
Conducting Payroll Work (could entail direct Communication with Employee)
Client can be either, Employer or Employee
Assisting Employee with their Social Security Obligations
Client can be either, Employer or Employee
Conducting Payroll Work (could entail direct communication with employee)
No role – Taxolution does not offer EOR services but can recommend providersIncorporation
Accounting
Payroll
Registration of Branch
Registration with Social Security Office
Payroll Services
Optional: Help with Implementation of Payroll Accounting in the Accounts of the Foreign Company
Incorporation
Accounting
Payroll
Engagement TypeDirectDirectDirectDirectIndirectIndirectDirectDirect with Subsidiary
Indirect with Parent Company
Contact and Legal Relationship is with Subsidiary
Payment FlowsEmployer – EmployeeEmployer – EmployeeEmployer – EmployeeEmployer – EmployeeEmployer – EOR – EmployeeEmployer – Business – EmployeeEmployer (abroad) – EmployeeParent Company – Subsidiary – Employee
Foreign WorkdaysYesYesYesYesNoNoYesNo
Legal BasisAHVG + EU 987/2009AHVG + EU 987/2009 (+ Art. 21)AHVG (Art. 6) + TreatyAHVG (Art. 6) + TreatyAHVG-StandardAHVG-StandardAHVG (bes. Art. 12 Abs. 2)EU / EFTA / third state no differenceAHVG-Standard
RequirementYes – minimum of 25% in CH Yes – minimum of 25% in CH Yes, depending on treaty Yes, depending on treaty No RiskNo RiskNo RiskNo Risk
Contribution BasisAgreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer ContributionsAgreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer ContributionsPaid Salary = Gross SalaryPaid Salary = Gross SalaryAgreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – EOR Fee – Employer ContributionsAgreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer ContributionsAgreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer ContributionsAgreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer Contributions
Pension FundMandatoryMandatoryMandatoryVoluntary but not offered by insurancesMandatoryMandatoryMandatoryMandatory
Withholding Tax (B Permit)No, tax return filing obligation regardless of income thresholdNo, tax return filing obligation regardless of income thresholdNo, tax return filing obligation regardless of income thresholdNo, tax return filing obligation regardless of income thresholdYesYesYesYes