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
Our transparent consultation process ensures that you can confidently navigate your situation:
- Non-binding call to discuss your case
- Summary email with key applicable factors and our offer
- Salary projections and onboarding
- Signing of insurance offers and registration forms
- 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.
| Construct | EU-Direct-Employment | EU-Direct-Employment with Art. 21 | ANobAG with EU employer | ANobAG with third state employer | Employer on Record (EOR) | Business ownership | Swiss Branch | Swiss Subsidiary |
|---|---|---|---|---|---|---|---|---|
| Characteristics | 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 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 Taxolution | Representation 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 providers | Incorporation 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 Type | Direct | Direct | Direct | Direct | Indirect | Indirect | Direct | Direct with Subsidiary Indirect with Parent Company Contact and Legal Relationship is with Subsidiary |
| Payment Flows | Employer – Employee | Employer – Employee | Employer – Employee | Employer – Employee | Employer – EOR – Employee | Employer – Business – Employee | Employer (abroad) – Employee | Parent Company – Subsidiary – Employee |
| Foreign Workdays | Yes | Yes | Yes | Yes | No | No | Yes | No |
| Legal Basis | AHVG + EU 987/2009 | AHVG + EU 987/2009 (+ Art. 21) | AHVG (Art. 6) + Treaty | AHVG (Art. 6) + Treaty | AHVG-Standard | AHVG-Standard | AHVG (bes. Art. 12 Abs. 2)EU / EFTA / third state no difference | AHVG-Standard |
| Requirement | Yes – minimum of 25% in CH | Yes – minimum of 25% in CH | Yes, depending on treaty | Yes, depending on treaty | No Risk | No Risk | No Risk | No Risk |
| Contribution Basis | Agreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer Contributions | Agreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer Contributions | Paid Salary = Gross Salary | Paid Salary = Gross Salary | Agreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – EOR Fee – Employer Contributions | Agreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer Contributions | Agreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer Contributions | Agreed Gross Salary /Net Salary + Employee Contributions /Employer Costs – Employer Contributions |
| Pension Fund | Mandatory | Mandatory | Mandatory | Voluntary but not offered by insurances | Mandatory | Mandatory | Mandatory | Mandatory |
| Withholding Tax (B Permit) | No, tax return filing obligation regardless of income threshold | No, tax return filing obligation regardless of income threshold | No, tax return filing obligation regardless of income threshold | No, tax return filing obligation regardless of income threshold | Yes | Yes | Yes | Yes |