LIVING AND

WORKING
IN SWITZERLAND

hays.ch
YOU ARE IMPORTANT TO US
Modern-day Switzerland Why to choose Hays as a partner
Chocolate, watches, cheese, neutrality, tax With a global turnover of approx. CHF se-
paradise or just beautiful landscapes: these ven billion and more than 260 offices in 33
are probably the main characteristics that countries, Hays is not only highly professio-
come to people’s minds when they think of nal and rich in experience but also the world-
Switzerland. But modern Switzerland is more wide leader in specialist recruitment.
than just cliché. Today, according to a study
of the Word Economic Forum conducted in We have been operating successfully in the
September 2019, Switzerland is fifth most contract types Permanent and Contracting/
competitive economy in the world, ETH Zu- Temp in Switzerland since 1999. The number
rich is the university with the most Nobel of customers who entrust us with the suc-
Prize winners per capita, was found in the cessful staffing of international positions is
Mercer study to have three cities ranging increasing steadily and has reached a three-
among the top ten cities with the best qua- digit number by now.
lity of life worldwide (Zurich, Basel, Geneva)
and is, right after Japan, the country with the We not only work with major businesses and
highest life expectancy in the world. It is, ho- market leaders in their respective sectors:
wever, also known for its high rents and real apart from the most renowned companies of
estate prices as well as the high living costs. the Swiss economy, we also cooperate with
successful niche players and emerging com-
panies who tap into their experience on the
Answers to your questions Current sources national or international market.

You surely have questions regarding formal- Drawing on our many years of experience We would also be happy to help you perso-
ities, information gathering or simply the life in placing foreign candidates in positions in nally with any questions you may have. Plea-
in Switzerland. We would like to give you the Switzerland, this brochure (revised in March se get in touch with your Hays contact or ask
answers to the most important questions on 2021) is meant to give you an overview of the for the responsible department manager.
the following pages. We will show you why most important topics.
you can live very well in Switzerland despi- We hope you enjoy reading this brochure
te the higher living costs, inform you about In addition to information from the relevant and are looking forward to a successful co-
the three pillars of the pension scheme and federal offices, we also used the well-known operation with you!
why buying real estate can pay off quickly study on the quality of life in cities worldwide
even in times of high real estate prices and conducted by the British company Mercer or
finally explain how pension scheme and real the internationally recognised index “Prices
estate financing fit together. Thus, you will be and Earnings” of the major bank UBS as
well-prepared to take your next career step sources.
in Switzerland, even if you stay longer than
planned.
TABLE OF CONTENTS

The country and its citizens 04

Work and residence permit 07

Social insurance and taxes 09

Relocation to Switzerland 14

Transport 17

Living in Switzerland 18

Miscellaneous 21

Legal notice
Our publication is for information purposes only. No rights can be derived from it. Although we take great care
to ensure that our information is correct, we cannot guarantee its accuracy, reliability or completeness. The con-
tent of this publication is subject to change without notice. We assume no liability for the content and services
offered on the listed websites. Visiting these pages is at the user’s own risk.

Currency
The exchange rate applied in this document is 1.10
EUR 1 = CHF 1.10 (March 2021)

Copyright: 2021, Hays Switzerland

THE COUNTRY
AND ITS CITIZENS
Geography
Switzerland is located in the central Alpine of Western Europe and sometimes the cold
region of Europe, with Italy to the south, Aus- continental climate of Eastern Europe. Large
tria and Liechtenstein to the east, Germany parts of the country lie in the subalpine zone
to the north and France to the west. Being that is characterised by forests and snow.
a landlocked country, Switzerland has no di-
rect access to the sea. The total area is about Both the northern subalpine zones and the
41,300 km². Geneva region are sometimes influenced by
the foehn wind.
The Alps, located in the south of the country,
reach heights of more than 4,000 m (highest Minimum and maximum temperatures du-
point: Dufour Peak 4,634 m). The Jura Moun- ring the day normally between -4°C and 1°C
tains extend from the west to the north of in January and between 14°C and 28°C in
the country. Between the Alps and the Jura July.
lies the hilly but densely populated central
plateau.

Due to its location in the Alps, near the Gott-

hard, Furka and Oberalp passes, Switzerland
is the source of many major European rivers
such as the Rhine, Rhône, Inn and Ticino (Po).
Thanks to its central location in Europe in the
middle of the Alpine massif, Switzerland is
considered a travel and transit country.

Climate
Switzerland is located in the northern part of
the temperature zone and influenced by the
Gulf Stream. Despite its small overall size, it
has notable differences in climate. The Alpine
chain, stretching from east to west, forms an
important climate boundary.

South to the Alps there is a mild Mediterra-

nean climate, whereas the north is influenced
by the relatively consistent maritime climate
 The country and its citizens

History
Switzerland has its origins in the “Rütli- the parliament. The parliament elects the
schwur” of 1291, a legendary oath of the seven members of the government (Fede-
Swiss Confederacy, which resulted in the ral Council). The legislature consists of two
foundation of the first three cantons Uri, equal chambers – the Council of States (46
Schwyz and Unterwalden by the Swiss members) and the National Council (200
Confederacy. After the victorious battle of members). The Federal Supreme Court is
Morgarten against the Habsburgs in 1315, elected by the legislature. The following
more cities and regions were added to the four parties form a so-called concordance-
confederacy: Lucerne in 1332, Zurich in 1351, democratic government and are thus regu-
Glarus and Zug in 1352 and Bern in 1353. larly represented together in the Federal
Those eight “old” cantons became the core Council: The Swiss People’s Party, the Soci-
of the Swiss Confederacy. In 1499, the Swiss al Democrats, the Free Democratic Party of
Image: Switzerland Confederacy separated from the German Switzerland and the Christian Democratic
(Source: Federal Statistical Office) kingdom, but this was only officially accep- People‘s Party of Switzerland (ordered by
ted after the Peace of Westphalia in 1648. size).
Gradually, more and more territories were
added to the confederacy. A major civil war Each canton has its own constitution, par-
Table: Average temperature and rainfall values was followed by the transition from an alli- liament, government and courts. There are
ance of states to a federal state. In 1848, the about 2,900 communities in Switzerland
City January (C°) July (C°) Rainfall voters adopted a new constitution and Bern which also have a certain degree of autono-
became the capital of the country. my, for example in terms of taxes.
Basel 0.9 18.5 778 mm Today, Switzerland consists of 26 cantons. The highest judicial authority is the Federal
In 1992, the Swiss citizens rejected partici- Supreme Court in Lausanne.
Bern 1.0 17.5 1‘028 mm pation in the EEA by referendum. Switzer-
land became a full member of the United
Geneva 1.0 19.3 822 mm Nations in 2002 and a member of Schen-
gen in 2008, yet it is still not a member of
the EU.
Lugano 2.6 21.1 1‘545 mm
Government
Luzern 2.0 17.9 1‘171 mm
The constitution stipulates that Switzerland
Sion 0.8 19.1 598 mm guarantees the exercise of political rights in
the form of a direct, federal democracy. The
Swiss constitution grants the Swiss citizens
Zurich 0.5 17.6 1‘086 mm sovereignty, for example with regard to the
highest political power and the election of
The country and its citizens The country and its citizens

Population Languages
At the end of 2019, the permanent resident Europeans form the largest group of foreign From a linguistic point of view, Switzerland in Ticino and some southern valleys of the
population of Switzerland was 8’606’033, nationalities. is a special case with its four official langua- canton of Graubünden in addition to Italian.
25% of which were of foreign nationality. The ges German, French, Italian and Romansh.
medium density is approximately 215 citizens Table: Number of permanent foreign resi- About 70% of the citizens speak Swiss-Ger- Religion
per km². Zurich and Bern are the most po- dents by nationality man (mainly in the north-western, central
pulous cantons. Geneva, Basel and Zurich are (Source: Federal Statistical Office) and eastern parts of the country), 20% The principle of freedom of religion and be-
the most densely populated cities. French (in the west) and 7% Italian (south of lief prevails in Switzerland. The main religi-
25 the Alps). Romansh is only spoken in a few ons are Catholic (about 40% of the popu-
Table: the biggest Swiss cities valleys in the canton of Graubünden. lation) and Protestant (approx. 36% of the
(Source: Federal Statistical Office) 20 population). More than 20% state that they
15 Standard German is the official written lan- have no religious conviction and about 4%
City Citizens guage in German-speaking Switzerland, (mainly immigrants) believe in Islam.
10
whereas many dialects are spoken in ever-
Zürich 415‘367 5 yday life. Local Lombard dialects are spoken (Source: Federal Statistical Office)
0
Genf 201‘818

Basel 172‘258

Lausanne 139‘111
WORK AND Work and residence permit

RESIDENCE PERMIT Table: Transitional arrangements

(Source: https://www.eda.admin.ch/)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Switzerland has bilateral agreements with red for registration and application for the

(+Malta/Cyprus)
the 27 EU and EFTA states regarding the work permit, which vary depending on the
A B C

EU-15
complete free movement of persons. These place of residence. Most cantons require you
agreements have been continuously expan- to present yourself in person at the munici-
ded in recent years and apply to the Swiss pality of residence in order to register, and
labour market, taking into account certain this usually involves a registration fee.

(Entry: 2004)
transitional periods. Today, nationals of most A B C

EU-8
EU and EFTA states (Norway, Iceland, Liech- As soon as the documents have been sub-
tenstein) are entitled to a work or residence mitted in full and checked, some authorities
permit with a valid employment contract. issue a confirmation of registration and the

(Entry: 2007)
permit is issued within the cantonal deadline,

BG / RO
For employment of less than three months, usually within 4 to 6 weeks. A B C
the commencement of employment is only
subject to notification and requires the em- EU/EFTA nationals are entitled to change
ployer to notify the authorities (notification their place of residence as well as their em-

(Entry: 2013)
Croatia
procedure). Should the employment last lon- ployer freely. A B C
ger than three months, the application for a
work permit to the authorities is required. Short-term permit L
(with gainful employment)
Procedure A
Restricted freedom of movement (priority for nationals, prior control of salary and employment conditions
quota for seven years, after implementation of transitional arrangements)
The validity of this permit is determined by
In general, HAYS as an employer largely sup- the length of the employment contract. It B Full freedom of movement, but safeguard clause for three years
ports its employees as far as possible in ap- is issued for a maximum period of twelve
plying for work and residence permits and months and is valid for persons with a fixed- C Full freedom of movement
also extends them if the cantonal conditions term employment contract.
allow. In certain cases, HAYS also assumes
the permit costs for external employees and The permit can be extended as long as a va- Cross-border commuter permit G Swiss address, you must register this with
supports clients and candidates for perma- lid employment relationship can be proven. your municipality of residence.
nent positions in an advisory capacity. Accordingly, this is the most common form Cross-border commuters are foreign natio-
of residence permit in Switzerland for tem- nals who have their main residence in one The application for the cross-border com-
Applying for a work and residence permit porary workers. of the EU/EFTA states and are gainfully em- muter permit is made by the employer in
ployed in Switzerland. Cross-border com- cooperation with the employee. The cross-
You register directly with your municipality muters are obliged to return to their domi- border commuter permit is linked to the
of residence within the time limit set by the cile abroad at least once a week (in the case current employer and must be changed ac-
municipality and before taking up gainful of a weekly stay in Switzerland) or once a cordingly by the employer if the employee
employment. Certain documents are requi- day. If you are staying during the week at a changes jobs.
Work and residence permit

Residence permit B Family reunion

EU/EFTA nationals
This residence permit is issued to persons
who have an unlimited employment con- The Agreement on the Free Movement of
tract. It is valid for up to five years and can Persons between Switzerland and the EU
be extended after this period. Special regu- provides that EU/EFTA nationals who have
lations must be observed for employment acquired the right of residence in Switzer-
through personnel service providers. land may join their family members.

Settlement permit C In order to apply for a residence permit, the

family members must submit the following
Settled citizens of the EU-27/EFTA states documents among other possible require-
are foreign nationals who have been gran- ments:
ted a settlement permit after a regular and
uninterrupted stay of five to ten years in Valid travel document, official proof from
Switzerland. The right of residence is unres- the home country stating the family rela-
tricted and not subject to conditions. Citi- tionship and, possibly, a visa.
zens of other nations can obtain this permit
after ten years. Non EU/EFTA nationals

Holders of a C permit have the same rights Depending on the authorisation of the main
and obligations as Swiss citizens with two permit holder, the subsequent immigration
exceptions: They do not have the right to of non-EU/EFTA nationals is subject to dif-
vote nor the obligation to perform military ferent provisions.
service.
It is advisable to individually consult the re-
United Kingdom / Brexit spective cantonal authority in order to con-
sult the required documents.
Following the United Kingdom‘s withdrawal
from the European Union (EU) and the end
of the transitional period (31.12.2020), the
Agreement on the Free Movement of Per-
sons (FMPA) will no longer apply.
SOCIAL INSURANCE Social insurance and taxes

AND TAXES
EO: Loss of earnings compensation permit, must have registered with the re-
gional employment centre (RAV) and must
Various salary deductions apply to emp- led to an AHV pension. Early retirement also • Cross-financing compensation for loss prove that they are actively seeking work.
loyees and are automatically initiated and allows you to start drawing your pension one of earnings for persons in military ser-
deducted from the salary before payment. to two years earlier, but this is accompanied vice Due to the agreement on the free move-
Those deductions also apply to most tem- by a pension reduction of 6.8% per year of • Employer and employee both pay 50% ment of persons, contributions made in EU/
porary employees. Under certain conditions, early retirement. Pension payments can also EFTA countries are also considered (totali-
deductions from the BVG, also called pen- be deferred by one to five years, leading to ALV: Unemployment insurance sation). The principle of the totalisation also
sion fund or pillar 2 (see section BVG: occu- an increase of the pension by 5.2% to 31.1%, applies to persons with a short-term permit
pational pensions plan) are an exception. The depending on how many months the pay- • Employer and employee both pay 50% since 1 June 2009.
pension scheme is based on the so-called ment was postponed. Under certain circums- • 1.1% up to the maximum contribution li-
three-pillar system. This system is designed tances, pensioners are entitled to payments mit of CHF 12,350 The unemployment benefit amounts to 70-
to ensure that approx. 80% of the last salary for their children and/or an additional pen- • For salary components above CHF 80% of the average salary of the past six
is paid as a pension and that the standard of sion for their spouse. 148,200, the contribution rate to the months of contribution. If the calculation is
living can thus be maintained. ALV is 1% of the relevant annual salary more favourable, it is based on the average
The spouse who outlives his or her spouse is (unlimited in terms of the upper limit). salary of the last 12 months. Insured persons
The different parts of this system are explai- entitled to a widow’s or widower’s pension The gradation of the contribution rate with dependent children or an unemploy-
ned below. if he or she has one or more children at the applies to each individual employment ment benefit below the minimum amount
time of his or her spouse’s death. The widow relationship receive 80% of the salary to be taken into
Switzerland is known for its low tax rates. is also entitled to a widow’s pension if she is • Unmarried unemployed persons recei- account. Income below CHF 500 and above
To make it even easier for newcomers from childless at the time of the death of her part- ve 70% of the insured salary, married CHF 12,350 is not insured. During the pay-
abroad, the withholding tax was introduced ner, older than 45 and has been married for persons receive 80%. Generally, 400 ment period of two years, a maximum of
which is directly deducted from the salary. at least five years. The pension entitlement daily allowances can be drawn 400 daily allowances (working days) may
Permanent residents (possible from the fifth ceases on remarriage, the death or, in case of • Entitlement to unemployment benefit be received.
year onwards) and employees earning more a widower, when the youngest child turns 18. is renewed after the commencement of
than CHF 120,000 (pro rata temporis) per new employment From the age of 55, a maximum of 520 dai-
year are required to file a tax return once a The children of the deceased spouse are ent- ly allowances applies if contributions have
year. itled to an orphan‘s pension. This right expi- been paid for at least 18 months.
res after the 18th birthday (the 25th if the or- All employees in Switzerland who have not
Social insurance phan is a student) or the death of the orphan. yet reached the retirement age are covered You should report your unemployment as
by the mandatory unemployment insuran- soon as you become aware of it to make
AHV: Old age and survivors‘ insurance IV: Disability insurance ce. The contributions to the unemployment sure that you can apply for the compensa-
insurance are split between the employer tion without restriction. Subsequently you
• Employer and employee both pay 50% and employee. have to report to the regional job centre
• Statutory pension scheme, 1st “pillar” twice a month for a counselling and monito-
• Employer and employee both pay 50% Persons who are older than 18 and have a de- To be eligible for unemployment benefits ring interview. The unemployment benefit is
• General retirement age: 65 y. (m) / 64 gree of disability of at least 40% are entitled the following conditions must be met: Insu- paid by the unemployment insurance fund.
years (f) to disability pension. Recipients are entitled red persons must have worked for at least 12
to a pension for their children, who receive an months within the past two years, they must Further information about the steps to be
Men aged 65 and women aged 64 are entit- orphan‘s pension in the event of their death. be resident in Switzerland, possess a work taken can be obtained when you register.
Social insurance and taxes Social insurance and taxes

BVG: Occupational pensions plan ready insured under pillar 1 and have an in- Pillar 3 Exemption from social security contribu-
come of at least CHF 21,330 per year (last tions for freelancers
• Also known as pension fund or pillar 2 update: 2021). Mandatory insurance begins • Pillar 3 is a private provision for retire-
• Individual retirement pension plan with the commencement of the employ- ment age and is voluntary Freelancers from Germany can use the E101
which, in contrast to pillar 1, is not based ment relationship, at the earliest at the age • All three pillars are meant to amount form to be exempted from social security
on the typical solidarity/contribution of 17. Initially, until the age of 24, only de- to a pension of approx. 80% of the last contributions in Switzerland. It certifies that
principle but is paid based on individual ath and disability are covered. From the age salary the freelancer (and under certain circums-
contributions of 25, additional savings are made for the • Contributions are 100% paid by the em- tances employees/self-employed persons)
• Contributions are between 3.5% and old-age pension. Person groups exempted ployee is subject to the legal regulations of his
9%, depending on the salary, age, gen- from the mandatory pension plan: self-em- • Leads to tax benefits member state and thus must be exempted
der and position at the new employer ployed persons, employees with a tempora- • In case of a relocation to an EU coun- from the legal regulations of his country of
• Employer pay 50% and employee pay ry employment contract of a maximum of try: payment as an additional pension employment (Switzerland).
50% three months, persons working in their own according to the pro rata temporis met-
• Goal of the pension scheme: maintai- agricultural business or persons who are in- hod The form is valid for a maximum of one year
ning the standard of living in old age capacitated to a degree of at least 70% as • Recommended especially for long-term and can be extended for another year using
• Payment: in old age, usually as pensions defined by the disability insurance. Under assignments or settling in Switzerland form E102. However, the form must be filed
or one-time payment certain circumstances, these persons may with the authority of the employment state
• Advance withdrawal: voluntarily insure themselves for a minimum The maximum amount that can be paid in before the end of the first twelve months.
- Relocation to a non-EU country pension. annually is CHF 6,883 in 2021 (CHF 34,416 Further extensions can be obtained at the
- Purchase of real estate for self-employed persons as compensation authorities.
- Self-employment The pension plan of pillar 2 is based on indi- for the missing second pillar). This amount
• Change of employer: the vested bene- vidual savings. The process starts at age 25. is inflation-indexed and changes every two
fits policy stipulates that the entire ac- However, the condition is an annual salary years. Pillar 3 can be deposited in the form
cumulated and interest-bearing assets which is above the entry threshold. The sa- of funds with a bank or insurance company.
must be transferred to a new pension vings process ends once the retirement age To benefit from the tax advantages of the
fund has been reached. The retirement savings 3rd pillar, the amount to be paid in in the
• If you return to your home country wit- accumulated over the years on the indivi- respective year must be credited to the re-
hin one year, about 80% of the accumu- dual account of the insured person serve to spective account by 31st December.
lated pension assets (both the employ- finance the retirement pension. Setting up the 3rd pillar account has two
er’s and employee‘s contribution) will tax saving effects: the taxable income is re-
be paid out duced by the respective sum and the lower
• If your assignment does not last longer taxable income reduces the tax progression
than 3 months, contributions are volun- which ultimately allows the application of a
tary lower tax rate. By the way, the entitlement
to the pension is not waived if the pension
Combined with pillar 1, about 60% of the recipient moves to another EU country. Pil-
previously earned income are to be gene- lar 3 can be paid out on a monthly basis or
rated as a pension income (another 20% as a one-time payment. For detailed infor-
are to be achieved with pillar 3). The BVG mation please contact your bank or insu-
is mandatory for all employees who are al- rance company.
Social insurance and taxes

Withholding tax

• Foreign employees must generally pay 1. In the case of withholding tax, the gross
taxes in Switzerland salary is taxed; but when you file a tax
• To simplify the process for new foreign return, the taxable income (gross less
employees, the withholding tax is auto- all deductions) is relevant
matically deduced from the salary by
the employer (if you are in project via 2. The tax rates thus deviate significantly.
Hays, we deduct the withholding tax) Should you be looking for low-tax can-
• Freelancers pay the Swiss withholding tons and communities in the internet
tax themselves yourself to benefit from the different
• Withholding tax is a mixed index of tax rates, you should by all means use
federal, cantonal and communal taxes the correct tax base with the correct
which already includes all deductions tax rates for your calculations and also
• The underlying withholding tax rate is report the correct additional details
applied to the gross salary such as civil status, children and child
• This results in a tax parity within the allowance to the authorities or do so
same canton immediately when you register. We re-
• The place of residence and canton can commend that you discuss this matter
be chosen freely with your Hays consultant or your new
• The income is taxed in the canton of re- employer’s HR contact, if you are in a
sidence (and not at the job location) permanent employment.
• If the annual income is higher than
CHF 120,000 (pro rata temporis) you
will subsequently receive a tax return
giving you the opportunity to claim all
statutory and effective deductions.

Examples for deductions: General profes-

sional expenses, health insurance, all social
insurances as well as pillar 3, debt interest
etc.

Important: Since the deductions mentioned

are already considered in the withholding
taxes, but must be claimed in the tax return,
there are two things that must be conside-
red:
Social insurance and taxes Social insurance and taxes

Salary payment – an example Withholding tax – scenario 1

This example is based on an annual income of CHF 110’000* p.a. / EUR 100’000, Married sole earner with two children, incl. church tax (calculated based on gross income
exchange rate 1.10 (March 2021) incl. child allowance)
Sample calculation, individual differences

Name No. Rate Deduction Salary Canton % Deduction Net income after tax

Basel-City 8.29% CHF 793.05 CHF 7‘790.85

Monthly salary CHF 9‘166.65** CHF 9‘166.65
Bern 8.90% CHF 851.40 CHF 7‘732.50

AHV/IV/EO* 5.3% CHF 485.85 Geneva 4.46% CHF 331.95 CHF 8‘251.95

Zurich 4.20% CHF 401.80 CHF 8‘251.95

1.1% (Max.
ALV* CHF 100.85
CHF 135.85

BVG* ca. CHF 169.70

Withholding tax – scenario 2

Other deductions Unmarried, no children/child allowance, incl. church tax (calculated from gross income)
(non-occupational acci- Variabel Max. CHF 226.40 Sample calculation, individual differences
dent insurance)

Total net after deduc- Canton % Deduction Net income after tax
CHF 8‘183.90
tion of social insurance
Basel-City 16.95% CHF 1‘553.75 CHF 6‘630.15

Child allowance 2 CHF 200 CHF 400 Bern 16.65% CHF 1‘526.25 CHF 6‘657.65

Geneva 17.32% CHF 1‘558.55 CHF 6‘595.35

Net before tax CHF 8‘583.90
Zurich 10.78% CHF 988.15 CHF 7‘195.75
* 110‘000 = 101‘538.46 + 8‘461.54 (13. monthly salary)
** 8‘461.54 + (8‘461.54 / 12 = 705.128) = 9‘166.65
Social insurance and taxes Social insurance and taxes

Double taxation agreement between 2. Determination of the centre of life 4. Where does the Heller family pay
Switzerland and foreign countries taxes?
Although Mr Heller spends quantitatively As mentioned in the beginning, the same
Switzerland has concluded double taxation more than the required 183 days in Switzer- salary does not have to be taxed twice. Only
agreements with about 100 countries. The- land, he travels to his family every weekend. the so-called exemption with progression
se agreements make sure that the same tax This qualitative aspect, which in this case is method has an influence on the tax to be
base is not taxed twice. This presupposes preferred by the authorities to the quanti- paid in Germany.
that a foreign employee is not registered as tative aspect, defines the centre of life. Mr
a cross-border commuter but has a residen- Heller is subject to unlimited taxation at his 4.1 Taxable in Switzerland
ce permit B. main place of residence, in this case Frank- Mr Heller’s gross salary of EUR 70’000 plus
furt. As a weekly resident in Zurich, he is child allowance of EUR 4’363 (if drawn in
But where do you pay your income taxes? only partially liable for taxation. Switzerland) is subject to the Swiss withhol-
Can citizens of a different country benefit ding tax.
from the Swiss tax system? What about the 3. Income overview
child allowance? How is real estate taxed? That means that Mr Heller pays taxes on CHF
What about capital that is generated from 6’135, i.e. approx. EUR 5’577 per year in Swit-
share transactions in Switzerland? Gross salary Mr Heller EUR 70‘000 zerland. Gains from non-commercial equity
trading are not taxable in Switzerland.
The following presentation is intended to
Child allowance EUR 4’363
provide a little more clarity based on the (in this case paid by the Swiss 4.2 Taxable in Germany
(2 x 12 x EUR 181,80)
example of a person who lives in Germa- employer – amount varies
depending on the canton)
His wife’s gross salary as well as the rental
ny and works in Switzerland. These agree- income from the property in Germany is
ments will be extended and may vary slight- taxable in Germany. However, we always
ly between countries. Gross salary Mrs Heller EUR 16’000 recommend clarifying which tariff is effec-
tively applied by the progression proviso via
Example double taxation agreement a tax advisor in your home country.
Rental income from pro-
EUR 12’000
perty in Germany
1. Initial situation

Mr Heller has been employed as database Gain from equity

developer at a Swiss canton in Aargau for trading with custody
EUR 15’000
eight months. He is married and has two account in Switzerland
children. His wife is a housewife and works
part-time (40%). The family plans to move
to Switzerland for the new school year in
August. Mr Heller rented a small flat in Zu- Total annual income EUR 117’363
rich for the transition period and spends the
weekends with his family at home.
MOVING
TO SWITZERLAND
We recommend that you, even if you are a www.ums.ch
permanent employee, seek an interim solu- www.homegate.ch
tion for the first few months. During this time, www.buga-apartments.ch
you will have the chance to get an overview www.apaliving.ch
of the region and then decide, in which resi- www.saphyro-ag.ch
dential area you would like to live.
(enter ‘furnished apartment’ in the search criteria)
Studio apartments are an ideal option for
this period. Furnished rooms or flats are also Moving into a guest house is also an option
available on the housing market. And by the you should consider. This is a particular-
way, children can also move to Switzerland ly good option for very short project assi-
during the school year. If you are a tempora- gnments. The costs vary greatly from city
ry employee or freelancer you should decide, to city, but in many cases flat rates and dis-
if contractually feasible, whether you would counts are granted for longer stays or for
like to maintain your centre of life abroad or advance payments (except in Zurich, where
if you would like to shift it entirely to Switzer- prices are above average). Depending on
land for a certain period of time. the equipment, prices often range from CHF
1,200 to 1,800 for the monthly rent.
If you choose to keep it abroad, there are
different options for temporary living you The cheapest option is shared flats. A posi-
should consider. A quiet but potentially cost- tive aspect of this option is that the kitchen
ly option is a furnished apartment. Most big utensils or living room furniture is already
cities in Switzerland offer business apart- available and you only have to bring your
ments which include a room with functional own belongings to Switzerland for the dura-
furniture, a bathroom and a kitchen (someti- tion of the project. Shared flats are most po-
mes also shared kitchens). A laundry service pular among students and young professio-
is also usually included in the rent. You can nals. The prices range from CHF 500 to CHF
also rent a private flat as subtenant when the 1,200 per month.
owner doesn’t live in the flat himself.
Shared flats can be found on the following
Here, too, the flat is furnished, which can be pages:
seen as an advantage. You should expect a
rent of at least CHF 1,500 but, depending on www.wgzimmer.ch
the desired comfort and location, the price www.wg24.ch
could of course be much higher. On the fol-
lowing pages you can find furnished flats in
Switzerland:
Moving to Switzerland Moving to Switzerland

Moving to a rented flat

Housing in Basel Housing in Bern Housing in Zug Housing in Zurich
If you decide to have your main place of re- • Plus additional costs between CHF 200
Apartments Apartments Apartments Apartments sidence in Switzerland, we recommend the bis 250 (EUR 182 - 227)
following pages: • Parking space between CHF 50 und 150
www.abc- www.mohnhaus.ch www.aw-immo.ch www.glandon-
(EUR 45–136)
appartementhaus.ch www.florhaus.ch www.servicestation.ch apartments.ch
www.buga-apartments. www.appartementhaus- www.pabs.ch www.homegate.ch
ch bern.ch www.moeblierte- www.immoscout.ch Higher prices must be expected for flats in
wohnungen.ch www.immoclick.ch new buildings or exclusive/central locations.
www.aas-ag.ch www.anzeiger.ch Flats in the commuting area (20 km radius)
www.visionapartments. are noticeably cheaper; you can save bet-
com Settling in the commuting area (“agglo- ween CHF 100 and CHF 500 (EUR 91–455).
www.aparthotel.ch
meration”) is particularly advisable in me-
tropolises such as Zurich, Geneva or Basel, Specifics
Guest houses Guest houses Guest houses Guest houses where centrally located living space can be
scarce. Just like in other European metrop- In Switzerland, not only bedrooms but all
www.inn-in-basel.com www.bb-kirchenfeld.ch www.hotelalpha.ch www.hotelrothaus.ch olises, living in cities is more expensive than rooms are counted. In so-called half rooms
www.bnbbasel.ch www.marthahaus.ch www.hotel-guggital.ch www.walhalla-hotel.ch in the commuting area. The following indi- (stated as .5) a dinner table can be placed.
www.pension-zuerich.ch cations correspond to the current housing But there is an exception to this rule: in Ge-
market. neva, the kitchen is considered a separate
room. Unlike in other European countries
Average prices for living space such as Germany, a kitchen with a refrige-
in the city rator, oven etc. is always included in Swiss
Housing in Geneva and neighbouring France flats.
Average rent for a 3.5-4.5 room
flat in the city Washing machines and dryers are also avai-
Apartments Apartments Guest houses
Basel CHF 2‘030 – 2‘660 lable (often in the basement to be used by
www.glocals.com www.citadines.com www.logement-geneve.ch all tenants).
www.logement-geneve. www.residence-meubles. www.cityhostel.ch/english/ Bern CHF 1‘950 – 2‘600
ch ch
www.homesweethome.ch www.residence-mont- Geneva CHF 2‘680 – 3‘820
www.gerpar.ch blanc.ch
www.nettilac.ch Luzern CHF 1‘952 – 2‘430

Zurich CHF 2‘489 – 3‘073

If you cannot find anything suitable on these websites or if you have any further questions, Source: Comparis.ch
please get in touch with your representative at Hays Switzerland at any time.
Moving to Switzerland Moving to Switzerland

Purchase of real estate household effects). The latter is available canton. After that, students enter upper se- students, pursued professions here are craft
for download on the following website: condary schools (Oberstufe). Every canton and commercial activities that do not requi-
If you plan to stay in Switzerland, purcha- h t t p s : //w w w. e z v. a d m i n . c h /e z v/e n / has its own regulations; in the cantons Zu- re the attendance of the Sekundarschule.
sing real estate can be an interesting option. home/information-individuals/personal- rich and Lucerne, a direct transition to the
Prices for real estate are higher than in the property--students--holiday-homes-- Gymnasium is possible whereas in other In order to harmonise school standards and
rest of Europe. That is partly due to the very getting-married-and-/importation-into- cantons, the so-called Sekundarschule must increase young people‘s opportunities, the
high building standard in Switzerland (there switzerland/moving--household-effects-. first be attended. Even if the transition to levels in some cantons have been renamed
are practically no buildings without well-de- html the Gymnasium is not to be an issue later, A, B and C secondary levels, allowing stu-
veloped cellars) as well as the limited buil- children can attend the Sekundarschule (for dents to attend different levels depending
ding land in Switzerland – only 6% of the This form must also include all vehicles that students intending to pursue a commercial on their strength in different subjects. The
land is habitable. But that is also the reason are imported to Switzerland. If those vehic- or industrial apprenticeship). Realschule or new school year always begins in August.
why real estate, as well as building plots, are les are in your possession for more than six Oberschule is usually attended by weaker
a very interesting and worthwhile financial months and are not resold within the next
investment, especially for old age. year, no import tax must be paid on them.
The imported vehicles must be registered in
As a general rule, about 20% equity capital Switzerland within one year. The same rule
is required for the purchase of real estate, of possession for six months applies to fur-
whereas both the accumulated money from niture and other possessions that are trans-
the pension fund and from pillar 3 (see chap- ferred to Switzerland. Theoretically, a VAT of
ter social insurance and taxes) can be con- 7.6% must be paid for household effects and
sidered. Over the years, it will be amortised. furniture which are in your possession for
In contrast to Germany, for example, around less than six months. Furthermore, alcohol
60% of the purchase is left in the mortgage and tobacco must be declared according to
to benefit from the very low Swiss mortga- their quantity.
ge interest rates (normally between 2% and
5%, see www.comparis.ch). Thus, financing You can change your driving licence within
real estate can be cheaper than an equiva- one year.
lent rented flat.
School system
At the border
Children generally have to attend school.
Bring an inventory list with all the household The public school system in Switzerland has
effects that you have prepared in advance. a very high standard. Universities are loca-
It must be presented to the border officials ted in the most important economic cen-
when crossing the Swiss border together tres such as Zurich, Bern, Basel, St. Gallen,
with the residence permit or (if not available Lucerne, Geneva or Fribourg. School starts
yet) the assurance of a residence permit, the at the age of six. Before that, children go
rental agreement and the form “Erklärung / to the kindergarten for one to two years.
Abfertigungsantrag für Übersiedlungsgut” Elementary school is called “Primarschule”
(declaration/application for clearance of and lasts five to six years, depending on the
TRANSPORT Transport

Public transport Road traffic Aviation

Switzerland has a very good public transport in the same households can be purchased at The speed is limited to 50 km/h in town, 60 The three biggest airports are Zurich-Klo-
infrastructure. Trains, buses and trams offer much lower prices. km/h or 80 km/h out of town, respectively, ten, Geneva-Cointrin and Basel-Mulhouse.
a comfortable, cheap and ecological way to and 120 km/h on motorways. They are served by most international air-
get to work. Ticket prices (2. class, city cen- (for details see: https://www.sbb.ch/en/ lines. Smaller airports are in Bern, Sion and
ter) in major cities are stated in the table be- travelcards-and-tickets/railpasses/ga.html) A toll road sticker is mandatory when using Lugano.
low. motorways and must be attached to the
windscreen in a clearly visible position. It Despite a dramatic slump in passenger
can be bought at the customs, every petrol numbers as a result of the coronavirus
Ungefähre Ungefähre station, post offices and most garages for pandemic, Zurich Airport is still very popu-
Stadt monatliche jährliche CHF 40 per year. lar with travellers and again won the ASQ
Kosten Kosten Award as “best airport in the category for
Basel CHF 80 CHF 860 European airports with 25–40 million pass-
engers”. The ASQ Award is presented annu-
Bern CHF 79 CHF 790 ally by Airports Council International (ACI)
World, the international umbrella organisa-
Genf CHF 82 CHF 876 tion for airport operators. Following on from
2006, 2008, 2018 and 2019, this is the fifth
Zürich CHF 85 CHF 782
time that Zurich Airport has taken first place
in an ASQ Award.
Table: Monthly / annual fares for public transport in dif-
ferent cities (March 2021)

With the GA travelcard of the Swiss federal

railway SBB you enjoy unlimited travel on
most SBB routes (approx. 18,000 kilometres)
and most private trains, buses and trams. Be-
sides this you can also travel on commercial
passenger boats on most Swiss lakes. Furt-
hermore, you receive significant price reduc-
tions on many mountain railways.

We recommend the GA travelcard for the

2nd class for CHF 3,860 or EUR 3,487 annu-
ally or CHF 340/EUR 307 monthly for adults.
Additional cards for family members living
LIVING
IN SWITZERLAND
Authorities
Information on the authorities of your can- enjoy a guaranteed right to return to the pu-
ton can be found in the internet by using the blic German health insurance. In the form of
respective abbreviation of the canton in the an entitlement, privately insured persons can
URL: insure themselves with their German health
insurer for a possible later return to Germany.
Canton of Aargau www.ag.ch
Canton of Basel Country www.bl.ch The insurance premium for a basic and ad-
Canton of Basel City www.bs.ch ditional insurance for adults usually amounts
Canton of Bern www.be.ch to CHF 300-500 per month. Health insuran-
Canton of Luzern www.lu.ch ce premiums depend on the selected addi-
Canton of Schwyz www.sz.ch tional insurance as well as age, gender, place
Canton of St. Gallen www.sg.ch of residence and the amount of the limited
Canton of Zug www.zg.ch excess.
Canton of Zurich www.zh.ch
Canton of Geneva www.ge.ch The type of hospitalisation and the free
etc. choice of physicians is determined by the
choice of the insurance types “general”, “se-
Health insurance mi-private” and “private”. Many insurers offer
insurance plans such as “HMO”, which positi-
In Switzerland, everyone has to take out pri- vely influence the premium.
vate health insurance. The employer does
not bear any costs in this case. However, the In this model the insured person agrees, for
insurance premium is much lower than in instance, not to accept treatment by a short
Germany, for instance. The new employee list of physicians who have not worked cost-
must take out basic insurance in Switzerland effectively in the past. The goal of such plans
within three months. is to bring the ever-increasing costs in he-
althcare and the resulting premium increases
A health insurance may refuse additional in- under control.
surances exceeding the basic insurance, but
that is usually an exception and rarely the A positive aspect for high earners is that the
case. Unlike in other European countries, insurance premium does not depend on the
Swiss insurances cannot refuse basic insu- income. There is a lot of competition bet-
rance. That means that every Swiss insuran- ween health insurance companies in Switzer-
ce must generally accept every applicant for land. A good overview and further informa-
basic insurance. In addition, German citizens tion can be found on www.comparis.ch.
Living in Switzerland Living in Switzerland

Health insurance for cross-border sidents of these countries can take out insu- The low VAT (7.7%), low duties and taxes (Frankfurt, Berlin), Canada (Toronto, Mont-
commuters Switzerland/France rance in their country of residence (option make many products and services less ex- real) and Belgium (Brussels), the net income
right). Those who do not want to take out pensive than in Germany, for example. Only level is notably lower than the gross income
As a general rule, persons residing in an EU/ health insurance in Switzerland must apply few know that fuel oil and computers as well level as taxes and social insurance contribu-
EFTA country and working in Switzerland for an exemption from the obligation to be as tobacco and petrol are cheapest in Swit- tions are very high in these countries. Seen
must take out health insurance in Switzer- insured with the competent authority in the zerland. from a global perspective, the purchasing
land. Exceptions can be granted depending canton of their employment within three power is highest in Zurich, Geneva, Los An-
on the country of residence and nationality months from the onset of their employment Prices and salaries – geles and Miami.
of the employee. Pursuant to the Agree- relationship. a comparison of purchasing power
ment on the Free Movement of Persons and salaries around the world Rent is not included in this comparison, sin-
with the EU and the EFTA Convention from In March 2015, the Federal Supreme Court is- ce both the housing cost gap between city
2002 introducing the harmonisation of so- sued a ruling on the exercise of option rights The city with the highest income is Luxem- and country and the commuting time/dis-
cial security systems, the obligation to be in health insurance. According to this ruling, bourg, followed by Los Angeles, Geneva tance between metropolis and place of re-
insured follows the principle of place of em- a so-called tacit exercise of the option right and Miami. However, Scandinavian cities sidence can be fundamentally different and
ployment. Every person working in Swit- is not legally valid. Cross-border commuters fall behind due to the high taxes and social it is very difficult to find a denominator. The
zerland as well as their non-working family who have not previously been insured in insurance contributions. In Scandinavia (Co- following shows the results of a study pu-
members must take out health insurance Switzerland but have been insured abroad penhagen, Oslo and Stockholm), Germany blished by UBS:
in Switzerland. This is particularly true for without having submitted a formal appli-
cross-border commuters. cation for exemption from the obligation to City Gross hourly rate Net hourly rate Net annual icome
be insured in Switzerland, can take out insu- (Purchasing power with respective salaries at respective locations)
Cross-border commuters from EU/EFTA rance in Switzerland pursuant to KVG. They Los Angeles 122.1 129.4 123.9
countries holding a G permit must have in- must obtain confirmation from the compe- Zurich 111.1 131.7 122.5
surance from the onset of their employment tent office in the canton of employment that
Miami 112.1 125.9 121.7
relationship. They have 3 months to take out they have not yet made a legally valid opt-
an insurance policy with a Swiss health insu- in. Upon presentation of this confirmation, Geneva 115.9 117.4 118.0

rance company. In the event of this deadline they will be accepted by the Swiss health in- Luxemburg 125.0 124.6 117.3
not being observed, a premium supplement surance company. Detailed information can Chicago 96.7 102.4 105.8
may be applied to them for late registration be found on the separate fact sheet “Health Toronto 107.1 107.9 101.5
in case of a non-excusable delay, and they insurance for cross-border commuters Swit-
Manamah 70.8 94.4 100.6
will be assigned to a health insurance ex of- zerland/France”.
Hong Kong 78.9 94.6 100.3
ficio. They will be liable to pay for medical
treatment themselves until entry date. The Living costs New York (Basis) 100.0 100.0 100.0
obligation to be insured ends with the ter- Munich 104.0 104.8 99.1
mination of the employment relationship. The living costs are on average higher than Frankfurt 105.6 106.4 97.6
in most other European countries. This ap- Sydney 87.9 99.4 96.5
Option right for health insurance plies to the aforementioned rents but also
to food and services in general. In less urban (Source: www.ubs.com/pricesandearnings)
However, Switzerland has signed special areas, around 20 km from the city centres,
agreements with neighbouring countries costs are lower, though. * Gross/net hourly wages divided by the cost of the shopping basket and services, excluding rent.
(Germany, France, Italy, Austria), so that re- ** Net annual income divided by the cost of the shopping basket and services, excluding rent.
Living in Switzerland

Income levels: Switzerland and

other European countries
Due to the low taxes and the manageable the political and economic situation, health
social insurance contributions in Switzer- care, entertainment and shopping opportu-
land, gross salaries of high earners (acade- nities, schools, housing situation as well as
mic professions, management etc.) and low environmental issues, Zurich was chosen as
earners (retail trade, production, certain ser- the number one city with the highest qua-
vice sectors) do not deviate from each ot- lity of life out of 215 cities seven times in a
her as much as in other European countries. row in a survey conducted by the renowned,
This results in a lower salary gap. London-based personnel consultancy Wil-
liam M. Mercer. Since 2019, Vienna narrowly
Many applicants from abroad are not aware overtook Zurich. Together with Geneva (9th
of this and demand salaries in job interviews place) and Basel (10th place), all three Swiss
that exceed the possibilities of our custo- cities that were evaluated are among the
mers. Particularly major companies have top ten.
clearly defined salary ranges or groups. (Source www.mercer.de)
Such mechanisms serve to homogenise sa-
laries.

In the first interview, we discuss an ade-

quate and realistic salary range with our
candidates, which we agree upon with our
customers. We also take the entire market
into consideration, so you can be sure that
we provide optimal advice in this matter.
We therefore would like to ask you to stick
to the agreed salary requirements. Should
you wish to change your salary expectati-
ons during the application process for any
reason, please contact us immediately. We
want to prevent you from overshooting the
mark because of false information. Inade-
quate salary expectations are fatal to every
interview.

Quality of life
After the evaluation of 39 criteria such as
MISCELLANEOUS Miscellaneous

Currency The unemployment rate in Switzerland is So why not go on a day trip to Milan, Lyon
4,8% or Bregenz.
The official currency in Switzerland is the (Source: de.statista.com - ILO Definition )
Swiss franc (CHF). The euro is often ac- Please contact your local tourist office for
cepted, but only in the form of bank notes. Opening a bank account more information about leisure activities in
Change is paid out in Swiss francs. your region.
When opening a bank account, please bring
The average exchange rate is: your permit (B, L or C) and, if possible, your To get an overview of restaurants, bars and
1 EUR = approx. CHF 1.10 (March 2021) employment contract. In order to open a clubs in Zurich, Basel as well as the cantons
Swiss bank account, you must specify a per- Ticino and Graubünden, we recommend
100 Rappen correspond to one Swiss franc. manent Swiss residence. Of course, you can the restaurant guide of Gourmedia (“Zürich
open a normal savings account with your ad- geht aus”, “Basel geht aus” etc.) which you
Bank notes: CHF 1,000, 200, 100, 50, 20 and dress in your home country. can order here: www.gourmedia.ch
10
Coins: CHF 5, 2, 1 and 50, 20, 10 and 5 Rappen Electricity Useful links
Payroll The voltage is 220-230 volts / 50 hertz; for Here you find some useful links:
cooking stoves, washing machines etc. 380
The annual salary is paid in 12 or 13 monthly or 3x380 volt plugs/sockets, European uni- Social insurance authorities
salaries, normally on the 25th of each month. versal plugs of type C. Appliances and elec- www.bsv.admin.ch/
The employer directly deducts all social se- trical appliances up to 2,200 watts have a
curity contributions and the withholding tax. three-pole plug of type J. Comparison of vehicle and health insuran-
The child allowance is paid by the employer. ces, taxes, mortgage interest, Pillar 3 etc.
Adapters are available in all bigger electro- www.comparis.ch
Probationary period nics shops.
Apartment search
Usually, the probationary period in Switzer- Leisure time www.homegate.ch
land is between one and three months. www.immoscout.ch
Whether you like skiing, hiking, biking or rat- www.immoclick.ch
Notice period her like to go to the opera, Switzerland of- www.anzeiger.ch
fers a wide range of leisure activities. Major www.newhome.ch
The usual notice periods are as follows: one events like Art Basel (art fair for modern and
month to the end of the month during the contemporary art), the Montreux Jazz Fes- Furnished flats
first year, two or three months from the se- tival, the Geneva International Motor Show, www.moeblierte-wohnungen.ch
cond year and at least three months after ten the Lucerne Festival for fans of classical www.ums.ch
years. During the probationary period the music or the street parade in Zurich are on
notice period is seven days. Unlike in Germa- the global agenda of the best events of their
ny, there is no protection against dismissal in kind. Switzerland is also the ideal starting
Switzerland. point for travellers. Italy, France and Aust-
ria are normally only two hours away by car.
Hays (Schweiz) AG Hays (Schweiz) AG
Sihlstrasse 37 Viaduktstrasse 42
8001 Zurich 4051 Basel
Tel: +41 225 50 00 Tel: +41 61 225 05 00

Hays (Schweiz) AG Hays (Suisse) SA

Effingerstrasse 16 Rue Kléberg 6
3008 Bern 1201 Geneva
Tel: +41 31 660 42 00 Tel: +41 22 901 60 00

www.hays.ch

The brand HAYS and the H symbol are registered trademarks of Hays. © HAYS 2021