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WORK PERMITS

What is the difference between Swiss work and residence permits?

Foreign residents in Switzerland typically use the two terms interchangeably, but are they really one and the same?

What is the difference between Swiss work and residence permits?
Some foreigners have the right to come to Switzerland to work, but not to live here. Photo by Fabrice COFFRINI / AFP)

It is logical that a foreign national who has a permit to work in Switzerland, will also have to live in the country.

So in this sense, the work and residence permits are (in the vast majority of cases) closely linked together — inseparable, you might say.

Except that sometimes they are not.

How is this possible?

Let’s look beyond the most common scenario, that of B or C permit holders who are employed in Switzerland on a short or long-term basis, and reside in the country while they work here.

In one such case, however, these foreign nationals can work in Switzerland, but not live here: they need a work permit but not the residence one.n In the other, it is the opposite — these people are allowed to reside here but cannot hold a job, which means they can obtain a residence status only.

Who are those foreigners with ‘partial’ rights?

The first group that is subjected to residence (but not employment) restrictions are cross-border G-permit holders.
These 390,000 workers who commute to their Swiss jobs from the neighbouring countries must return home each day, or at least once a week, which means that they can be employed in Switzerland, but not live here.

Of course, as citizens of EU nations (France, Germany, Italy, and Austria) and an EFTA state (Liechtenstein), these people have the right not only to work but also to LIVE in Switzerland — as  long as they change their G permits for B, the latter ones being fairly easy to obtain for this particular group of people.

READ ALSO: Who can work in Switzerland but live in a neighbouring country?

And then there are those who can live in Switzerland but not work here.

This concerns non-EU/EFTA nationals, whose access to both the job market and residency is restricted — with one exception.

A little and rarely used Article 30 of the Federal Aliens Act sets out derogations from the regular, strict admission requirements.

It enables foreigners from outside Europe to move to Switzerland — but only if they are sufficiently wealthy to live here without having to work or (even worse) resort to welfare benefits.

The law states that in cases of “important public interests” — that is, plenty of money in state coffers — cantons can grant citizens of third countries permissions to settle on their territories with a B residence permit. 

What does “sufficiently wealthy” actually mean in Switzerland?

Obviously, the sky’s the limit and the amounts depend on where in the country you want to live. But just as an indication, “buying” your way into the residency permit in Geneva costs roughly 312,522 francs in tax revenue per year, 415,000 in Vaud, and 287,882 in Valais.

Add to this a fee you would have to pay a specialised relocation attorney — reportedly at least 50,000 francs — to negotiate a lump-sum tax agreement for you with authorities of the canton where you would like to live.

If you meet all of these requirements, you will have a right to residency in Switzerland, but will not receive and work permit (which is just as well, since with this kind of money, you definitely won’t have to look for a job to supplement your income.

READ ALSO: Everything you need to know about ‘buying’ Swiss residency

 
 
 

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For members

WORK PERMITS

Why Switzerland doesn’t hand out all available work permits for non-EU nationals

Out of the maximum number of work permits set aside by Swiss government for UK citizens and other non-EU nationals, only a portion have been handed out.

Why Switzerland doesn't hand out all available work permits for non-EU nationals

While citizens of the EU and EFTA states (Norway, Iceland, and Liechtenstein) have an almost unlimited access to Switzerland’s labour market, those coming from third countries face more restrictions. 
 
To be able to work in Switzerland, people from outside the EU / EFTA must be highly qualified specialists or other skilled professionals.

According to State Secretariat for Migration (SEM), “this means that you should have a degree from a university or an institution of higher education, as well as a number of years of professional work experience.”

Another hurdle to overcome before a third-country candidate can be hired, is that no Swiss or EU / EFTA national can be found for a given position.

Annual quotas

Each year, the Federal Council releases a set number of permits (also called ‘quotas’), allowing non-EU / EFTA nationals to work in Switzerland during the year.

Quotas for 2024 are the same as they have been for the past several years: 12,000 in all.

They consist of B and L permits, depending on the kind of employment individual foreigners are eligible for.

Out of the total number, 3,500 permits are set aside specifically for UK nationals, who are eligible for separate quotas as part of a transitional post-Brexit arrangement: 2,100 B and 1,400 L permits are  just for them.

The remaining 8,500 permits are meant for other third-country workers.

Third-country quotas are set by each canton, depending on its economic needs.

The federal government then determines the total number of permits it will make available to each canton.

READ ALSO : Who do Switzerland’s 12,000 work permits for non-EU citizens go to?

Given the shortage of qualified workers in Switzerland, a natural assumption would be that all of 12,000 non EU / EFTA permits would be snapped up / attributed.

However, this is not the case.

Recent SEM data indicates that in 2023, there was a quota ‘shortfall’ — in other words, only a part of available third-country permits had been issued. 

Of the total of 12,000 permits, 7,480 were distributed among cantons for their non-EU / EFTA workforce — 848 (out of 3,500) were issued to UK nationals and 6,632 (out of 8,500) to people from other third countries. 

In fact, “this maximum number had not been fully utilised since 2017,” SEM’s spokesperson Samuel Wyss told The Local.

‘Demand-driven system’

One reason, according to Wyss, is that “the admission of third-country nationals depends on the needs of the economy and employers.”

Therefore, “the system for admitting third-country nationals to the Swiss labour market is demand-driven… The majority of Switzerland’s labour and skilled worker requirements are covered by domestic workers and those from EU/EFTA states.”

Additionally, a number of applicants don’t meet the eligibility criteria for the permit — ranging from the candidates’ professional qualifications to insufficient contribution they would make to Switzerland’s “overall economic interest.”

“If one or more of these requirements are not met, the permit will not be granted, even if there are still quotas available within the annual maximum numbers,” Wyss pointed out.

READ ALSO: How UK citizens can obtain a Swiss work permit set aside for British
 

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