SHARE
COPY LINK
For members

LIVING IN SWITZERLAND

Taxes to work permits: Who deals with what in Switzerland?

Like other countries, Switzerland too is a bureaucracy, where various government agencies oversee different functions of public and private life.

Taxes to work permits: Who deals with what in Switzerland?
Car inspections are the responsibility of your canton. Image by Ewan from Pixabay

Unless you are a hermit and live off the grid, you will, sooner or later (probably sooner), have to deal with administrative processes of one kind or another.

In this respect, Switzerland is no different from any other nation, with the only difference being that because it is small and well-organised, the bureaucratic machine is running smoother here than elsewhere.

On the plus side, because it is fairly efficient, dealing with various public entities is probably less of a hassle in Switzerland than in less tidy administrations.

If you are a foreigner, especially a newly arrived one, you may not yet be familiar with the workings of various government agencies — in other words, who does what.

The first thing to know is that very few tasks that are likely to affect you personally are done at the federal level; most administrative processes are handled by cantons and municipalities.

These are some of the most important services, and who is responsible for providing them:

Pensions: federal and cantonal

The Federal Department of the Interior regulates and supervises obligatory pension plans, while the Federal Social Insurance Office implements the scheme.

Your pension, however, will be paid by your canton’s social insurance office

Work / residence permits: cantons

Permits are delivered by your canton, though the application procedure is different depending on whether you are an EU / EFTA national or a citizen of a third country.

Cantonal authorities are also responsible for renewing / extending expiring permits.

Taxes: cantons

As the cantonal tax office calculates how much taxes you owe in any given year, your declaration must be sent to cantonal authority

They will collect the cantonal, federal, and municipal taxes, distributing the money proportionally among them.

Driver’s license / car registration: canton

Anything related to driving — tests, licenses, vehicle registrations, and inspections — is the responsibility of cantonal automobile services

Health insurance subsidies:canton

If the monthly premiums of your obligatory health insurance (KVG / LaMal) exceed 8 percent of your income, then you may qualify for subsidies (premium reductions) from your  canton of residence.

You can apply for them here

READ ALSO: How do I apply for healthcare benefits in Switzerland?

Social aid: canton and municipality

Welfare assistance comes under the responsibility of your canton, which will consider your application and determine if you are eligible for financial help.

However, you should submit your application for assistance to your municipality, which will then transfer it to the cantonal welfare office.

As you can see, most public services are managed by cantons, so you may be wondering what is the role of your local municipality / commune?

They do their share as well.

For instance, they manage a register of residents, organise and maintain their own fire brigades, civil defence units and police forces (the latter two mostly in bigger communes).

They are also responsible for schools on their territories, as well as local energy supplies, municipal roads and parking, waste management, and infrastructure planning and upkeep, among other tasks.

READ ALSO: What exactly does your Swiss commune do?

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

WORK PERMITS

Why Switzerland’s work permit quotas for non-EU nationals are rarely filled

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's work permit quotas for non-EU nationals are rarely filled

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
 

SHOW COMMENTS