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WORKING IN SWITZERLAND

EXPLAINED: How to register as self-employed in Switzerland

If you already have the right to live in Switzerland and are looking to go freelance, registering as self-employed is usually a straightforward process.

Published: 31 January 2024 10:16 CET
EXPLAINED: How to register as self-employed in Switzerland
How to register as self-employed in Switzerland? Photo by Marvin Meyer on Unsplash

Swiss residents and most EU/EFTA nationals can register as self-employed by applying through their cantonal compensation office.

You aren’t required to register immediately, as you will be asked for proof of self-employment such as invoices and marketing materials, but it is recommended to do so within a few months to become officially recognised.

Once your compensation office has verified your self-employed status, you can then contact your local migration office to register your self-employed status.

The process differs depending on where you live, however you’re likely to be asked to provide the following during the process:

  • Identity card or passport
  • Invoices and contracts for services
  • Bank statements
  • Proof of health insurance
  • Advertising/marketing materials
  • Confirmation of registration with the compensation office

If your permit is dependent on a partner, for instance, they may be asked to sign a letter confirming your address. If your application is approved, you will be issued a renewable five-year B permit.

If your annual turnover is more than 100,000 francs, you must also register for VAT and enter your company on the commercial register.

Those from a non-EU/EFTA country may be required to hold a C permit or be the spouse of a C permit holder or Swiss citizens to apply to be self-employed. Otherwise, you may need to apply with the canton and provide more information about your business to prove you meet stricter Swiss labour market requirements.

Being a citizen of a ‘third-country’ (non-EU/EFTA) doesn’t exclude you from setting up a business in Switzerland, but conditions for doing so are stricter as you must demonstrate that your self-employment will have a positive impact on the Swiss labour market and is in overall economic interest.

As a result, you may be asked to provide a business plan and an analysis of the market, as well as planned investments and forecasts for turnover and profit.

There are also rules and processes you should be aware of when filing your first tax return as a self-employed person in Switzerland, such as social security contributions, setting off depreciation and amortisation costs, and deductible interest.

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For members

WORKING IN SWITZERLAND

In which jobs in Switzerland do foreign workers earn more than the Swiss?

It is generally assumed that foreigners working in Switzerland have lower wages than Swiss nationals. But official data shows this is not always the case.

Published: 15 May 2024 11:28 CEST
In which jobs in Switzerland do foreign workers earn more than the Swiss?

You may have heard, or read on some forums, that Swiss companies hire foreign workers because they can pay them less.

Unfortunately, pay inequality does exist in Switzerland, but it is linked to gender rather than nationality.

But if you are a foreigner working in Switzerland legally (as the vast majority of international residents are), then you are not going to be a victim of wage dumping, that is, sub-standard pay, as the law prohibits such practices.

READ ALSO: Can my Swiss employer pay me less because I am a foreigner? 

In fact, figures released by the Federal Statistical Office (FSO) indicate that in some positions, foreigners earn more than the Swiss.

In its report on Wednesday, Tribune de Genève analysed FSO’s data and found that, depending on the job and industry, foreigners (including cross-border workers) have higher salaries than the Swiss.

“We observe differences depending on the fields of activity, diplomas, and regions of the country,” the newspaper reported.

Overall, Swiss employees do make more money than their foreign counterparts: their median salary is 7,563 francs a month, while those with a B permit earn 7,222 francs, C permit holders earn 7,111 francs, cross-border commuters make 6,989 francs, and those with a short-term L permit have 5,706 francs.

These are, however, general averages culled from all sectors and jobs.

But when looked at individually, we see that in certain positions, foreign employees have higher wages than their Swiss counterparts.

In what jobs do foreigners earn more than the Swiss?

For instance, in middle and upper management, those with a B permit have highest salaries: they earn 12,791 francs a month.

Next are those with a C permit, with 11,495 a month. G permit holders — that is, cross-border workers — earn 10,707 francs.

All of them have higher wages than the Swiss, who earn 10,476 a month.

At the bottom of the scale are L permit holders, with a salary of ‘only’ 8,659 a month.

The same pattern (though with lower overall wages) can be seen among those working in lower management positions: here, C permit holders earn the most — 9,254 francs a month.

They are closely followed by B permits (9,251), with  the Swiss in the third position (8,873).

Cross-border workers and L permit holders earn 8,650 and 5,940 respectively.

Why are foreigners sometimes better paid than the Swiss in those jobs?

“The fact that there are salary differences in certain sectors of economic activity between Swiss and foreigners is partly explained by the shortages in the labour market,” according to FSO.

Human resources specialist, Stéphane Haefliger, agrees that “it is the scarcity of skills [rather than nationality] that determines the price of the position.”

By law, Swiss workers have first dibs at all jobs.

Only when no appropriate candidates can be found among this group, do companies have the right to recruit people from the EU and EFTA (Norway, Iceland, and Liechtenstein), with third-country nationals last on this hierarchal employment scheme.

READ ALSO: Six things you need to know about salaries in Switzerland 

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