Relocation to Switzerland

Switzerland is one of the most attractive relocation destinations in Europe. A high quality of life, political and economic stability, and excellent infrastructure make the country appealing to both professionals and private individuals.

Relocating to Switzerland offers numerous advantages but requires careful planning. Key considerations include residence permits, choosing a place of residence, tax regulations, and finding housing. Even for EU/EFTA citizens, certain administrative steps—particularly registering at your new place of residence—are mandatory.

Professional relocation service providers and specialized consultants can significantly simplify the move and guide you through the entire settlement process. This is especially true for complex relocation projects, such as those involving family offices.

Thanks to its international network, Engel & Völkers assists in the search for the right property and, if needed, connects you with experienced relocation experts. Your local Engel & Völkers advisor will be happy to serve as your point of contact throughout this process.

Entry and Stay

People entering Switzerland must meet the following requirements: 

If someone wishes to stay in Switzerland for more than three months or take up gainful employment, a residence permit is required. These permits are issued by the cantonal immigration offices. A distinction is made between short-term residence permits, residence permits, and permanent residence permits.

Short-term residence permit (less than 1 year)

EU15/EFTA nationals, as well as nationals of Malta and Cyprus: L permit (EC/EFTA)

• Valid only for the duration of the fixed-term employment contract, up to a maximum of 1 year

• Job seekers receive a permit after 3 months of residence, which can be renewed after one year

Other countries: L permit

• Valid only for the duration of the fixed-term employment contract, up to a maximum of 1 year

• Extensions are granted only in exceptional cases for up to a maximum of two years, provided there is no change of employer. The number of permits is limited
  

Residence Permit (Temporary Residence)

EU15/EFTA nationals, as well as nationals of Malta and Cyprus: B EG/EFTA residence permits

• Valid for a maximum of 5 years, with the possibility of renewal provided the requirements are continuously met

• Requirements: an employment contract of at least 12 months or an indefinite-term contract

• Self-employed individuals and non-working persons will only be granted the permit if they can prove sufficient financial resources

Other countries: Permit B

• Valid for 1 year, with the possibility of annual renewal

Residence Permit (Permanent Residence)

EU15/EFTA nationals, as well as nationals of Malta and Cyprus: EC/EFTA Permit C

• Requirement: regular and uninterrupted residence for 5 years

Other EU countries: EC/EFTA Permit

• Requirement: regular and uninterrupted residence for 10 years

Other countries: C Permit

• Requirement: uninterrupted residence for 10 years

• Effect: free choice of employer and exemption from withholding tax

People who have recently moved to Switzerland must register with the residents’ registration office at their new place of residence within 14 days.  To do so, they must generally present a passport or ID card, a foreigner’s residence permit, or a confirmation of their residence permit.

If a certain amount of cash is brought into Switzerland, that amount may be subject to a reporting or declaration requirement. In principle, there are no restrictions on the import of foreign currency.

Work Permit

The employment of foreign workers is governed by a wide range of legal provisions. For legal classification purposes, the nationality of the employed person is the primary determining factor. This forms the basis for further questions regarding a permit and its requirements—in particular, whether there is an entitlement to be granted a permit or whether there is room for discretionary decision-making by the authorities.

When it comes to work permits for foreign workers—as with residence permits—Switzerland follows a dual system. Simpler regulations apply to nationals of EU/EFTA countries compared to nationals of third countries.

EU/EFTA nationals

Nationals generally benefit from full freedom of movement (exception: Croatia, which has been subject to quotas again since January 1, 2023).

• Effect: Stay in Switzerland without a permit and without gainful employment is possible for up to 3 months. Only registration is required.

• Taking up gainful employment: For stays longer than 3 months, registration with the municipality of residence is required, and the employee must apply for a residence permit.

Nationals of third countries

• Admission: In principle, only highly qualified workers who are needed by the Swiss economy are admitted.

• Employer’s proof: The employer must prove that they have been unable to find a Swiss national or a worker from the EU/EFTA region to fill the vacancy, that the worker’s qualifications are sufficient, and that the wage and working conditions are met.

• Restriction: The number of work permits for third-country nationals is limited (separate quotas apply to the United Kingdom).

Labor Law

Anyone working in Switzerland benefits from a clear legal framework and attractive working conditions. Understanding the key provisions of labor law makes it easier to successfully enter the Swiss job market.

Housing: Rent or Buy?

In Switzerland, it is often difficult to find suitable and affordable housing. Vacant apartments are in very short supply, especially in cities—particularly in the lower price range.

Purchase of Residential Property by Foreigners

• A general permit requirement applies to the purchase of real estate by foreigners, companies headquartered abroad, or shareholders based in Switzerland that are under foreign control.

• The permit is issued by the relevant canton.

• Ownership of real estate does not entitle the owner to a residence permit in Switzerland.

For information on exemptions from the permit requirement, as well as other questions regarding the purchase of residential property in Switzerland by foreigners, please refer to our guide on the Lex Koller.

As a general guideline, at least 20% of the purchase price of a property must be financed from the buyer’s own funds. Of this amount, at least 10% must be actual equity (e.g., bank account balances; no pledges of 2nd or 3rd pillar assets). The remaining 80% is typically financed through a mortgage loan. 

Renting Real Estate

Rents in Switzerland are relatively high by international standards. Rents in cities are generally significantly higher than in rural areas, but there are also significant differences from canton to canton.

It is advisable to have important documents ready in advance, such as:

• Criminal record extract

• Debt collection report (or comparable documents from your country of origin or previous place of residence)

• Proof of sufficient financial resources (e.g., bank statement)

• For applications submitted by companies, an extract from the commercial register and other relevant documents 

Searching for a property to buy or rent in Switzerland can be challenging. Online real estate platforms offer valuable support. It may also be worthwhile to set up “search alerts” on various platforms to be automatically notified of new listings.

Real estate agents also provide professional support; beyond the search itself, they can offer important information on purchasing, financing, taxes, and other real estate-related topics. 

Taxation of Individuals

1. Full Tax Liability

Under the Swiss tax system, individuals who are domiciled in or have tax residency in Switzerland are subject to unlimited tax liability.

• Individuals who stay in Switzerland for at least 30 days and are engaged in gainful employment

• Individuals who stay in Switzerland for at least 90 days without being engaged in gainful employment

Foreign nationals who do not hold a permanent residence permit but are staying in Switzerland and are employed are generally subject to withholding tax.

• Tax liability begins when employment commences.

• Taxable income consists of gross income excluding deductions for AHV/IV, ALV, UVG, and BVG.

• The calculation is based on the monthly gross salary.

If the annual gross salary exceeds CHF 120,000, the income is generally no longer subject to withholding tax alone, but rather to a subsequent regular tax assessment.

2. Limited Tax Liability

Natural persons residing abroad are subject to limited tax liability if they are liable for tax due to an economic relationship, for example through:

• Real estate in Switzerland

• A permanent establishment in Switzerland

Flat-Rate Taxation

Flat-rate taxation is available only to individuals who earn their income exclusively abroad. It may apply to both foreign nationals and Swiss citizens who have lived abroad for more than 10 years.

Types of Taxes

The Swiss Federal Constitution governs which taxes the federal government is authorized to levy. In certain areas, the federal government has explicit tax sovereignty.

The cantons have considerable autonomy in shaping their tax systems and rates and are authorized to levy taxes that the federal government does not claim exclusively for itself. As a result, the tax burden varies between cantons as well as between individual municipalities.

Each canton has its own tax law, and tax rates within individual municipalities also vary. It is therefore advisable to obtain a tax ruling before moving to Switzerland. It is also recommended to seek advice from a foreign tax specialist in your country of origin regarding your departure.

Child Care, Schools, and Education

Families in Switzerland have access to a wide range of child care and educational options. However, it is advisable to plan ahead, as child care spots in particular are in high demand in many regions.

Daycare Centers and After-School Care

Available spots in daycare centers are often scarce in Switzerland, particularly in urban areas. It is therefore advisable to inquire with the relevant daycare centers (Kitas) well in advance. Relocation companies can also be of great assistance in this area. 

School, Education, and Vocational Training

Compulsory schooling begins for children at age 6. Before that, children usually attend kindergarten for two years, although depending on the canton, only one year of kindergarten is mandatory.

Compulsory schooling lasts a total of nine years. Attendance at public compulsory schools is free of charge. A completed Maturität qualifies students to study at a university or college. Another option is vocational training, which consists of practical on-the-job training at a training company supplemented by attendance at a vocational school. This allows students to earn a vocational Maturität while attending vocational school; this qualification enables them to pursue studies at a university of applied sciences. An additional option is attending various specialized secondary schools, which prepare students for a career in a specific professional field or for studies at a university of applied sciences.

The education system in Switzerland is the responsibility of the cantons, which is why regulations vary to some extent. There are also additional programs available for students who speak a foreign language.

Further information can be found in the references below or provided by your Engel & Völkers advisor.