Switzerland Individual Tax Guide

EY

Maagplatz 1

P.O. Box

CH-8010 Zurich Switzerland

Executive contacts

Gerard Osei-Bonsu

Hugh Docherty

Immigration contact

Dirk Nuyts

A. Income tax

+41 (58) 286-43-24

Email: gerard.osei-bonsu@ch.ey.com

+41 (58) 286-43-42

Email: hugh.docherty@ch.ey.com

+41 (58) 286-30-09

Email: dirk.nuyts@ch.ey.com

Tax system in summary. Switzerland’s complex tax structure has been shaped by the country’s three levels of government, which are federal, cantonal and municipal. The following two distinct taxes are levied:

• Federal taxes

• Cantonal and municipal taxes

Swiss federal tax law is uniform throughout Switzerland, but each of the 26 cantons has a separate law for cantonal taxes. Municipal taxes are levied as a multiple of cantonal taxes. Because tax laws and tax rates vary widely among cantons and among municipalities, the choice of residence is an important element of tax plan ning.

No average tax rates can be calculated because of the multilayered tax system. Taxes are calculated based on specific figures for specific cantons and municipalities. The maximum overall rate of federal income tax is 11.5%. The various cantonal and municipal taxes are also levied at progressive rates, with a maximum com bined cantonal and municipal rate of approximately 36%. In addi tion, cantonal and municipal net wealth taxes are levied.

The federal Supreme Court and tax administration have devel oped rules for allocating tax liability among the cantons to avoid double taxation.

Federal taxable income. Individuals establishing tax residence in Switzerland are assessed for federal income tax purposes on a current-year basis.

Special rules apply for the first year a taxpayer is subject to Swiss tax. In addition, the basis of assessment may be altered if certain extraordinary events substantially change an individual’s financial situation (for example, change of business or profession, or divorce or legal separation).

In general, taxable income for federal tax purposes consists of all types of income earned by a resident individual, including the following:

• Remuneration from an employer (base salary, bonus, stock options, home leave, and payment of rent, taxes, school fees and utilities)

• Self-employment or business income

• Pension payments and compensation for loss of work or health

• Income from private investments (including interest and dividends)

• Income from real estate

Although income derived from either a fixed place of business or a permanent establishment located abroad, as well as income derived from real estate located abroad, are exempt from taxation, this income must be properly recorded on a Swiss tax return for the determination of the tax rate (exemption with progression).

Cantonal and community taxable income At the cantonal level, tax is also assessed on a current-year basis. Taxable income for cantonal and community tax purposes is calculated in basically the same way as taxable income for federal taxes.

Who is liable. An individual who is tax resident in Switzerland is subject to federal, cantonal and municipal taxes on worldwide income, except income derived from real estate located abroad and income from either a fixed place of business or a permanent establishment located abroad. Individuals are subject to Swiss income tax and net wealth tax (see Section B) from their first day of residency until they officially leave the country.

Nonresidents are subject to tax on income from the following Swiss sources:

• Interest in Swiss real estate

• Interest in a Swiss partnership or sole proprietorship

• Trade or business attributable to a Swiss permanent establishment or fixed place of business

• Professional practice in Switzerland

• Trade and agency of real estate located in Switzerland

• Services performed in Switzerland (with exceptions)

• Interest income derived from a mortgage secured by Swiss real estate

• Services rendered as a director or officer of a Swiss corporation (with exceptions)

• Payments by Swiss pension funds

Individuals are considered resident in Switzerland if they take up legal residence in Switzerland or if they intend to stay there for a certain period (usually longer than one month), as well as if they work in Switzerland for a period exceeding 30 days.

Income subject to tax. The taxation of various types of income is described below.

Employment income In general, all compensation provided by an employer is considered employment income and is included in the employee’s overall taxable income. However, if properly documented, certain reimbursements for necessary businessrelated expenses are not subject to tax.

Both residents and nonresidents who remain in Switzerland for employment purposes are subject to tax on employment income. Resident Swiss nationals or C permit holders are not subject to withholding tax (they do file an ordinary tax return), and most nonresidents are subject to withholding tax on employment income. Foreign residents who are not C permit holders must file a tax return if their gross employment income equals or exceeds CHF120,000 (on an annual basis), or if they have income (for example, private income) not subject to withholding taxes, have taxable wealth or have Swiss real estate.

Self-employment and business income. Self-employment and bus iness income is included in overall taxable income. A partnership is not taxed as a separate entity; rather, the respective shares of partnership profit are included in the taxable income of each partner. All necessary expenses incurred in operating a business or profession are tax-deductible. Self-employed individuals may carry forward business losses if these losses cannot be offset against other taxable income. No carrybacks are allowed for selfemployed individuals.

Directors’ fees. For residents, directors’ fees received from a Swiss company are included in the taxpayer’s overall taxable income. Directors’ fees remitted from a foreign country are generally included in a resident’s overall taxable income, unless an appli cable double tax treaty provides otherwise. For nonresidents, directors’ fees received from a Swiss company are subject to withholding tax (at a rate of 25% in the Cantons of Geneva and Zurich) and social security contributions (unless the terms of an applicable totalization agreement specify otherwise).

Investment income. A withholding tax of 35% is levied on divi dends; on interest from publicly offered bonds, from debentures and from other instruments of indebtedness issued by Swiss resi dents; and on bank interest (in excess of CHF200 per year), but not on normal loans. For Swiss residents, withholding tax is fully recoverable. For nonresidents, withholding tax is a final tax, unless the terms of an applicable double tax treaty specify otherwise.

Dividends received are taxed as ordinary income. However, if the recipient of a dividend owns at least 10% of the share capital of the payer company, only 70% of the dividend is taxable for the purpose of the federal income tax. Some cantons have adopted similar rules.

Rental income and royalties, as well as licensing, management and technical assistance fees, are not subject to withholding tax. With certain exceptions, they are included in taxable income and are taxed by the federal government, cantons and municipalities.

Taxation of employer-provided stock options. Under federal law, equity-based compensation schemes are taxed at vesting (restricted stock units), at exercise (stock options that are not tradable or restricted) or at grant (tradable and unrestricted stock options, and free shares). The cantons also apply these rules.

In addition, the equity gain is allocated to Switzerland based on the number of workdays performed in Switzerland during the vesting period.

Income derived from equity is taxed together with other income at ordinary tax rates. In addition, social taxes are levied on equity income.

The subsequent sale of the shares triggers no further tax conse quences because private capital gains are exempt from tax in Switzerland.

Capital gains and losses. Private capital gains derived from sales of movable assets are not taxed at the federal level or at the cantonal level. Capital gains derived from sales of immovable assets located in Switzerland are subject to a separate tax in all cantons.

For federal tax purposes, a gain or loss from a sale or exchange of business assets is treated as ordinary income or an expense item. For cantonal tax purposes, the treatment is the same, except that some cantons levy a separate tax on gains from sales or exchang es of immovable assets.

Deductions

Deductible expenses. Necessary expenses incurred in connection with employment income, maintenance and operating costs of real estate, any kind of debt interest, contributions to qualified pension plans, Swiss or foreign compulsory social security premiums, and other specific items are deductible from taxable income. For some expenses, tax-deductible amounts are standardized (insur ance premiums, education costs and lunch expenses). These rules apply for federal as well as cantonal and municipal taxes. How ever, other items may be treated differently among the cantons.

For expatriates (as defined), an annual deduction of CHF18,000 is allowed, which is intended to cover an expatriate’s housing and other expenses related to being an expatriate. Expenses in excess of CHF18,000 may be deductible if they can be proven. Other typical expenses of an expatriate, including moving expenses, may also be deductible.

Personal deductions and allowances. No specific personal deduc tions and allowances are granted to individual taxpayers, except some minor standardized deductions granted in most cantons (for example, deductions for children).

Business deductions. Nonresidents may deduct necessary expenses incurred in operating a business or profession and in the maintenance and operation of rental property.

Lump-sum taxation. Resident aliens who were resident or domi ciled abroad for the past 10 years may qualify for a special tax concession called lump-sum taxation if they do not engage in any employment or carry on a business in Switzerland. Activities out side Switzerland are not taken into consideration. The lump-sum tax is imposed on income imputed from the living expenses of taxpayers and their families (for example, by a multiple of rental value). The amount of lump-sum tax may not be less than the tax that would be payable on the sum of the following items:

• Income from Swiss real property

• Income from Swiss investments

• Income from any other property located in Switzerland

• Income from Swiss-source patents, copyrights and similar prop erty rights

• Pensions or annuities paid from Swiss sources

• Foreign income, if treaty exemption is claimed

Several cantons allow a nonworking resident to elect lump-sum taxation instead of regular income tax.

In certain cantons, lump-sum taxation is granted for only a limited number of years. In many cantons, eligibility for lump-sum tax ation and the method of calculating the tax payable are negotiated individually with the tax authorities rather than statutorily deter mined.

Rates. The maximum overall federal tax rate is 11.5%.

Cantonal tax rates vary considerably from one canton to another, although all rates are progressive. The tax rate consists of a base rate multiplied by a coefficient, which may change from year to year. The municipal tax rate is usually a percentage of the cantonal rate. Therefore, the overall rate varies within a canton, depending on the municipality where a taxpayer resides. In most cantons, a church tax is also levied as a percentage of the can tonal rate for taxpayers who are members of an official Swiss church community. Maximum cantonal and municipal tax rates range from approximately 12% to 36%.

B. Other taxes

Net wealth tax. No net wealth tax is imposed at the federal level. All cantons and municipalities levy net wealth tax on worldwide assets, except for real estate, a fixed place of business, or a per manent establishment located abroad. Tax rates are reasonably low and vary widely, depending on the canton and municipality where the taxpayer resides.

Inheritance and gift taxes

Cantonal taxes. No inheritance or gift taxes are imposed at the federal level. However, all cantons levy separate inheritance and gift taxes. Rates vary widely depending on the canton where the deceased or donor is domiciled.

In most cantons, resident foreigners are subject to inheritance tax and gift tax on worldwide assets, except for real estate located abroad. Nonresidents are subject to inheritance tax and to gift tax on real estate located in Switzerland only.

Treaties. To prevent double taxation, Switzerland has entered into inheritance tax treaties with the following jurisdictions.

Austria Denmark Finland Germany

Israel (only with Basel Stadt canton; declaration of reciprocity)

Liechtenstein (only with limited Swiss cantons’ declaration of reciprocity)

Netherlands Sweden United Kingdom United States

C. Social security

Swiss retirement benefits are derived from the following sources:

• The mandatory social security system (old-age and survivors’ insurance). Pensions are based on premiums paid and on the number of years worked. Benefits generally satisfy minimum living requirements.

• Company pension plans. Pension plans must be segregated from the company. These benefit plans complement the benefits of the Swiss social security program and are compulsory for employees subject to the old-age and survivors’ insurance.

• Individual savings.

Employees. The Swiss social security contribution rate is 10.6% of total salary, with no ceiling; the employer and employee each pay 5.3%. The employee’s share is withheld monthly by the em ployer. In addition, contributions at a rate of 2.2% on annual salary up to CHF148,200, and 1% on annual salary exceeding CHF148,200, must be made to the unemployment insurance fund. This cost is also divided equally between the employer and employee.

In general, employees who pay into the Swiss social security system must contribute to a pension plan. The employer must make contributions of at least 50% of the total contribution.

Contributions to both schemes are fully tax-deductible. Further more, contributions to special types of individual savings schemes are tax-deductible, up to a certain amount.

Self-employed individuals. Self-employed individuals must make social security contributions at a maximum rate of 10% of their income from their business or profession. The 10% rate also ap plies to partnership profits. Self-employed persons are not required to be members of a pension plan.

Nonresidents. Nonresidents who carry on a business activity within Switzerland (including serving on the board of a Swiss company) are subject to Swiss social security contributions on income derived from that activity, unless a social security treaty provides otherwise.

Totalization agreements. To provide relief from double social security taxes and to assure benefit coverage, Switzerland has entered into totalization agreements, which usually apply for a period of two years but may extend to five years, with the follow ing jurisdictions.

Australia Austria Belgium Bosnia and Herzegovina Brazil Bulgaria Canada Chile China Mainland (including the Macau SAR)

Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland India Ireland

Israel Italy Japan Korea (South)

Kosovo Latvia Liechtenstein

Lithuania Luxembourg Malta Montenegro Netherlands

North Macedonia

Norway

San

Turkey

United Kingdom

United States

Uruguay

Switzerland has also signed a totalization agreement with Tunisia, which is under a ratification process. Negotiations are in progress with Albania and Peru. For the United Kingdom, a new agreement is under approval for a provisional application.

Under the totalization agreements, if certain conditions are met, exemption from the Swiss social security system is available for a certain period if employees continue to contribute to their home country social security systems.

Under an agreement between Switzerland and the European Union (EU), Switzerland has applied European Regulation 883/2004 since 1 April 2012 (European Regulation 1408/71 before that date), which overrules the bilateral totalization agreements listed above with respect to Swiss and EU nationals.

Effective from 1 January 2016, EU Regulation 883/2004 applies to moves of European Free Trade Association (EFTA) nationals between Switzerland and EFTA countries (EU Regulation 1408/71 previously applied). A transition period of 10 years applies to ongoing situations.

D. Tax filing and payment procedures

Federal taxes are due 31 March of each year. Tax filing and pay ment procedures vary widely from canton to canton and depend on individual circumstances.

Married persons are taxed jointly, not separately, on all types of income.

In general, Swiss tax resident individuals have the obligation to file an annual tax return declaring their worldwide income and worldwide assets, including properties outside Switzerland. In all cantons, directors’ fees and payments by Swiss pension funds are subject to special withholding provisions (covering cantonal and municipal, as well as federal, income taxes).

E. Double tax relief and tax treaties

Income is allocated in accordance with rules developed by the Federal Supreme Court on inter-cantonal tax allocation, unless an applicable double tax treaty provides otherwise. In addition, certain cantonal rules may influence international income allocation. However, treaty law always overrules Swiss domestic law.

According to Swiss domestic law and treaty regulations, foreignsource income is excluded from taxable income if it is derived from a permanent establishment located in a foreign country (as defined by treaty law or, in the absence of an applicable double tax treaty, by Swiss domestic law). Also excluded is income derived from real estate located abroad. In addition, certain types of income, includ ing directors’ fees, special pensions and partnership profits, may be exempt in Switzerland under an applicable treaty.

In general, all other foreign-source income is taxable in Switzerland. In the absence of a treaty, foreign-source income on movable assets (for example, dividends on foreign shares) may be taxed net of any foreign income taxes or withholding taxes imposed on such income by the source country, depending on the circumstances.

Most of Switzerland’s income tax treaties follow the draft model of the Organisation for Economic Co-operation and Development (OECD). Switzerland generally applies the exemption-withprogression method rather than the tax-credit method for quali fied foreign-source income. However, a limited tax credit is granted, for remaining net foreign withholding taxes imposed on dividends, interest and royalties from the treaty jurisdictions listed below. The credit may not exceed Swiss tax due on the relevant income.

Switzerland has entered into double tax treaties with the follow ing jurisdictions.

Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belarus Belgium Brazil Bulgaria Canada Chile China Mainland Colombia Côte d’Ivoire Croatia Cyprus Czech Republic Denmark Ecuador Egypt Estonia Ethiopia Faroe Islands Finland France Georgia Germany Ghana Greece Hong Kong SAR

Hungary Iceland India Indonesia Iran Ireland Israel Italy Jamaica Japan Kazakhstan Korea (South) Kosovo Kuwait Kyrgyzstan Latvia Liechtenstein Lithuania Luxembourg Malawi Malaysia Malta Mexico Moldova Mongolia Montenegro Morocco Netherlands New Zealand North Macedonia Norway Oman Pakistan Peru

Philippines Poland Portugal Qatar Romania Russian Federation Saudi Arabia Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Sweden Tajikistan Thailand Trinidad and Tobago Tunisia Turkey Turkmenistan Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Venezuela Vietnam Zambia Zimbabwe

On 12 February 2018, Switzerland signed a double tax treaty with Saudi Arabia, which entered into force on 1 April 2021 and

will be applicable from 1 January 2022. On 5 March 2018, Switzerland signed a double tax treaty with Brazil, which entered into force on 16 March 2021 and will be applicable from 1 January 2022. On 23 November 2019, Switzerland signed a double tax treaty with Bahrain, which is not yet in force. On 29 July 2021, Switzerland signed a double tax treaty with Ethiopia, which is not yet in effect.

Special tax agreement for cross-borders due to COVID-19 pandemic. The tax treaties concluded between Switzerland, France, Germany and Italy provide for specific tax regimes for workers residing and working in the border area. To simplify their admin istrative procedures, most of these schemes allow the exclusive taxation of their wages in the state of residence.

In the exceptional health context of the COVID-19 pandemic and taking into account the recommendations and instructions of the public authorities, Switzerland and its neighbor countries agreed until 31 December 2021 that the days during which frontier workers are required to remain at home during this crisis should not trigger a change in their taxation. Consequently, these days will not affect the eligibility of cross-border workers for the spe cific tax regime.

F. General visa requirements for entry into Switzerland

Since 12 December 2008, Switzerland is an associated member state of the Schengen agreement and accordingly part of the Schengen area. The Schengen regulations apply to the entry and a stay of up to three months within a six-month period that is not subject to authorization. For individuals who are required to hold a visa, Switzerland issues Schengen visas for a stay up to 90 days within a 180-day period that are in principle valid for the whole Schengen area.

Foreign nationals require a valid and accepted travel document to enter Switzerland. In addition, a visa is required in certain cases. Foreign visitors who have entered Switzerland in compliance with the relevant regulations and are not taking up any form of employment (or if the gainful activity performed in Switzerland does not exceed eight days per calendar year) are not required to have a residence permit if the duration of their stay does not exceed three months within a six-month period. Their stay must not exceed a total of 90 days per 180-day period. For the purpose of the computation of this 90-day period, it is in principle neces sary to consider all stays in each Schengen state. Individuals requiring a visa must observe the duration of stay specified in their visa.

G. Work permits and work authorizations

General principles. Any foreigner who wants to perform a gainful (productive) activity in Switzerland must, in principle, be in pos session of an authorization. Any activity (self-employed or employed status) that normally procures a gain is a gainful activity, even if the activity is performed for free or if the remunera tion consists only of coverage of basic expenses.

Switzerland has the following dual system for the admission of foreign workers:

• The provisions of the Agreement on the Free Movement of Persons (AFMP) and its directives for European Economic Area (EEA) citizens locally employed in Switzerland

• The provisions of the Foreign Nationals and Integration Act (FNIA) and its provisions for non-EEA citizens and EEA citi zens seconded to Switzerland

EEA citizens. EEA citizens under local (Swiss) employment con tracts benefit from the AFMP and, accordingly, are entitled to obtain a work permit. They may perform a gainful activity in Switzerland as soon as they have registered in Switzerland. In the case of EEA citizens seconded to Switzerland, their employer needs to file a formal work permit application with the authori ties because they fall under the Swiss FNIA. Further require ments (quotas and minimum salary requirements) also apply to them (see below). They may only start working after having received the respective approvals from the Swiss immigration authorities.

As of 1 June 2019, the Swiss Federal Council has granted the full unrestricted free movement rights to Bulgarian and Romanian nationals and therefore abolished the quotas that were in force until May 2019. On 1 January 2017, the AFMP was extended to Croatia. Since then, special transitory measures with quotas and restrictions regarding the access to the labor market (priority clause for local workers as well as control of salary and work conditions) apply to Croatian nationals. These transitory mea sures will be in force until 31 December 2021, but they may be extended until 31 December 2023.

United Kingdom citizens. On 31 January 2020 the United Kingdom withdrew from the EU. In the withdrawal agreement between the EU and the United Kingdom, a transitional phase lasting until 31 December 2020 has been agreed on. From 1 January 2021, the AFMP between Switzerland and the EU no longer applies to the United Kingdom. From this date, UK nationals are no longer EU/EFTA nationals but are considered third-country nationals.

Switzerland and the United Kingdom signed an agreement on acquired citizen rights in 2019. The agreement is intended to protect the residence (and other) rights of Swiss and UK citizens acquired under the AFMP (until 31 December 2020). As a result of this agreement, these rights are preserved after Brexit and are in principle valid for an indefinite time.

UK nationals wanting to move to Switzerland after 31 December 2020 are not covered by the agreement on acquired citizens’ rights. At the moment, no additional bilateral agreement to cover this scenario has been concluded between Switzerland and the United Kingdom. For now, UK nationals moving to Switzerland after 31 December 2020 must meet the terms of the FNIA because they are considered third-country nationals. They are subject to quotas in such a case.

Non-EEA citizens. Switzerland’s immigration policy for foreign nationals is selective and restrictive in the sense that only a

limited number of executives, specialists and other qualified employees are admitted to work in Switzerland. The following significant criteria apply:

• Non-EEA citizens may be permitted to work only if it is proven, by way of a labor market search, that no suitable domestic employees or EEA citizens can be found for the job. Certain exceptions apply with respect to seconded foreign employees and international transfers of specialists and executives within a group of companies.

• Quotas limiting the number of work permits also apply (except for L-4-month/120-day work permits).

• Non-EEA citizens may be admitted to work only if the salary and employment conditions customary for the location, profes sion and sector are met.

Exceptions

Eight-day rule. In principle, citizens from non-EEA countries, as well as EEA nationals seconded to Switzerland, may work up to eight days in a calendar year in Switzerland without a work permit if the project in Switzerland is planned for a maximum duration of eight days (depending on the nationality, visa requirements may apply). However, depending on the location of the assigning company (EEA- or non-EEA-based company), the approach of the authorities related to the computation of the eight days varies. For employees of non-EEA-based companies, the eight days are counted per person. The eight days for EEA-based companies are cumulatively counted per entity and all employ ees.

For certain sectors, an online announcement or work permit application must be filed by the first day of activity. This rule applies to the following sectors:

• Construction, civil engineering and sub-trade or construction supply work

• Hotel and restaurant business

• Industrial or domestic cleaning

• Surveillance and security

• Travel and security

• Sex industry

Every gainful activity exceeding the eight days referred to above requires a work permit, an authorization or the filing of the appropriate announcement.

Business meetings. Business meetings may be attended without a work permit in Switzerland. However, only a very limited num ber of activities are considered to be a business meeting. According to the authorities’ practice, the following are consid ered the attending of a business meeting:

• Attending conferences as a listener

• Attending initial/introduction meetings with clients (no productive contribution to an existing project)

• Attending coordination/synchronization meetings

• Attending project coordination meetings

• Receiving training (not as a presenter; no training on the job)

• Attending contract negotiating meetings (without proposal or acquisition work)

• Signing of contracts

However, to be on the safe side, individuals should apply for a work permit. Because there is no legal definition of a business meeting, the authorities decide at their own discretion whether an activity is considered a business meeting or a gainful activity for which a work authorization is required.

Citizens of most non-EU countries also need a visa to enter Switzerland even if they “only” attend a business meeting. Online announcement. An online announcement applies to employees of EEA-based companies as well as EEA citizens working in Switzerland for less than 90 days.

Employers that are located within the EEA and that second EEA nationals (or foreign nationals included in the EEA labor market for at least 12 months) for less than 90 working days per calendar year must perform an online announcement to comply with Swiss immigration requirements. The 90-day quota is allocated per each foreign legal entity, employee and year. The online announcement must be processed eight days before the first working day in Switzerland. The online announcement confirma tion represents the work authorization.

The same principle applies if Swiss companies want to employ EEA citizens for less than 90 days per calendar year in Switzerland. In such a case, the 90-day quota is allocated per employee and year.

Once the 90 days are exceeded, a work permit must be applied for.

Quotas. Swiss law imposes a quota system that limits the number of available permits for third-country nationals, Croatian nation als and EEA nationals who are seconded to Switzerland for more than four months.

Change of employer, change of activity or change of canton. No authorization is required for locally employed EEA citizens to change employers. The same principle applies to foreign nation als holding a long-term B permit except in some circumstances. However, authorization is required for the following non-EEA nationals to change employers:

• Individuals who receive work permits for specific time-limited activities

• Individuals holding a short-term L permit (see Section H)

Locally employed EEA nationals holding long-term B permits can freely change from a dependent activity to an independent activity.

EEA and non-EEA citizens can in principle move their residence to another canton (a new permit will be issued by the new canton of residence). However, some non-EEA citizens are required to request a specific authorization from the cantonal authorities to be allowed to move their residence to another canton.

H. COVID-19

As a result of the global spread of COVID-19, Switzerland has implemented entry restrictions for foreign nationals coming from specific countries (“high-risk” countries) who do not meet cer tain entry criteria. Schengen and EU countries, as well as a few

non-Schengen/EU countries, are not viewed as high-risk coun tries anymore (meaning that the normal entry requirements apply to citizens coming to Switzerland from these countries).

For all other third-country citizens traveling directly from a highrisk country, it is only possible to enter Switzerland if at least one of the following conditions is met:

• The traveler is Swiss citizen.

• The traveler holds a travel document (for example, a passport or identity card) and one of the following:

A Swiss residence permit (L/B/C/Ci permit)

A cross-border permit (G permit)

A D visa issued by Switzerland

A C visa issued by Switzerland after 16 March 2020 in a valid exceptional case or in order to work on a short-term contract

Assurance of a residence permit

Confirmation of notification for the cross-border provision of services up to 90 days in any calendar year (for example, UK nationals)

• The traveler has rights of free movement. If a visa is required, a valid Schengen C visa, a valid D visa or a valid Schengen resi dence permit is sufficient.

• The traveler is in a situation of special necessity (see below). The border control authority will assess the necessity of the situation.

• The traveler has been vaccinated with a recognized vaccine. In this case, entry to Switzerland with a valid Schengen visa issued by any Schengen-state before 16 March 2020 is possible.

• The traveler is under 18 and traveling with an adult who has been fully vaccinated (parents, siblings, grandparents or other caregivers).

• The traveler is transferring in or traveling through Switzerland.

Travelers must be able to prove that they meet the abovemen tioned requirements.

The following are examples of special necessity:

• Entry by foreign nationals from third countries who are provid ing a cross-border service, for up to eight days in any calendar year or who are working temporarily in Switzerland for a for eign employer from a third country, provided that their per sonal presence is essential

• Entry because a close family member in Switzerland has died or is dying

• Entry to continue essential medical treatment that began in Switzerland or abroad

• Entry to care for close family members in a medical emergency

• Entry to visit immediate family members (that is, husband or wife, registered partner and minor children) who are living in Switzerland

• Entry to visit a partner to whom one is not married or with whom one is in a registered partnership and with whom one does not have children

Persons who require an entry visa must apply for one at the Swiss foreign representation for their place of residence, explaining why they are a case of special necessity. For persons who do not

require a visa, the border control officers at the Schengen exter nal border (that is, at the airport) decide whether the requirements of necessity have been met. Credible proof (for example, marriage certificate, certificate of residence or business docu ments) must be provided when an exception is claimed on the grounds of special necessity or public interest. Work permit applications (for short- and long-term stays) for all nationalities are generally accepted. Work permits are accepted based on the respective applicable laws (AFMP or FNIA).

Entry form. Before entering Switzerland, a special entry form must be completed. Everyone entering Switzerland must present the completed form (accessible via https://swissplf.admin.ch/ formular). Some exemptions apply (for example, for cross-border commuters or transit).

Vaccination/recovery status. For people who are not fully vacci nated or unable to prove that they have recovered from COVID19 in the last six months, test requirements apply in addition to the requirement to fill out an entry form. These people will be asked to provide proof of a negative PCR test or rapid antigen test twice:

On entry, a PCR test (not older than 72 hours) or rapid antigen test (not older than 48 hours) at the departure location is required.

Four to seven days after arrival, another PCR test or rapid antigen test in Switzerland is required. The result of this test must be reported to the cantonal authorities in the form of a COVID-19 test certificate.

I. Type of permits

Online announcement. Strictly speaking, the online announce ment is not a permit, but still required if EEA citizens/non-EEA citizens employed by an EEA-based entity work in Switzerland for less than 90 days. This also applies for EEA-citizens employed by a Swiss entity for less than 90 days per calendar year. For more information, please see Online announcement under Exceptions in Section G.

Short-term work permits (L permits). Short-term work permits (L permits) are 4-month/120-day permits, which do not fall under the Swiss quota system described above. Foreign nationals may take up short-term employment for a maximum of 4 consecutive months, or 120 days, spread throughout a 12-month period.

Typically, 4-month/120-day permits are granted to executives or specialists who are needed either once or periodically in Switzerland to perform time-limited tasks. However, Swiss law does not allow a system of rotating employees every 4 months or 120 days (for example, one employee comes for 120 days and is replaced by another, who is then replaced by another).

The second category of L permits is granted for a period between four months and one year and permits are generally issued for project-related stays or short-term assignments. Such permits are subject to quotas. After one year, the L permit may be extended for another year (24 months maximum in total).

The permit lapses if the permit holder gives notice of departure from Switzerland to the municipality’s local registration office, forfeits his or her residence, or lives abroad for more than three months.

Long-term work permits (B permits). Long-term work permits (B permits) are granted if an employment/assignment contract for an undetermined duration or for a duration greater than 24 months exists. B permits typically have a validity of five years for all EEA nationals and of one year for non-EEA nationals. The B permits are renewable until obtaining the C permit (see below). In the case of seconded EEA or non-EEA nationals, the B per mits are subject to quotas and are usually granted for one year and can be renewed annually.

The permit lapses if the permit holder gives notice of departure from Switzerland to the municipality’s local registration office, forfeits his or her residence, or lives abroad for more than six months.

Permanent residence permits (C permits). Permanent residence permits (C permits) are available in Switzerland to all foreign nationals who have lived in the country for a time period that varies depending on citizenship and bilateral treaties (five years of residence are required for citizens of most European countries and 10 years for most non-EU citizens). In general, foreign nationals need to be able to prove a certain degree of proficiency in the official language spoken at their place of residence (French, German or Italian) to be eligible for a C permit. Only certain EU nationals do not need to meet any language require ment; they are eligible for the residence permit C after five years of living in Switzerland.

C permit holders may engage in any legal activity in Switzerland. They may change their employment or profession without approval.

C permits are granted for an unlimited duration, but the permit card must be renewed every five years. The permit lapses if the permit holder gives notice of departure from Switzerland to the municipality’s local registration office, forfeits his or her residence, or lives abroad for more than six months. For stays abroad for up to four years, the permit may be maintained if an applica tion is filed in due time.

Cross-border commuter work permits (G permits). Cross-border commuter work permits (G permits) are granted to EU citizens who reside in an EU country while working in Switzerland under a local employment contract. Non-EU citizens who also reside in an EU country while working under a local employment contract in Switzerland can also benefit from a G permit, provided that certain conditions are met (they must reside near the Swiss bor der in an EU country and their place of work must also lie within a border region in Switzerland).

G permits are valid for five years. However, in the case of a change of employer, a new G permit will be issued.

The G permit lapses if the permit holder stops his or her employ ment relationship with the Swiss employer.

J. Family reunion

Family reunion under the AFMP. Family members of EU/EFTA nationals holding a B or L permit (valid for 364 days) are granted an EU/EFTA permit allowing them to join the principal applicant and reside in Switzerland, regardless of their nationality (even if they are third-country nationals). The following are family mem bers according to the AFMP:

• Spouses

• Children or grandchildren who are under 21 years of age or who financially depend on the applicant

• Parent(s) and grandparent(s), if they financially depend on the applicant

The spouse and children of an EEA citizen admitted in Switzerland for the purpose of family reunion are entitled to perform gainful activities in Switzerland regardless of their nationality.

Family reunion under the FNIA. The spouse of the principal beneficiary of an L or a B permit and unmarried children who are under 18 years may be admitted to Switzerland for family reunion. Family members of L permit holders may not undertake employment unless they have been granted permission to do so. The family reunion must be made within five years. For children over 12 years, the family grouping must be made within 12 months. Since 1 January 2019, family members of third-country nationals holding a B or C permit need to prove sufficient language skills (at least A1 oral level of the language spoken at the place of residence).