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Old 02.07.2021, 12:32
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Re: Swiss employment contract for EU resident

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I have an EU citizen, who has an interest in taking up a job offer, BUT wants to remain a resident within his home EU country but work on a Swiss employment contract.

Does anyone have first-hand knowledge of whether this is possible please? The hiring company is a legal entity in Switzerland. The potential employee is in an EU country that has a double taxation agreement in place with Switzerland.

I can see the attractiveness of this in theory for the job seeker, given Swiss personal tax rates are significantly lower than his home country, but I cannot imagine any tax authorities letting this kind of loophole to exist and missing out on tax revenues??

The job seeker is also open to receiving an employment contract instead from Germany, again where this company has a legal entity - but again, I would appreciate input from anyone who has direct knowledge of whether this is feasible?

Failing these options, I'm mindful that there are "umbrella" type companies that could cover this potential employee with a domestic employment contract in his home country, on their payroll rather than on the employer companies payroll (the employer does not have a legal entity in the EU country where the job seeker is a resident), but now we're talking silly money for fees...
So the candidate wants a Swiss salary to pay Swiss taxes, but live in a lower cost of living country? They are dreaming! You pay personal taxation based on where you live, not where your employment contract is.

The only way I know around this is when someone goes on an international assignment from Switzerland for a fixed period and the company agrees to equalise their taxes. This means you as the employer are paying the difference between the two tax rates.
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