(Mainly) remote freelancing for swiss company

eru · #1 09.01.2014, 18:31

Hi,

following situation:
I have a good customer, which probably would agree with remote working. We have not discussed this question exactly, but I think it would results in 49-51% (onsite-remote). It's about IT.

Remote means from outside of EU. But I have EU citizenship and I can come to CH anytime. My main domicile would be in the non-EU country. CH has double treaty agreement with this country and in sense of this agreement my "Betriebstätte" (main business office) would be in the non-EU country. I will also become registered freelancer in this country. As I understand, in this case I should pay my taxes in this country,

My question is: do I need some permissions in Switzerland? Is there in such construction some disadvantages which I should know about? any other hidden complications?

Thanks

Medea Fleecestealer · #2 09.01.2014, 19:21

It would depend on how you break up the time here I think. But a nearly 50/50 split isn't mainly remote working.

And where do you plan to stay while you're here? Would it be an hotel, or do you plan to rent a place of some kind?

More information on exactly how you plan to do this would be helpful.

eru · #3 09.01.2014, 20:52

	Quote:	Medea Fleecestealer
	It would depend on how you break up the time here I think. But a nearly 50/50 split isn't mainly remote working. And where do you plan to stay while you're here? Would it be an hotel, or do you plan to rent a place of some kind? More information on exactly how you plan to do this would be helpful.

We haven't discussed time of my presence, here but I think we could agree on 60/40. 40% in CH. Of working time! Holidays, vacations, project breaks I'll be outside of CH, of course

I don't that is really important. Important is what is my domicile. And I can define that myself, swiss fiscals cannot dictate me that.

Regarding staying: I would probably rent small flat or maybe a room in a WG. Here again, my "main" flat isn't in CH. Lebensmittelpunkt, you know

Here is the relevant passage from double treaty agreement

	Quote:
	Art. 14 Selbstständige Arbeit 1. Einkünfte, die eine in einem Vertragsstaat ansässige Person aus einem freien Beruf oder aus sonstiger selbstständiger Tätigkeit bezieht, können nur in diesem Staat besteuert werden, es sei denn, dass der Person im anderen Vertragsstaat für die Ausübung ihrer Tätigkeit gewöhnlich eine feste Einrichtung zur Verfügung steht. Steht ihr eine solche feste Einrichtung zur Verfügung, so können die Einkünfte im anderen Staat besteuert werden, jedoch nur insoweit, als sie dieser festen Einrichtung zugerechnet werden können. 2. Der Ausdruck «freier Beruf» umfasst insbesondere die selbstständig ausgeübte wissenschaftliche, literarische, künstlerische, erzieherische oder unterrichtende Tätigkeit sowie die selbstständige Tätigkeit der Ärzte, Rechtsanwälte, Ingenieure, Architekten, Zahnärzte und Buchsachverständigen.

Medea Fleecestealer · #4 09.01.2014, 21:30

You're unlikely to find anyone who'll rent a flat to you without a Swiss permit, that may apply to rooms as well. And you'd have to be careful of the 183 day rule too. How often would you go back to your main place? Frontalier rules state it has to be at least once a week for G permit holders which are the cross border commuters. Your situation is different I know as you'll be coming from a non-EU country so wouldn't qualify for a G permit anyway, but there may be some rules on this sort of thing.

The best thing you can do is enquire at the cantonal migration office where this Swiss company is based and ask them the best way to deal with this. The HR department of the company may be able to help too, once you've talked to your client about your remote working idea.

JayJayJay · #5 09.01.2014, 23:53

Also, if it is relevant to you, you need to have a certain number of customers throught the year to be considered as a freelancer, otherwise you'd be considered as a part-time employee of your customer. I may be wrong but I think this rules apply to every subcontractor/freelancer.

About renting a flat, real estate agencies will require you to have a working permit, while persons renting a room can care less. Hotel or hostel would only ask you for a passport to provide you service.

NotAllThere · #6 10.01.2014, 06:15

Domicile is one thing. Tax residency is another. It is entirely possible to be tax resident in more than one country. You don't really get to choose your tax residency.

With a 40% work split, assuming a 46 week year, you'd be in CH 92 days a year. If you commuted in on Monday, out on Friday, that would be 55 days. I think you may still need some kind of work permit, but you might not be tax resident.

Most likely when you're in Switzerland, you'll have to go through an agency or payroll company, or be an employee of your client. There's no particular reason I can think of why that shouldn't apply to the 40% only.

For the 60%, you just need to invoice your client from your home country.

Corbets · #7 10.01.2014, 07:33

Send an email to the tax authorities in the relevant canton. They're really quite helpful, and can give guy a definitive answer.

eru · #8 10.01.2014, 12:16

	Quote:	NotAllThere
	Domicile is one thing. Tax residency is another. It is entirely possible to be tax resident in more than one country. You don't really get to choose your tax residency.

Of course that is my choice where to pay my taxes. As long as some important conditions are filled - I do not have a permanent flat in CH, no permit, my wife and children do not live in CH, I'm staying here less then 183 days per year - nobody can force me to pay my taxes in CH.

In the most double treaty agreements self employed have to pay taxes in the country of residence. Maybe only one small part which can be assigned to the spend working time in CH. Maybe...

	Quote:
	Most likely when you're in Switzerland, you'll have to go through an agency or payroll company, or be an employee of your client. There's no particular reason I can think of why that shouldn't apply to the 40% only.

Working thru a payroll would make such a construction fully uninteresting for me.

I do not see why I should use a payroll. In this case I should declare here my main domicile to get a permit. That is definitely wrong for my situation.

As a freelancer, I can work in CH without special permits up to 90 days, that would be more then enough

nigelr · #9 10.01.2014, 13:22

You do not have to use a payroll if you are not living in Switzerland but you do if you are. The company may force you to go via a payroll company because it is easier for them, it depends on the company. In my experience the more complicated it is for a company to employ you the less likely they are to actually make it happen.