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Old 22.01.2007, 17:26
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Working in Switzerland without permit

Hi All

I have a general question, this may have been asked/answered before, but I could not find reference to it, if it has.

One of the contractors that I work with is on a three month contract at the company I have been working for 9 months. He is worried that he may not be legally working here.

The situation is as follows

1. He lives in Belgium
2. He has a three month contract with a UK company but working in Switzerland
3. He gets paid in Belgium.

Does he have to inform the Swiss Tax Authorities of his contract here?

Rgds Richard
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Old 22.01.2007, 19:47
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Re: Working in Switzerland without permit

Quote:
Hi All

I have a general question, this may have been asked/answered before, but I could not find reference to it, if it has.

One of the contractors that I work with is on a three month contract at the company I have been working for 9 months. He is worried that he may not be legally working here.

The situation is as follows

1. He lives in Belgium
2. He has a three month contract with a UK company but working in Switzerland
3. He gets paid in Belgium.

Does he have to inform the Swiss Tax Authorities of his contract here?

Rgds Richard
As long as he is only staying for 3 months no.
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Old 22.01.2007, 21:18
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Re: Working in Switzerland without permit

Sounds like a long 'business trip'. Technically I think that if you are performing work in a country and contracted for the position you should be taxed in the country you're working in. It would depend if he is a permanent employee of a Belgian/UK company and working here a bit for them or if he was hired as a contractor just to work in CH.

Also you would need to look into the tax treaty between Belgium and CH which would normally cover his type of situation. It should also cover what type of permit he needs, from the sound of it he is on a tourist visa (?) and I would guess that is a big no-no...
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Old 22.01.2007, 21:36
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Re: Working in Switzerland without permit

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Sounds like a long 'business trip'. Technically I think that if you are performing work in a country and contracted for the position you should be taxed in the country you're working in. It would depend if he is a permanent employee of a Belgian/UK company and working here a bit for them or if he was hired as a contractor just to work in CH.

Also you would need to look into the tax treaty between Belgium and CH which would normally cover his type of situation. It should also cover what type of permit he needs, from the sound of it he is on a tourist visa (?) and I would guess that is a big no-no...
This is actually simple. He is non-resident working on a short term assignment in Switzerland. He therefore pays tax in the country in which he either lives or is employed (this can be more complicated) and not at all in Switzerland. Furthermore he does not require a work permit at all as he is a non-resident travelling in and leaving to go home every week or so. It might actually be beneficial for him to pay tax in CH instead of Switzerland but that is another story. The answer to the question is simply no he does not need a permit, does not need to inform anyone and the tax treaties play no role in this case.
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Old 22.01.2007, 21:51
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Re: Working in Switzerland without permit

As a non-resident traveling to CH each week and truely remaining living in Belgium I agree, but none of that was indicated in the original post. From the post, he is living in switzerland for 3 months and he is working in switzerland for those three months (and not as a regular employee of a foreign firm in CH for a while as part of his normal capacity).

From the OP, it seems that a 'real' answer is desired, not the 'wink-wink' answer that will cause the least problems...what is done with that information is up to the OP's friend - I would say letting dogs lie is the the easiest, he can always claim ignorance if there is anything untoward and certainly the firm would have to take some responsibility, though it is very unlikely a problem would come up.

Of course for the real answer you can contact the swiss tax authorities, they get all creamed up over this type of stuff I'm sure...And if Richard is right then there is nothing to worry about.

Andrew
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Old 23.01.2007, 10:26
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Re: Working in Switzerland without permit

Hi All

Thanks for the replies and the advice given so far, I will pass this onto him.

just to follow up and though..... He has taken a short term rental (again 3 months), an does not always travell back to Belgium

Assuming the initial answer is correct and he is ok for the three months. What will happen if his contract is extended beyond this period? Will he be liable for TAX over the whole period?

Rgds Richard Taylor
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Old 23.01.2007, 10:32
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Re: Working in Switzerland without permit

to be honest paying tax in Switzerland -vs- Belgium is a no-brainer - Switzerland is far cheaper tax-wise
And with an EU passport and a job, it should be easy for him to get the permit.

Of course he needs to check what happens with respect to Belgian requirement if he no longer is resident there.
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Old 23.01.2007, 10:41
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Re: Working in Switzerland without permit

I can only assume he is paying taxes there... I suppose thats a whole other question!!
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Old 23.01.2007, 16:25
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Re: Working in Switzerland without permit

Im on contract here for no more than a year (thank god) but i pay swis taxes at the moment untill i return to the uk. I was aware of the permit thingie but i think my company sorted that out for me. I just carry round a white booklet thing with my beautiful picture in etc... has to be renewed every 6 months though
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Old 25.01.2007, 15:37
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Re: Working in Switzerland without permit

Quote:
Hi All

Thanks for the replies and the advice given so far, I will pass this onto him.

just to follow up and though..... He has taken a short term rental (again 3 months), an does not always travell back to Belgium

Assuming the initial answer is correct and he is ok for the three months. What will happen if his contract is extended beyond this period? Will he be liable for TAX over the whole period?

Rgds Richard Taylor
To be Swiss residence he must live in Switzerland and that location be the centre of his life. If he is only staying here in order to be able to easily work and it is cheaper to rent than stay in a hotel then this is also no issue. However, if his contract extends beyond 3 months then the relevance can change depending on the wording of the contract he has with the Belgium company. IF the Belgium company is an "agency" and he is working for the agency in Switzerland then there will be a major fine for the agency and some tax and health insurance issues for your friend... His liability for tax and health insurance will be for the entire period of emplioyment.

If however he is working say for Accenture BE as a consultant and it just so happens he will be working for say Nestle for the next 3 - 6 months in Switzerland then so what. No tax liability, no insurances no nothing.
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Old 25.01.2007, 16:04
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Re: Working in Switzerland without permit

Hi Richard


Thanks again for the information, I think the latter applies to him. I have given him the details of this thread, and he is following this with great interest.

Rgds Richard
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Old 18.11.2013, 12:14
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Re: Working in Switzerland without permit

I dig up this old forum to ask - do you know anything about this?

http://europa.eu/youreurope/citizens...s/index_en.htm

Working in Switzerland

All EU nationals need a work permit to work in Switzerland. This restriction will expire on 31 May 2014 - but may continue until 31 May 2019 for nationals of Romania and Bulgaria
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Old 18.11.2013, 12:24
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Re: Working in Switzerland without permit

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I dig up this old forum to ask - do you know anything about this?

http://europa.eu/youreurope/citizens...s/index_en.htm

Working in Switzerland

All EU nationals need a work permit to work in Switzerland. This restriction will expire on 31 May 2014 - but may continue until 31 May 2019 for nationals of Romania and Bulgaria
Hi mountains,

Not sure what your question is. There are several threads on EF about the quotas. Chock full of information as well as heated opinions.

Do a search for the word quotas (see the box in the upper right-hand corner) and browse through the threads to see if some match up with your questions. Some threads deal with the special treatment of Romanians/Bulgarians and others are more general. HTH
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Old 18.11.2013, 12:53
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Re: Working in Switzerland without permit

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If however he is working say for Accenture BE as a consultant and it just so happens he will be working for say Nestle for the next 3 - 6 months in Switzerland then so what. No tax liability, no insurances no nothing.
Many people have given wrong advice in this thread. This situation REQUIRES A WORK PERMIT regardless of what the taxability situation is, and not having can lead to fines for both the employee and the company. Huawei Switzerland had similar problems in the past and I am sure you can find some online articles on the topic.

Last edited by transeuropeancheese; 18.11.2013 at 13:47.
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Old 18.11.2013, 13:12
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Re: Working in Switzerland without permit

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I dig up this old forum to ask - do you know anything about this?

http://europa.eu/youreurope/citizens...s/index_en.htm

Working in Switzerland

All EU nationals need a work permit to work in Switzerland. This restriction will expire on 31 May 2014 - but may continue until 31 May 2019 for nationals of Romania and Bulgaria
The link doesn't work so I can't actually read it, but if you're quoting it the info's not quite right. Everyone who isn't a Swiss national always needs a work permit regardless of their nationality.

What this seems to be talking about is that for 5-year B permits that EU nationals are usually issued with there is currently a quota limit in place. This came into force on the 1st June 2013 and will expire on 31st May 2014. It means two things: firstly employers have to make sure they can't find anyone already living here who has a valid work permit to do a job before they can take on a "job seeker" EU national. Secondly if the quota limit is reached then an L permit for one year will be issued instead of a 5-year B permit.

https://www.bfm.admin.ch/content/bfm...r_schweiz.html

Since 2009 there have been quota restrictions on Bulgarian and Romanian nationals coming here to work and these will remain in place until 2016 at the latest.

https://www.bfm.admin.ch/content/bfm...rumaenien.html


Link's working now - so must have been a glitch somewhere.
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Old 18.11.2013, 13:14
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Re: Working in Switzerland without permit

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Hi mountains,

Not sure what your question is. There are several threads on EF about the quotas. Chock full of information as well as heated opinions.

Do a search for the word quotas (see the box in the upper right-hand corner) and browse through the threads to see if some match up with your questions. Some threads deal with the special treatment of Romanians/Bulgarians and others are more general. HTH
3Wishes, thank you for your feedback.

Now leave the Romanians and Bulgarians or from their perspective let's pretend it is already 2019.

The main question: which thread deals with that previously EU nationals had to have a work permit in CH onwards from mid 2014 they won't need one? The search did not help.

Maybe I am not familiar with the lingo. HTH?
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Old 18.11.2013, 13:20
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Re: Working in Switzerland without permit

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3Wishes, thank you for your feedback.

Now leave the Romanians and Bulgarians or from their perspective let's pretend it is already 2019.

The main question: which thread deals with that previously EU nationals had to have a work permit in CH onwards from mid 2014 they won't need one? The search did not help.

Maybe I am not familiar with the lingo. HTH?
No, you will still need a work permit. It's simply the quota limit restriction on 5-year B permits that runs out then. Nothing else is affected and frankly they should write their info better.
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Old 18.11.2013, 15:36
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Re: Working in Switzerland without permit

Just to clarify further. There is no separate work permit*. You get a resident permit with work or with out work.

*except the cross border G permit.
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