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Old 28.06.2011, 13:42
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temporary freelancing in Switzerland, tax residency in EU - what are the obligations?

Hi,

If I move to Switzerland for say 1 year, living in a rented apartment, what I have to do in regards to local authorities?

I would do freelance business (translations) with my tax residency still in my home country (according to the double taxation agreement between CH and my home country). The work would be performed in CH, but taxed and everything in my home country. As an EU citizen, do I still need to apply for work permit after three months when working as self-employed? Either way, do I have to report myself to police after some time?

Also, what are the rules for social and health insurance? For EU, there is e.g. this E101 form etc. which allows to pay insurance in the home country for a limited period of time (up to two years) instead of the country I momentarily reside in, does this also apply to CH? (I can for example use the European Health Insurance Card in Switzerland.)

Thanks for any hints!

Tomas
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Old 28.06.2011, 13:44
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

Welcome to the forum.
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Old 28.06.2011, 14:06
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

Why would you live in Switzerland and pay taxes in EU? It is the most expensive country on earth with very low taxes, doing it your way is the worst situation you can get.
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Old 28.06.2011, 15:19
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

Well Considering that CH isn't in EU, u cannot pay insurance elsewhere. It is compulsary while working here to ensure you have private health insurance. Earning money in switzerland and paying tax at home is not the smartest thing considering the low tax rate here. Unless u live somewhere with less tax.

Second you aren't allowed to earn money (swiss money) in switzerland while u reside here without a permit, unless u make all your earnings in a foreign currency? U need to first get an L permit to be able to look for work or an income. Is your country accepted in switzerland? Might help to know where you are from?

Anyway, don't take my word for it, it's best to check the actual swiss website http://www.swissemigration.ch/index.html?lang=en
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Old 28.06.2011, 17:47
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

You can only stay 90 days as a tourist before you need to register as a resident, get (or not) a permit & pay taxes. Cuz if you stay longer than that you're no longer visiting are you?
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Old 28.06.2011, 18:47
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

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Why would you live in Switzerland and pay taxes in EU? It is the most expensive country on earth with very low taxes, doing it your way is the worst situation you can get.
Well in my country as a freelancer I pay NO taxes until a certain threshold, actually I even get some money back then on children tax refunds.
As for expenses, so far I have not noticed it would be dramatically more expensive than some other EU countries near-by. And as long as I have some clients (some 90 % of these are from western Europe or US), I don't mind paying more than in my home country for a new experience for my family.

I will check the link posted, thanks.

miniMia, as I wrote the double taxation treaty CH-CZ does not impose the strict rule to become a (tax) resident after 90 days. There are several conditions to be met (or upon which one can voluntarily decided), and as my home country would still be my "centre of life interests" (as mentioned in the treaty - or how to rephrase that), I consider myself excluded.
Of course I can be some semi-resident, I would have a temporary Swiss address after all, but if there would be a strict 90 days limit for every case then most double taxation treaties would have no point in covering the residency rules?
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Old 28.06.2011, 19:06
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

Alright I found this here
http://www.swissemigration.ch/themen...jYh2+hoJVn6w==

Provision of services

The concept of providing services encompasses
the temporary exercise of a self-employed occupation without being resident in Switzerland
 the secondment of employees by a company domiciled abroad
 stays as recipients of services provided (for example by tourists, visitors to health resorts, people on business trips, etc.).

Services exceeding 90 days per calendar year are subject to the same provisions as services from Third States (see below).

Other countries (so-called Third States)
Self-employed persons or seconded employees require a permit if they work longer in Switzerland than eight days in a calendar year.

---

OK so Mia was right with this aspect. I'm not too clever though how after exceeding 90 days I can fulfill the condition to require the permit after working there longer than 8 days...

Also, I fail to see how does the position of 1-year service provider from abroad differs to the position of somebody registered to Swiss registrar of freelancers (whatever is the official name).
However assuming that in employees section they talk only about residence permit, the same condition would apply to self-employed? I.e. I can still be a tax resident elsewhere, only have to ask for the residence permit? What is assessed when asking for residence permit? Thanks once again for any hints.
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Old 28.06.2011, 19:20
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

All of your doubts would be resolved with a lot of good reading and searching on here. You seem to have a few false impressions.
Maybe you should read first and ask questions later when you have a fair idea of how things work here?

Oh and, welcome.
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Old 28.06.2011, 19:39
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

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As for expenses, so far I have not noticed it would be dramatically more expensive than some other EU countries near-by.
That's a joke right? I suggest you search the forum for some facts about how expensive it is in Switzerland. Rent is much higher, food costs are much higher as is insurance which you must have. A large number of people in Switzerland do their shopping in France or Germany because it is much, much cheaper.
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Old 28.06.2011, 19:55
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

I was going to do some freelance work here a few years ago and to get the resident permit as I will be here for over 3 month but more importantly I am EARNING MONEY here, I have to be employed by an umbrella company to get resident permit. The rate they charge was not bad but still a chunk. I have a good accountant in UK but still I will pay LESS tax if I live in Switzerland.

one more thing, have you been to London? what do you think of the prices of things? I use the simplest and crude illustration here. How much is a McDonald Big Mac cost at where you are? In London, it is around £4 but in Switzerland, it is around 11 CHF. That is about the bench mark for how much things cost. (except the public transport which is a lot cheaper in Switzerland).

If you are serious in moving, come over for a few visits and take a look see.

Welcome to the forum.
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Old 28.06.2011, 23:31
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

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All of your doubts would be resolved with a lot of good reading and searching on here. You seem to have a few false impressions.
Maybe you should read first and ask questions later when you have a fair idea of how things work here?
Sorry, I don't understand. If I would have a fair idea then I don't need to ask.

Yes, anything can be resolved with a LOT of reading etc., but my impression was that this is a forum - where people can help each other with some valid inputs to the core of the matter whatever the question is. I don't think to answer my questions would take much longer than your original post. Thank you.
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Old 28.06.2011, 23:58
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

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Well in my country as a freelancer I pay NO taxes until a certain threshold, actually I even get some money back then on children tax refunds.
If you pay no tax at home then you may find yourself owing tax in Switzerland. The point of double taxation agreements is that the tax you pay in one country is taken into account in any other country that believes you should be subject to its tax laws, so you do not pay tax twice on the same income. Typically you end up paying whichever is the higher rate.

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miniMia, as I wrote the double taxation treaty CH-CZ does not impose the strict rule to become a (tax) resident after 90 days. There are several conditions to be met (or upon which one can voluntarily decided), and as my home country would still be my "centre of life interests" (as mentioned in the treaty - or how to rephrase that), I consider myself excluded.
If you family is with you in Switzerland then it is very likely that your 'centre of life interests' would be considered by the authorities to be Switzerland. It's not an absolute rule but the location of your dependants is a key determinant.

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Sorry, I don't understand. If I would have a fair idea then I don't need to ask.

Yes, anything can be resolved with a LOT of reading etc., but my impression was that this is a forum - where people can help each other with some valid inputs to the core of the matter whatever the question is. I don't think to answer my questions would take much longer than your original post. Thank you.
If you want direct advice tailored to your situation then my advice would be to speak to a specialist tax accountant in Switzerland, not to ask non-expert strangers on the internet.
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Old 29.06.2011, 05:32
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

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OK so Mia was right with this aspect.
Excellent! I love being right!

Last edited by miniMia; 29.06.2011 at 05:50.
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Old 29.06.2011, 10:03
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

If your here for more than 183 days your are Tax resident in CH for sure, your ''centre of life interests" may mean you also tax resident elsewhere, depending on the other countries laws. The UK is very clear on that (for the last 18 months), other places less so.
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Old 29.06.2011, 10:43
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Re: temporary freelancing in Switzerland, tax residency in EU - what are the obligati

Of course we could give you a concise answer in less time.
We could say "Yes." or even "No."
That wouldn't be much help though.
You yourself could sift through the amazing quantity of info available to find what is relevant to you easier than we can give reliable information relevant to your situation.
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