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Old 02.06.2017, 15:23
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Is "C" Permit linked to living or working in CH?

A colleague of mine is confronted with a very interesting situation that made me wonder.

He is Austrian, has a "C" Permit and may be offered a job in Munich, leaving his actual workplace of Zurich. The new company would pay for the rent in Munich, leaving him enough money to still keep his family, also on a "C" Permit, in an inexpensive rent in St. Gallen.

If he accepts the job, and works there during the week but comes back to St. Gallen only on weekends, will he still be able to keep the "C" Permit? Will he still be able to qualify for Swiss Residency after 10 years?

Because if the "C" Permit was linked to working for a company based in Switzerland, he would lose that. Yes if that was linked to living in Switzerland or at least going back to Switzerland at least once every two years (as is the condition to keep the "C" Permit), he would not.

What does the law say about it?
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Old 02.06.2017, 15:29
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Re: Is "C" Permit linked to living or working in CH?

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will he still be able to keep the "C" Permit? Will he still be able to qualify for Swiss Residency after 10 years?
Yes he can retain the C-permit for as long as he keeps renewing it every 5 years and does not announce his departure or transfer his place of legal residence to another country.
On the C-permit he is already a legal resident of Switzerland.

Last edited by koblenz; 02.06.2017 at 15:36. Reason: add
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Old 02.06.2017, 15:37
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Re: Is "C" Permit linked to living or working in CH?

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Yes. For as long as he keeps renewing it every 5 years and does not announce his departure or transfers his place of legal residence to another country.
On the C-permit he is already a legal resident of Switzerland.

....and providing he carried on paying taxes and social contributions in Switzerland, and continued paying health insurance etc etc and of course, providing his employer was ready to go along with the deceit and pay him enough so he could afford to pay all these taxes and insurances in Switzerland and in Germany.
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Old 02.06.2017, 15:41
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Re: Is "C" Permit linked to living or working in CH?

Presumably though he will pay taxes in Germany if he decides to acquire residence there as well. His CH income for tax purposes drops to zero. The family remaining in Switzerland would be paying taxes in CH on what they earn.
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Old 02.06.2017, 15:43
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Re: Is "C" Permit linked to living or working in CH?

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Presumably though he will pay taxes in Germany if he decides to acquire residence there as well.
In which case he will lose the C.

He must retain Swiss residence to keep the C.

Tom
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Old 02.06.2017, 15:45
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Re: Is "C" Permit linked to living or working in CH?

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In which case he will lose the C.

He must retain Swiss residence to keep the C.

Tom
He will only lose the C if he actually notifies a departure to the CH authorities.
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Old 02.06.2017, 15:47
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Re: Is "C" Permit linked to living or working in CH?

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Presumably though he will pay taxes in Germany if he decides to acquire residence there as well. His CH income for tax purposes drops to zero. The family remaining in Switzerland would be paying taxes in CH on what they earn.
in Switzerland the familiy is taxed as one entity. If you do such stupid shenigans as to pretend that you only have one, the Swiss residence, then all wordwide income is taxable. no income which "drops to zero"

Wochenaufentahlter is the proper way to do it. No fraud, no deceit, but still tax problem to be sorted and to be aware off.
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Old 02.06.2017, 15:52
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Re: Is "C" Permit linked to living or working in CH?

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usually it's the other way round (live in DE, work in CH).
The other way around would be a German or another nationality who is legally resident in Germany (or another country) but has a G-permit for CH and is employed in CH.

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in Switzerland the family is taxed as one entity.
Not always. If the family consists of a grandmother, an aunt and a nephew then I believe they will be taxed separately.
It is not specified in the OP's first post if it is a wife and children etc.

Last edited by koblenz; 02.06.2017 at 15:54. Reason: add
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Old 03.06.2017, 00:44
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Re: Is "C" Permit linked to living or working in CH?

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His CH income for tax purposes drops to zero
Clearly you have not the foggiest idea how tax investigations work! If you send in a zero return or fail to send in anything at all you will be flagged for investigation, simply 'cause people can't live on fresh air!
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Old 02.06.2017, 15:42
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Re: Is "C" Permit linked to living or working in CH?

What deceit?

If he returns home each weekend, or at least twice a month, there is no deceit.

"If he accepts the job, and works there during the week but comes back to St. Gallen only on weekends, will he still be able to keep the "C" Permit?"

Perfectly legal.

Tom
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Old 02.06.2017, 15:42
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Re: Is "C" Permit linked to living or working in CH?

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....and providing he carried on paying taxes and social contributions in Switzerland, and continued paying health insurance etc etc and of course, providing his employer was ready to go along with the deceit and pay him enough so he could afford to pay all these taxes and insurances in Switzerland and in Germany.
good point. given the German tax rate and Swiss costs of life, he must have a pretty good salary.

i would advise to negotiate tax consulting (both inital and each annual tax return) as part of the job offer
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Old 02.06.2017, 15:43
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Re: Is "C" Permit linked to living or working in CH?

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....providing his employer was ready to go along with the deceit.
Why would that be a deceit? Is it not living in a Country and working in another while having an apartment in both places?

It would be interesting to know whether to pay taxes in both places or not. I know that for some EU Countries you need to pay full taxes if you live most of the year there (happened at least with many Italian celebrities that paid taxes abroad while spending most of the year in their homeland).
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Old 02.06.2017, 15:44
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Re: Is "C" Permit linked to living or working in CH?

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will he still be able to keep the "C" Permit? Will he still be able to qualify for Swiss Residency after 10 years?


Yes, because he would be considered an Wochenaufenthalter and he center of life and permanent residence is Switzerland.

I think the income is taxable in Germany.
The other way round is common and lot of information is available. See http://www.wochenaufenthalt.ch/ But in general it is the same just a bit different.
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Old 02.06.2017, 16:39
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Re: Is "C" Permit linked to living or working in CH?

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YI think the income is taxable in Germany.
That's the default by OECD standards, but DE-CH Agreement on Doubletaxation (ADT) overrules and inverses that.

Analoguous to a German Grenzgänger working in Switzerland, OP (his friend) will be taxed 4.5% of income at source (that is, in Germany) while Switzerland will raise taxes as if he earned it in Switzerland (though additional deductions may apply), reducing the tax due by the 4.5% already paid to Germany.

Also by default (OECD standards I guess) OP would be in a difficult situation Permit-wise because he spends the majority of days (more than 183 per year) abroad. But not in this case as, again as per ADT rules, that will be ignored because
- distance from home is more than 110km
- apartment abroad is paid by the employer
Each of these points alone would be reason enough to qualify for ADT to apply, together they should make the case watertight. Additionally, for the Swiss authorities a commute of more than two hours one-way would be enough to qualify whereas the Germans seem to accept that criterion only if the time spent (available to spend) at home would be less than eight hours a day.

But of course:
OP, you do want to check this with both tax authorities, and of course make sure you retain the right to a C permit, before you sign anything.
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