Relocating to Switzerland: a guide for entrepreneurs and families

Relocating to Switzerland is not just changing address: it means rebuilding your administrative, tax and social position in a new country, often while bringing a family and a business with you. The good news is that the steps are well defined; the less good news is that they must be done in the right order and within the set deadlines. Here is a reasoned guide for entrepreneurs and families.

First piece: the residence title

The right to settle depends on your citizenship. EU/EFTA nationals benefit from free movement and more easily obtain a B permit for employment, self-employment or residence on their own means. Nationals of third countries face a more selective route, subject to quotas and generally reserved for qualified profiles and projects of economic interest.

Anyone relocating to do business must decide whether to present themselves as self-employed or as a director of their own company: the choice changes the documentation required and must be coordinated with the incorporation of the business.

Registering your arrival with the municipality

Anyone arriving in Switzerland to reside there must register with their municipality of residence within a short deadline of arrival (usually a few days). It is a crucial step: this is where the population registration, the issuance of the permit and the link to local services all begin. You generally need an identity document, a rental contract, an employment contract or proof of activity, and your family members’ details.

Tax residence

Moving your residence to Switzerland generally means becoming liable to tax there on your worldwide income, with taxes at federal, cantonal and communal level. The tax burden varies considerably from canton to canton and from municipality to municipality: it is a factor worth assessing before choosing where to live.

Those who arrive without a settlement permit are often subject to taxation at source on their salary. You also have to manage carefully any remaining ties with your country of origin, to avoid situations of dual residence or double taxation.

Mandatory insurance

Two coverages must be sorted out straight away:

• health insurance (LAMal, the mandatory basic health insurance) is compulsory for anyone residing in Switzerland and must be taken out within a deadline of arrival, individually for each family member;
• social insurance (AVS/AI, the state pension and disability scheme, and any LPP occupational pension) is activated with your gainful activity, as an employee of your own company or as a self-employed person.

Health insurance is not the employer’s responsibility: it is a choice and an obligation of the individual resident.

The family: reunification and schooling

Relocation usually involves the family unit. The reunification of spouse and children follows its own rules depending on the permit of the holder. As for children, Switzerland offers a quality public school system, organised at cantonal level, with the language of instruction varying by region; private and international schools also exist. It is worth informing yourself early, because enrolment is tied to the municipality of residence.

A sensible order of steps

1. Define citizenship, type of permit and role (self-employed or director).
2. Choose canton and municipality, also assessing the tax profile.
3. Prepare the permit application and, if needed, incorporate the company.
4. Find accommodation and sign the rental contract.
5. Complete the registration of arrival with the municipality within the deadline.
6. Take out health insurance and activate social insurance.
7. Manage schooling and reunification for family members.

The typical mistakes

• Choosing the municipality without assessing the tax burden.
• Delaying the registration of arrival or the health insurance.
• Underestimating the remaining ties with your country of origin on the tax front.
• Setting up the permit and the company separately, rather than as a single project.

How we help you

The SIH ONE group handles relocation as a single project: permits, incorporation of the company, tax residence, insurance and family formalities, with a single point of contact. Talk to us about your relocation.