The Albany Group - Workforce Solutions, Business Travel, Financial Services

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How much will this service cost me?

There is no additional cost to you as our fees are included in the invoice we submit to the client company you work for, unless your end client or Agency will not pay them. In which case we charge a flat hourly fee to you dependant on your nationality.

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Can I come to Switzerland to look for a job?

Yes, if you are an EU citizen. You can come to Switzerland as a tourist for 3 months; you will not need a residence permit for the first three months of looking for a job. If this takes longer, then you must apply for a permit for a further three months. This is assessed by the department of employment and may be extended for up to a year.

Non-EU citizens need a visa to enter Switzerland.

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Can I obtain a work / residence permit before I find a job?

EU citizens may apply for a temporary residence permit, but this will not include a work permit unless you find a job, at which time the work permit will be added to the existing residence permit. The type of permit you require is determined by your contract, which is part of the permit application documentation.

Non-EU citizens must have a job with signed contracts in order to get an entry visa and thus also a residence / work permit.

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What happens when I find a job?

Let us know as soon as possible and also indicate whether a UK recruitment agent is involved. We will then start the procedures for obtaining your work/residence permit.

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Can I start work before I have received a work / residence permit?

You may enter Switzerland to take up your employment on a provisional basis, but the residence permit must still be issued. Unfortunately, for non-EU citizens this is not possible.

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What documentation does Albany Switzerland need to obtain a work permit?

Non-EU Citizens:

The authorities will ask for many of the other documentation mentioned above in addition for tax, social security and child benefit, so please have this available.

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How long is my permit valid?

For EU citizens with a contract of less than a year, the length of your permit is determined by the length of your contract and you receive an L-permit showing that.

If your contract is for longer than 365 days, you will normally be issued with a 5-year B-permit.

For Non-EU citizens, the permit is directly linked to the duration of the contract.

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How do I get paid?

Albany Switzerland will pay your salary within 10 working days of receiving your approved timesheet.

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How much tax will I have to pay?

This is dependent on:

This will very often be significantly less than you would pay in your home country. We can evaluate this prior to your arrival in Switzerland.

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What other social charges do I have to pay?

You have to pay Swiss national insurance where the combined rate for employer and employee is about 20%.

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Can my family join me?

Yes. Under the new Bilateral agreements between Switzerland and the EU, your family have a right to come and live with you for as long as your own permit is valid. It is administratively simpler if the application for your family residence is made at the same time as your own, although their permits will often be issued later.

This applies to EU citizens only.

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Can my spouse work?

Yes, she or he also has the right to work, but is responsible for finding their own employment and arranging the addition of the work permit to their existing residence permit.

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Can I live anywhere in Switzerland?

Yes, you can, but you must always register your new place of residence with the local authorities.

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Can I claim child benefit for my family?

In principle you can. We will provide you with the necessary application form for the Swiss social security department to make a decision and authorise payment.

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What happens at the end of my contract?

We will provide you with an income and tax summary for the period of your contract as well as the documentation for you to receive the benefits of your pension plan. You will also be able to remain in Switzerland to look for a new job and will have the right to a residence permit for a further six months as well as the right to use government employment services.

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Can I bring my laptop?

Yes. It is rare to have to pay duty, but you must declare it at customs.

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What about other household and electrical goods?

Again, you have to declare things like televisions, stereo systems, washing machines. If you can prove that they have been in your possession for at least 6 months this is a big help in avoiding import tax. The basic rule is that personal property, that is used and intended for continued private use, is exempt from customs duty.

Personal property includes goods that the owner (immigrant) has used for private, occupational or trade purposes abroad for at least 6 months and that he or she will continue to use privately within in Switzerland, as well as general household goods of customary kinds and quantities. Duty exemption should be applied for when importing the goods. Later deliveries should be declared on the occasion of the first importation.

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Work Permits

It is strictly illegal to work in Switzerland without a permit!

If you work here without a permit you can be deported immediately and have your passport marked so that you can never return again. This has and does happen, so be warned.

Note: You must have an offer of employment before an application is made.

Albany will help you to obtain your work permit.

There are three types of permits in Switzerland.

L        This is a permit that allows you live in Switzerland for 12 months and seek work
B        This is a 5 year residence and work permit
C        This is a permanent residence and work permit

There are visa requirements for non EU nationals, these need to be looked at on a case by case basis.

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How will I be paid?

Switzerland does not recognise freelance or self-employed individuals or non-Swiss Limited company contractors.

The only way to conduct business as a contractor in Switzerland is to be “employed” by a company.

This can be your own Swiss GmbH (Swiss Limited Company), although the cost and time in setting one up is incredibly high compared with most other countries. Typically to go through the process costs around 30,000 – 40,000 CHF at the outset and then significant monthly running costs afterwards. Also, the tax breaks for GmbH company owners are very minimal and for most people, unless you are going to earn more than 500,000 CHF a year and stay in Switzerland long term, it is not worth forming a GmbH.

This accounts for the reason that the vast majority of “contractors” work through Employment Agencies in Switzerland who have Swiss pay roll facilities, or a pay roll solution company such as Albany (Switzerland) GmbH.

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Tax

There are 26 cantons (regional authorities) in Switzerland and each and every one has their own tax system.

The amount of tax you pay depends on which canton you live in, your age, the amount you earn, your marital status, the ages and number of children you have, your pension contribution, your ex pat allowance and your religion.

It is fair to say that taxation in Switzerland is highly complicated. However, it is generally, although not in all cases, lower than the EU countries.

We always provide our contractors with two sample payslips showing the variances depending on your elected pension payment.

Switzerland has a three part social security system for all employees, called the “three pillar” system. It consists of:

Obligatory insurance:

The following insurance premiums are obligatory for all employees in Switzerland and are automatically deducted from your gross monthly salary by your employer.

Please note: as a contractor you pay employer costs and employee costs.

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Dental Care

Dental care is very expensive in Switzerland comparative to the rest of Europe. It is advisable to have any routine work done outside of Switzerland, or take private dental insurance.

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Can I bring my car?

Yes, but your car will often have to undergo conformity tests for Swiss exhaust, noise, etc, regulations. The is called an "MFK" and is equivalent to but stricter than the British MOT. This is, however, also dependent on the duration of your stay. It may also work out more expensive than buying a reasonable second hand car while you are here. We have also been told that drivers who are staying for less than 12 months do not need to register their cars. Again, check this with the authorities. Other longer residencies definitely require a change. Vehicles can be exempt from customs duty if the owner commits him or herself to continue using the vehicle in the same manner for 12 months after importation to Switzerland.

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Buying a car

Firstly to buy a car and register it, you need your residence permit, the time that this takes to come through varies considerably, with canton Zurich taking two or three weeks, whereas the French Cantons can take up to six weeks.

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Driving Licenses

The minimum age for obtaining a Swiss driving license is 18 for cars and two-wheeled vehicles of 50 cc or more and 14 for two-wheeled vehicles less than 50 cc. In the majority of cases, you can use your foreign license if you have one, but you must abide by certain conditions.

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Validity of foreign driving licenses in Switzerland

You can use your foreign license for one year. Within this time, you are required to exchange your license for a national driving license, except if you have an 18-month authorization for residence. Holders of a certificate of incumbency are advised to contact the driving license office beforehand. Take note, however, that if you do not request a Swiss license within the first year, you will have to pass the Swiss driving test before you are authorized to drive.

Holders of an African (except South Africa), Asian (except Japan), Central and South American, Portuguese or Turkish license must pass a practical exam. If they fail the exam, they will be required to take the full exam, written included.

Required documents (EU or EFTA license):

You will receive your driving license a week later.

If you move within the same canton, you must send your license and vehicle registration papers to the Automobile Service of your canton for updating. If you move to another canton, you will have to request a new license from the Automobile Service of your new canton within the first 14 days of your move.

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Registering your car

Like in most countries, Swiss cars and other vehicles must be identified with license plates.
Conditions

To register your vehicle in Switzerland, you need to request license plates from the Automobile Service in your canton. If you buy your car from a garage, they will request the plates for you and take care of all the necessary procedures. You still need to provide a certain number of documents, however.

Any car sold within the European Community and that meets EU standards is automatically in accordance with Swiss law and can be imported without modification. Other vehicles, such as American cars, must undergo a specific inspection and conform to Swiss standards.

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Car Insurance

There are three types of car insurance in Switzerland:

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Third-party liability insurance

All vehicle owners are required by law to take out third-party liability insurance.

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Comprehensive insurance

People who are fully dependent on their vehicle and do not have the financial means to replace it quickly in the event of loss or damage should take out comprehensive insurance.

There is restricted coverage and fully comprehensive insurance.

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Passenger insurance

According to the Swiss Insurance Association (SIA), "Passenger insurance is particularly advisable when the vehicle owner frequently transports passengers who are strangers and s/he is uncertain as to their accident insurance coverage." Bon à savoir is a consumer magazine that does not share this opinion and puts forth quite convincing arguments against the passenger insurance.

In short, this is what is covered.

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Cost of Living

There is a general misconception that the cost of living in Switzerland is very high. In fact the standard of living is very high comparative to the cost of living. Prices in general compare favourably with those in the UK.

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Accommodation

Hotels vary hugely in price and it is normally a case of you get what you pay for. Be aware that Switzerland has a very significant transport infrastructure and hotels very near to tram and train stations are best avoided if you plan to live in them for any length of time.

Aparthotels are small apartments with a basic kitchen, a bathroom and are fully furnished. Often they include cleaning in the price. You do pay a premium to live in one of these and they are often in short supply during conference weeks or major events. Book well in advance if possible.

Furnished apartments are very scarce in much of Switzerland and always carry a heavy financial premium over unfurnished property. Also, they are often only available for short periods of time. Be aware that many Swiss owners of furnished property are reluctant to rent to non-Swiss tenants due to language issues and lack of references from Swiss individuals.
Unfurnished property is much easier to obtain and is in far greater supply. If you are contracting for three months or more then this is often a better option as basic furniture is very inexpensive in Switzerland.

Be aware that large deposits of up to three months rent are often required and that you will also be expected to pay one months rent in advance. If you find your property through an agent you will also be charged a finders fee, which can be high, so it is advisable to check in advance.

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Bank accounts

Once you have an address and a work permit, it is fairly easy to open an account in Switzerland. Typically you need to take a proof of address, your permit, your passport and your contract of employment. Please note that to obtain a credit card or loan, you will probably need a B permit. You need to attend the bank in person and it is advisable to use banks that have a good network of Bancomats (Cash Machines) as often other banks charge for using their machines.

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Transport

The public transport system in Switzerland is probably the best in the world and as such, a car is not essential if you live and work in one of the larger towns or cities. You can literally set your watch by train departures and arrivals. The trains, trams, ferries and busses are clean and safe and there are services available almost 24 hours a day in some places. Travel by public transport is very inexpensive compared with the EU countries. There are cards available for a limited cost that allows half price travel on all Swiss transport networks. Be aware that some of the Alpine railways are private and are slightly more expensive. Taxi travel is expensive, so use public transport where possible is good advice. Car hire and fuel are reasonably priced.

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Languages

Switzerland has several languages in everyday use. Swiss German is the most prominent with 67% of the population having this as a first language. The spoken versions differ considerably from high German and have many localised words. It is not uncommon for someone in Zurich to have difficulty in understanding someone from Bern! French is the next most common language followed by Italian and then Rato Romansch (a mountain dialect). English is spoken by many people as a second or third language.

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Books

We do recommend that anyone who is serious about living and working in Switzerland obtains a copy of “Living and Working in Switzerland” by David Hampshire. The book is produced by Survival Books Limited in London UK. Telephone 0044 20 7491 0604 and is available from most good bookshops.

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Disclaimer

Whilst Albany (Switzerland) GmbH makes every effort to provide accurate and relevant information, it must be pointed out that this document is a summary of information available from other sources and as such Albany (Switzerland) GmbH do not accept any liability for inaccuracies herein.