Moving to Switzerland

Sending entity located in non-EU country

Non-EU/EFTA nationals and EU/EFTA nationals employed by a company located in a non-EU/EFTA country who are on assignment to Switzerland are granted 8 days per calendar year per individual during which they may work in Switzerland without a work authorization sector.

Sending entity located in EU country

For EU/EFTA nationals and non-EU/EFTA nationals employed by a company located in an EU/EFTA member state (12 months or longer for non-EU/EFTA nationals), the 8 days do not apply per individual but per legal entity. Therefore, each legal entity may send employees to Switzerland for a total of 8 days per calendar year without applying for a work permit for the respective employees.

Depending on the nationality, Schengen visa rules may apply.

In general, business meetings in Switzerland may be attended without a work authorization. However, only a very limited number of activities meet the definition of business meetings by the Swiss immigration authorities. According to the guidelines of the Federal Migration Office, the following activities are generally permitted under the term “business meetings”:

Theoretical trainings (excluding internship)

• Attending theoretical and technical courses at a Swiss-based company pertaining to sales, delivery, after-sales services with respect to technical facilities to customers abroad (e.g., training provided by a Swiss manufacturer to employees of a foreign client about the latest products sold)
• Attending theoretical courses
• Attending workshops
• Attending seminars and conferences

Other meeting types

• Representative visits of high-level staff
• Contract negotiations
• Internal meetings
• Supervisions
• Pre-assignment viSupervisionssit

Business meetings are by nature of very short duration and should not exceed two weeks. No operational work can be performed in Switzerland and the activity shall not constitute a gainful activity.

Switzerland has a dual system for the admission of foreign workers. EU/EFTA nationals benefit from the Agreement on the Free Movement of People if they have signed a local employment contract in Switzerland. Based on this Agreement, EU/EFTA nationals with a Swiss employment contract have the legal right to obtain a work permit for Switzerland. They can begin working the moment they are registered at the local town hall of their place of residence.

EU/EFTA nationals on assignment for over 90 working days and non-EU/EFTA nationals

Non-EU/EFTA nationals and EU/EFTA nationals on assignment for more than 90 working days per calendar year are not covered by the Agreement on the Free Movement of People and therefore a work permit must be obtained prior to entering Switzerland. Work permits are only granted to a limited number of high executives, specialists, and other highly-qualified employees. Furthermore, foreign nationals are only allowed to work in Switzerland if the Swiss common salary and employment conditions customary for the location, profession and sector are satisfied. In addition to the Swiss customary salary, the company must cover the costs for meals, accommodation and transportation for at least the first 12 months of assignment.

90 days online announcement

The online notification procedure is a simplified process under which any EU/EFTA-based company can assign any EU/EFTA national or non-EU/EFTA national working within the EU/EFTA labor market for at least 12 months to work in Switzerland for a maximum of 90 working days per calendar year. The 90 days are allocated per legal entity, assignee and calendar year.

The online announcement covers the work performed in Switzerland and no further formalities need to be observed (visa requirements may apply depending on nationality).

The online registration must be completed at least 8 days before the first working day in Switzerland. Swiss customary salary and mandatory assignment allowances apply.

L Permit up to 4 consecutive months/120 non-consecutive days within 12 months

If the online announcement is not sufficient, this type of work permit allows the foreign individual to work up to four consecutive months or 120 non-consecutive days in Switzerland over a 12-month period. This permit is not subject to quotas or registration.

Short-term L permit (for more than 4 months)

This type of work permit allows the permit holder to work in Switzerland for up to 12 months and can be extended to two years. The L permit is subject to quotas and expires once the employee deregisters from Switzerland or spends more than three months in a year outside of Switzerland.

Dependents can join the employee in Switzerland, but they will not automatically receive a work permit. If dependents of a person holding an L permit wish to work, a separate application needs to be filed by their employer.

Long-term B permit

This type of work permit allows the permit holder to work in Switzerland for up to five years and is generally granted for long-term assignments (at least two years).

For non-EU/EFTA citizens, the permit is usually issued for one year but can be renewed annually for up to five years (generally issued for five years for EU/EFTA nationals).

The B permit is subject to quotas and expires once the employee deregisters from Switzerland or spends more than six months in a year outside of Switzerland.

Family members can join the permit holder in Switzerland and will receive a work permit as part of the family reunion.

Cross-border permit (G permit)

EU/EFTA nationals with a local Swiss employment contract may receive a G permit to work in Switzerland provided that the employee returns to his/her place of residence abroad at least every week.

Non-EU/EFTA nationals are granted a G permit if they hold a permanent residence permit in a neighboring country and have had their regular place of residence in the border zone for at least six months. The workplace must be in the Swiss border zone.

Permanent residence permit (C permit)

The permanent residence permit may be issued after five or ten years of residency in Switzerland depending on the nationality. C permits are granted for an unlimited duration but the permit card must be renewed every five years.

C permit holders may engage in any legal activity in Switzerland. They may change their employment or profession without requesting approval from the Swiss immigration authorities.

The permit expires once the permit holder deregisters from Switzerland or spends more than six months in a year outside of Switzerland. For certain stays abroad (professional assignments, etc.), the permit can be suspended for a maximum duration of four years.

Speaking one of the four languages in Switzerland (German, French, Italian, Romansh) is considered a vital integration requirement. The language integration criteria apply to non-EU dependents of non-EU B permit holders. The individual must be able to understandably communicate in the official language spoken at his/her place of residence. To prove that the language requirements are met, the applicant must provide a recognized language certificate or a FIDE language passport.

The Swiss social security system is organized into three pillars with six different types of insurance coverages:

• Retirement and survivors’ insurance
• Disability insurance
• Unemployment insurance
• Accident insurance
• Health insurance
• Family allowance
• Income compensation allowance insurance (e.g., military service or maternity)

These insurances cover the population by means of financial benefits or by taking charge of the medical and integration costs in the event of illness or accident.

Old age, disability, survivors and income compensation insurance (OASI)

The first pillar state pension is a mandatory social insurance scheme which guarantees a minimum income after reaching the retirement age, in case of disability or for the survivors after the death of the insured person.

Contributions are due for (exceptions may apply):

• Non-working individuals holding Swiss residency as of 1 January of the year following their 20th birthday (unless they are covered under the contributions of their employed spouse)
• Gainfully employed individuals as of 1 January of the year following their 17th birthday
• People working beyond the ordinary retirement age
• Individuals working abroad on behalf of a Swiss employer

Although Switzerland does not have a cap on OASI contributions, it should be noted that the contributions are moderate compared with other countries.

The contribution rate for gainfully employed individuals is 10.6% with equal contributions by the employer and the employee.

Occupational pension insurance

Employees who earn more than CHF 22,050 per year are automatically insured by a second pillar pension fund. A self-employed individual can join on a voluntary basis. The intent of the second pillar is to allow for a reasonable lifestyle in combination with the first pillar after retirement. The maximum insured salary for pension under local law is currently CHF 88,200. The pension contributions vary between 7% and 18% of the insured salary (defined by law, with a cap) depending on the age of the employee, where at least 50% of the contributions must be covered by the employer. The individual has the option of making voluntary contributions to the second pillar and taking advantage of tax benefits involving conditions (buy-backs). Also, the employer may set up a pension fund which allows additional contributions.

Retirement

Upon reaching retirement age, the savings accumulated by the employee and the employer are converted into an annual pension using a conversion rate. The conversion rate for the mandatory part of the 2nd pillar (contributions paid on the insured salary up to CHF 88,200) is set out by law and currently amounts to 6.8%. In some specific circumstances (e.g., investing in real estate or in the event of a permanent departure from Switzerland depending on the new country of residency), a lump-sum capital payout before retirement is possible, but restrictions apply.

Accident insurance

All employees working in Switzerland are required by law to maintain accident insurance. Switzerland differentiates between occupational and non-occupational accidents as well as occupational diseases. Employees who work fewer than eight hours a week are only insured against occupational accidents and occupational diseases by their employer.

Furthermore, Swiss labor law requires employers to continue paying the salary to an employee for a limited duration in the event of an accident. The duration depends on how long the employee has been working at the company.

Contributions for accident insurance vary depending on the company’s risk level and economic sector. The contributions for occupational accident insurance are covered by the employer and for non-occupational accidents by the employee. For unemployed individuals, the accident coverage must be included in their health insurance policy.

The third pillar is a voluntary private individual option that can be used to help make up the remainder of an individual’s income not covered by the first two pillars. These schemes typically take the form of a retirement savings account (with tax breaks) or a flexible savings account (with few to no tax breaks).

• Third pillar A: Contributions are limited to a maximum of CHF 7,056 per year for any employed individual and to CHF 35,280 for individuals not holding a 2nd pillar policy. The third pillar constitutes a savings account and can also cover death and disability risks depending on the policy chosen.
• Third pillar B: Pillar B includes any other life insurance policies but usually features fewer restrictions than the third pillar A and contributions are not limited. This category of insurance is not tax‑deductible (although some exceptions apply).

Swiss income taxes are levied at three levels: Federal, cantonal and communal. Federal taxes are imposed by the federal government and are uniform across Switzerland. By contrast, cantonal and communal taxes can vary significantly. Tax rates are (usually) progressive at all three levels.

In addition to income taxes, wealth taxes are levied at a cantonal and communal level. The amount of net assets owned as of 31 December of each year is relevant for the calculation of wealth taxes. Wealth tax rates are also typically progressive and vary across Switzerland’s cantons and municipalities. There are several categories of recognized church affiliations for tax purposes in Switzerland and, depending on the canton of residency, church taxes could increase the total tax rate by up to 3%. New residents registering at the municipal office are therefore asked whether they also wish to register any church affiliation.

An individual’s tax residency status is relevant for taxation purposes. Domestic law establishes that an individual is a Swiss tax resident if his or her center of vital interest is in Switzerland and/or if the individual is present in Switzerland for a certain amount of time during the tax year.

If an individual qualifies as a tax resident of Switzerland as well as of another country according to the other country’s domestic laws, the double taxation agreement in place (if any) between Switzerland and the other country must be consulted in order to determine which of the two countries is afforded the right to unlimited taxation of the resident. The following flowchart is intended to summarize how the tax residency status in Switzerland is determined.

The duty to pay taxes in Switzerland is fulfilled by submitting a Swiss tax return or by way of taxes deducted at the source.

Swiss residents with a tax return filing obligation

Residents of Switzerland with a tax return filing obligation are subject to taxation on their worldwide income and worldwide wealth. Taxable income includes employment income and any other earnings (such as investment income, pension income, the deemed rental value of owned houses or income from real estate leased to tenants). Capital gains on company shares are generally not considered taxable in Switzerland as long as the taxpayer is not classified as a professional securities dealer. Foreign rental income is exempted with progression from taxation in Switzerland.

In addition to income taxes, all cantons levy a net wealth tax. The applicable tax rates are progressive and vary depending on the canton and commune. The tax rates usually range between 0.1% and 1% of the net wealth. For the determination of taxable wealth, all worldwide assets and debts (e.g., bank accounts, company shares and other securities, vehicles, real estates, mortgages) are taken into consideration. Foreign real estates are exempted from the Swiss taxation. Despite the exemption, the foreign property is declared in the Swiss tax return to determine the (progressive) tax rates.

The principle of family taxation states that the worldwide income (except employment income for a minor child) and wealth of a married couple must be declared in a joint tax return. In order to prevent discrimination of joint filers, different progressive tax rates apply for married and single persons. For married couples, higher deductions are typically granted such as personal and family deductions.

The tax year is identical to the calendar year. Individuals who arrive in or depart from Switzerland during the calendar year have a partial-year tax obligation. For Swiss tax residents with a tax return filing obligation, all recurring income will then be annualized in order to determine the applicable tax rate. Tax returns are generally due at the end of March of the following year. However, all cantons allow for deadline extensions.

Normally, the tax authorities issue a provisional tax bill based on figures from the previous year’s tax return. Some cantons require taxpayers to pay the provisional tax bill and will utilize the legal system against noncompliant taxpayers. In order to prevent interest charges from arising after payment due dates, it is recommended to pay the provisional tax bills also in those cantons that do not initiate legal action.

The standard processing time for issuing tax assessments and bills can take up to five years after submission of the tax return. The authorities issue final invoices showing any refund due to overpayment or any back payment owed. Outstanding amounts are generally due within 30 days.

Residents subject to withholding tax (tax withheld at the source)

Foreign workers (except for Swiss citizens and C-permit holders) who have their tax residence in Switzerland are subject to taxation withheld at the source. Taxes will be withheld by the employer and are directly deducted from the salary on a monthly basis. Taxes withheld at the source constitute the final tax liability in most cases.

However, there are two scenarios where an individual is obligated to file a Swiss tax return:

1. The annual (or annualized) gross salary exceeds CHF 120’000
2. Other income (such as investment income) or net wealth exceeds the threshold given by the cantonal tax authorities

For residents who do not fulfil the criteria mandatorily to switch to the tax return filing system, taxes withheld at the source equal the final tax liability. The source tax rate depends on personal circumstances (i.e., salary, marital status, number of dependent children, and church affiliation) and takes into account certain standard deductions (insurance premiums, business expenses, social security, etc.).

As of 1 January 2021, it is possible to file a subsequent tax return upon request.

• If a tax resident of Switzerland decides to file a subsequent tax return, this decision cannot be reversed and a tax return must also be submitted for all following years.
• A tax non-resident of Switzerland can decide every year if he or she wishes to file a subsequent tax return. An authorized representative in Switzerland is required for this.

The application must be filed by 31 March of the year following the tax period in question and deadline extensions are not possible. A correctly filed application cannot be withdrawn.

Swiss non-residents

Non-residents may be subject to Swiss taxes on various types of Swiss-sourced incomes. For example:

• Remuneration for an employment activity performed in Switzerland
• Interest or dividends paid by a Swiss entity
• Income from Swiss real estate
• Income from business activities in Switzerland

Generally, non-residents are required to file a tax return only if they own Swiss real estate or perform business activities (permanent establishment) in Switzerland. Otherwise, taxes are directly withheld at the source.

Furthermore, individuals who perform a part of their work outside of Switzerland are permitted to file a source tax adjustment in order to avoid the double taxation of workdays performed abroad.

Generally, Swiss law does not specify a particular form for employment or assignment contracts. Contracts can be concluded in writing, orally or even tacitly. If the employment agreement is concluded orally or tacitly, the employer must inform the employee in writing within the first month of employment about certain important points, including the position, salary, allowances, vacation, additional benefits, weekly working hours and termination conditions.

Exceptions apply for certain employment contracts (such as apprenticeship contracts) or contractual clauses deviating from the statutory provisions, which must be set forth in writing. However, in practice, employment contracts are usually concluded in writing and we highly recommend doing so in order to avoid any misunderstandings.

Please note that, according to Swiss law, there are in principle up to three different definitions of an employment relationship, depending on whether a labor law perspective, social security perspective or tax perspective is applied. Individuals may be considered as employees or as self-employed individuals and are hence subject to an employment or mandate/freelance agreement. The following provides an overview of the most important criteria, although this list is not exhaustive.

Under Swiss law, the employer is obliged to take all necessary and feasible measures to safeguard the health, safety and integrity of its employees. This responsibility applies from recruitment and includes different overarching duties, such as a duty of information (e.g., training and briefings, access to expertise), a duty of prevention (e.g., insurances against various risks), a duty of monitoring (e.g., safety and security information and documentation) and a duty of intervention (e.g., crisis and risk management, complaints mechanism, disciplinary procedures).

The payment of the salary is the employer’s main duty. The salary is usually paid at the end of each month, unless shorter periods or other terms have been agreed.

In general, the parties are free to determine the amount as well as the nature of the salary (base salary, bonus payments, provisions, other extra payments, etc.). Thus, no general mandatory minimum salaries must be adhered to. However, some exceptions may apply, i.e., if there is an applicable collective bargaining agreement (CBA) to the work relationship with particular requirements regarding the salary payment conditions, or if the employee is assigned from abroad to Switzerland due to the minimum salary requirements derived from the respective Swiss Assignment Act (EntsG).

If the employee, for reasons inherent to his or her person, such as sickness, accident or compliance with legal obligation, by no fault of his or her own is unable to perform his or her work, the employer must pay the corresponding salary for a limited period. If longer periods have not been fixed by agreement, the employer must pay the salary for three weeks during the first year of employment and for longer periods in following years, depending on the scale used. As an example, according to the scale of the canton of Berne (one of the most common scales in Switzerland) the employer must pay the salary for one month during the second year of employment, two months during the third and fourth year of employment, etc.

Employers therefore have a duty to protect employees against the financial consequences of an accident and must provide accident insurance that grants daily benefits to the employee from the third day after the accident, alongside other benefits. Although it is not mandatory, it is also common for employers to provide daily sickness benefits insurance, granting employees daily sickness benefits in case of illness following a specified waiting period, usually 30, 60 or 90 days. These obligatory salary continuance payments also apply for employees who are assigned from their home country outside of Switzerland.

Working time and time recording

Depending on the industry, the maximum weekly working time in Switzerland is set at 45 or 50 hours or is specified in an applicable collective bargaining agreement (CBA). However, parties may agree on a lower number of working hours, normally defined between 40-42 hours per week.

Generally, employees are required to work a reasonable amount of overtime if requested by the employer. Swiss law distinguishes between overtime, i.e., those working hours exceeding the contractual working time (up to the legal maximum of 45 or 50 hours per week) and extra working hours or excess time, i.e., working hours exceeding the legal maximum of 45 or 50 hours per week. Generally, overtime can be compensated by time off in lieu of overtime or by financial compensation. Parties often agree that neither a compensation nor a cash retribution is due.

Extra working hours shall be compensated by equivalent time off with the employee’s consent or paid with a premium of 25%, except that, in principle, for employee’s subject to a maximum legal weekly work time of 45 hours, and if this exception is specified in writing, no compensation nor retribution is due for the first 60 extra working hours per civil year. Extra working hours are normally only to be provided in urgent situations and should be limited to two hours per day.

The general daily rest time amounts to eleven consecutive hours, whereby a reduction to eight consecutive hours once a week is possible if an average of eleven consecutive rest hours is maintained over a period of two weeks. Further exemptions may apply, depending on the business or industry or sector. The following break times must also be observed: (a) 15 minutes of break time when working more than 5.5 hours, (b) 30 minutes of break time when working more than 7 hours and (c) 60 minutes of break time when working more than 9 hours.

In principle, employers are required to record employees’ working hours. The employer usually transfers this responsibility to employees, although the employer remains responsible towards the authorities. Exemptions may apply in certain circumstances and only if all conditions are fulfilled, for example, based on a collective bargaining agreement (CBA) or agreed simplified time recording.

These statutory rules also generally apply for employees assigned to Switzerland. However, working time regulations do not apply to higher executive management employees.

Sunday and night work

Work from Saturday, 11 p.m. until Sunday, 11 p.m. is considered Sunday work and is in principle prohibited. Exceptions require a permit by the competent authority and the employer may not require employees to work on Sundays without their consent. Depending on whether a permit for temporary or permanent/regular Sunday work is requested, certain conditions must apply – for example, an urgent need or technical or economic reason rendering Sunday work necessary. Employees who temporarily perform Sunday work must in principle be granted a salary premium of 50%, in addition to compensation of their working time in accordance with the law.

Work from 11 p.m. to 6 a.m. is considered night work and is also prohibited in principle. Exceptions to the prohibition of night work require a permit by the competent authority. Depending on whether a permit for temporary or permanent/regular night work is requested, certain prerequisites must apply – for example, an urgent need or a technical or economic reason rendering night work necessary. Employees who temporarily perform night work must in principle be granted a 25% salary premium.

Holidays and paid leave

Employees are entitled to at least four weeks of individual vacation within each year of service in addition to public holidays. Employees under the age of 20 must be granted five weeks of individual vacation within each year of service in addition to public holidays. Employers must pay the full salary during regular vacation. As a general rule, the vacation entitlement must be taken during the corresponding year and must include at least two consecutive weeks of vacation. During the term of the employment, no cash payment in lieu of vacation taken in kind is permitted. However, under certain conditions, payments in cash of outstanding vacation entitlements may be considered (for example, at the end of the employment relationship).

In addition to individual vacation, public holidays such as the federal holiday on 1 August and an additional maximum of eight cantonal holidays are granted to employees. Although it is not mandatory, it is common for employers to grant short paid absences based on the principle of proportionality, at least for full time employees (e.g., for weddings or registrations of civil partnerships, in case of death in the family or of close relatives, moving of domicile, childcare, medical appointments, etc.).

Statutory law further obliges the employer to grant paid leave in case of military or civilian service, in case of maternity and in case of paternity. Respective insurance schemes in principle cover the employer’s financial consequences if all conditions are fulfilled. Maternity leave amounts to at least 14 weeks and paternity leave amounts to 2 weeks to be taken within 6 months after childbirth.

Pursuant to article 340 Code of Obligations (CO), the parties may agree (in writing) that the employee commits to refrain from engaging in any activity competing with the employer’s business during and after the termination of the employment relationship, in particular neither to operate a business for his or her own account which competes with the employer’s business, nor to work for, or to participate in, such a business which competes with the employer. Such competition ban is only binding if the employment relationship has given the employee access to client information, or to manufacturing or business secrets, and if the use of such knowledge could significantly damage the employer’s business. The competition ban must be appropriately limited in terms of geographic area, duration and scope such that it does not unfairly compromise the employee’s future economic activities.

If the employment was agreed for a fixed term, it is terminated without notice upon expiration of such period. An indefinite duration employment contract may be terminated by each party by giving prior notice. The statutory notice periods are as follows: (a) one month for the end of the month during the first year of service; (b) two months for the end of the month from the second to the ninth year of service and (c) three months for the end of the month for ten or more years of service. Please note that these periods may be altered by mutual written agreement, but they may not be shorter than one month, except if specified in a CBA and only if they concern the first year of service. The same notice period must be set for both the employer and the employee.

In addition to the ordinary termination conditions, the employment relationship may be terminated with immediate effect at any time with good cause.

Statutory law foresees various compensation and further obligations in case of an abusive dismissal or in case of a dismissal at an inopportune juncture.

As a rule, the Swiss Federal Act on Private International Law (IPRG) provides the parties with the possibility of choosing the applicable law. However, for employment relationships, the Swiss legislator has set certain limits on the choice of law. Where no choice of law is made, the employment relationship is governed by the law of the state where the employee usually performs the work. The parties may choose to subject their employment relationship to either (a) the law of the state in which the employee has his or her usual residence or (b) the law of the state in which the employer has its establishment, its domicile or its usual residence. In case of international employment relationships, both for local employment and assignment agreements, the applicable law should be clearly and explicitly stipulated. However, the parties must be aware of the fact that, when choosing a law which is different from the one applicable at the employee’s habitual place of work (objective connection), the mandatory provisions of a competing legal system (e.g., the mandatory laws of Switzerland) may prevail and apply. Moreover, as a general remark, any choice of law must have some connection with the employment relationship.

Swiss regulations regarding matrimonial and inheritance law are primarily to be found in the Swiss Civil Code (CC). In addition, the Swiss Federal Act on Private International Law (PILA) contains rules for situations relating to more than one state and is therefore particularly relevant for foreigners and non-residents. It regulates both jurisdiction and applicable law. Please note that depending on the country you’re moving from, possible priority treaties must be observed.

If you’re moving to Switzerland as a married couple, your marriage validly celebrated abroad is recognized in Switzerland (art. 45 PILA). If you get married in Switzerland, the celebration of marriage in Switzerland is governed by Swiss law (art. 44 PILA).

Under Swiss law, marriage may be entered into by two persons who have reached 18 years of age and have capacity of judgement. Since 1 July 2022, marriage is also open to same-sex couples (art. 94 CC). Before the introduction of same-sex marriage, a so-called “registered partnership” was open for same-sex couples. Since 1 July 2022, this institute can no longer be established. However, existing registered partnerships can be continued without specific declaration and may therefore continue to exist in the future.

In Switzerland, the wedding ceremony takes place in the presence of the civil registrar (after completing a certain preparatory procedure). An additional religious wedding ceremony is possible and permitted, but may not take place prior to the civil ceremony (art. 97 CC).

Separation and divorce

If living together is no longer possible/desirable in a marriage, the spouses will usually take up the separation, i.e., one of the spouses moves out of the family home. For the time of separation, the spouses may either settle the circumstances themselves (particularly regarding joint children and financial terms) or, if this is not possible, with the help of lawyers or by judicial regulation.

If the separation affirms and the spouses decide to stay separated for good, there are two ways to achieve a divorce. Firstly, by Swiss law, a marriage can only be dissolved by the state civil courts (same applies for a judicial separation or revocation of the marriage; both rare in practice). On one hand, a divorce under Swiss law can occur if the spouses agree and submit a joint request to the court for dissolution of the marriage. If the spouses don’t agree on the divorce, each spouse may file an action for divorce on his/her own behalf. In this case, a previous separation of two years is required (there is an exception to this requirement if the continuation is no longer reasonable for serious reasons; high demands are attached to this).

In the event of a divorce, Swiss civil courts will examine whether there is a will to divorce. If this is affirmed, the court regulates the individual consequences of divorce. By Swiss law, these are the following (art. 119 et seq. Swiss Civil Code):

• Name: a spouse who has changed his/her surname on marriage retains that surname following divorce. However, the name may be changed to the name prior to the marriage at any time.
• Marital property law and inheritance law: click on the next buttons for more information.
• Family home: arrangement on which of the spouses remains resident in the family home
• Occupational pensions: Any occupational pension assets accrued during the marriage up to the time when divorce proceedings initiated are divided equitably (special rules apply in case of disability pension and retirement pension).
• Post-marital alimony: a spouse is entitled to this maintenance if he/she cannot reasonably be expected to provide for his or her own maintenance (incl. an appropriate level of retirement provision). In deciding whether such a contribution is to be made and, if so, in what amount and for how long, the court considers a list of categories (e.g., division of duties during the marriage, duration of the marriage, age and health of the spouses, income and assets of the spouses, extent and duration of child care still required of the spouses, etc.). Please note that the Swiss Federal Supreme Court has significantly tightened its requirements in this regard in the recent years.
• Children: if the divorced spouses have joint children who are still minors, the divorced spouses usually remain jointly responsible for them. They’re obliged to jointly provide maintenance for them. The court regulates parental rights and obligations; in particular: parental care, residence, contact or sharing of parenting duties and child maintenance contributions.

The marital property law is of particular importance in Swiss matrimonial law. It regulates all economical aspects during and after a marriage (art. 181 et seq. CC). Not only does it appear in case of a divorce (or judicial separation), but also if one of the spouses passes away, as under Swiss law a matrimonial dispute always takes place before assessing the inheritance dispute. Depending on the matrimonial property regime, the surviving spouse is entitled to a share of the deceased’s assets in advance, which is deducted from the calculation mass of the estate. Therefore, matrimonial property law has an influence on the calculation of the estate of a deceased person.

Swiss law governs a statutory system with three types of matrimonial regimes: the participation in acquired property regime, the community of property regime and the separation of property regime (see table below to find out more about the individual regimes). Other regimes are not foreseen and therefore invalid. Regardless of the regime, the spouses owe each other loyalty and support and are legally bound to jointly provide for the proper maintenance of the family, each according to his/her ability.

Swiss inheritance law knows a dual system of intestate and testamentary succession, i.e., there may be statutory heirs and/or appointed heirs (more on this below).

In either case, on the death of a person, his/her heirs become joint owners of the entire estate (universal succession). Therefore, all statutory and appointed heirs form a community of heirs. Further, the acquisition of the inheritance takes place automatically without any transfers or involvement by the authorities. All rights (e.g., claims, rights of ownership and rights of possession; subject to certain exceptions) and liabilities of the deceased pass to his/her heirs. Debts of the deceased become personal debts of the heirs (please note in this regard: statutory and appointed heirs are entitled to renounce the inheritance within three months after becoming aware of their inheritance). Both principles are mandatory law and cannot be prevented by a will (art. 560 CC).

Swiss inheritance law regulates who the deceased’s heirs are if neither a testamentary disposition nor a contract of inheritance exists. By testamentary disposition or inheritance contract, the legal succession may be modified within legal limits. The revised Swiss inheritance law entered into force on 1 January 2023. The core of the revision is the testator's freedom of action to comply with changed realities of life and family forms. The statutory succession remains unaffected by the revision of the law, whereas the forced heirship is being adjusted (more on this below).

Intestate succession:

• The intestate heirs are determined by the so-called “parentelic system”. There are three parentelas: the first parentela includes the descendants of the deceased person (children, grandchildren, etc.), the second one includes the parents with their descendants and the third one includes the grandparents with their descendants. More distant parentelas are not entitled to inherit. If the deceased leaves one heir of a closer parentela, the relatives of a more distant parentela are excluded from the legal succession. Within the same parentela, the respective heirs inherit equal parts (according to statutory inheritance law, subject to contrary dispositions).
• Surviving spouses and registered partners are also intestate heirs, but they’re not part of a parentela. They must share their claim with members of a possible parentela. How much remains for them depends on who they’re sharing with (art. 462 CC):
  • If they share with members of the first parentela: they receive 50% of the estate
  • If they share with members of the second parentela: they receive 75% of the estate
  • With members of the third parentela, they don’t have to share and receive the entire estate.
• If the deceased leaves no heirs, his/her estate passes to the state authority (art. 466 CC).
• Please note that domestic/unmarried partners are not intestate heirs and therefore have to be favored by testamentary disposition or inheritance contract to receive any participation. If such persons shall be considered as beneficiaries of an estate, the respective tax laws need to be taken into consideration as so-called third parties are taxed at a higher rate in most Swiss cantons whereas intestate heirs can mostly inherit tax free.

Testamentary succession:

• A person is capable of disposing his or her property, if he/she has capacity of judgement and is at least 18 years old (art. 467 et seq. CC). Under Swiss law, the disposal is possible in the form of a testamentary disposition (i.e., a last will) or in the form of a contract of inheritance (art. 498 et seq. CC).
  • Content-wise, the testator has several types of disposition; namely naming of heirs, burdens and conditions, legacies, etc.
  • The testator may make his/her will in the form of a public deed (made by a public official/notary/other authorized person), as a holographic will (must be handwritten by the testator from start to finish, include a date and be signed by the testator) or in oral form (if the testator is not able to use any of the other forms due to extraordinary circumstances; e.g., imminent risk of death).
  • By contract of succession, the testator can commit him- or herself  to bequeath his/her estate or a legacy to the contractual partner or a third party. Testamentary dispositions or gifts that are incompatible with obligations entered into under the contract of succession are subject to challenge. The testator may also conclude an inheritance renunciation contract with an heir with or without valuable consideration (art. 494 et seq. CC).
• The extent of the ability of disposal depends on whether the testator leaves descendants, parents, a spouse/registered partner or not. If not, the testator may dispose of his/her entire property by testamentary disposition. If he/she does bequeath any of the mentioned, the so-called compulsory portions must be observed.
• Under the forced heirship principle, the compulsory portion is a quota of the statutory hereditary title, i.e., a “minimum” in which the testator may not intervene (art. 470 et seq. CC). This rate is an important component of the revision as of 1 January 2023 (see the changes in the table below).

• If the testator has exceeded his/her testamentary freedom, those heirs who don’t receive the full value of their compulsory portion may sue to have the disposition abated to the permitted amount. However, if no such claims are asserted, the testamentary disposition is principally valid despite these violations.
  • During his or her lifetime, a person is generally free to dispose of his or her assets; he or she may also make gifts or other free disposals of assets. However, if such pecuniary advantages are granted to intestate heirs, they are subject to a legal equalization (art. 626 et seq. CC). The law contains different rules depending on the category of heirs as to what the heirs must deduct from their share of the inheritance.
• If an interested heir or legatee has the apprehension that the deceased may have lacked testamentary capacity or the testamentary disposition may be a product of lack of free will or its content/a condition attached to it may be immoral or unlawful, he/she has the possibility to bring an action of declaration of invalidity before court (art. 519 et seq. CC).

Please note that, while there is no federal inheritance tax, most cantons claim an inheritance tax. However, spouses and direct descendants are often exempted from it.

According to PILA, Swiss courts – both in the event of divorce and death – generally have jurisdiction and apply Swiss law in many cases, especially if no action is taken. In detail:

In case of divorce:

• According to PILA, Swiss courts have jurisdiction in case of divorce if the defendant is resident in Switzerland or if the plaintiff has resided in Switzerland for at least one year or is a Swiss citizen. Swiss courts will apply Swiss law; the subsequent effects of divorce and separation are also governed by Swiss law (see above; art. 59 et seq. PILA).
• Regarding marital property law specifically: Swiss courts have jurisdiction. However, spouses have the possibility of choosing a martial property law. The choice must be agreed in writing or result with certainty from the provisions of a marriage contract. They can choose from different laws: (a) the law of the state in which they are both domiciled or will be domiciled after the celebration of marriage, (b) the law of the place of the celebration of marriage or (c) the law of a state of which either of them is a citizen. In the absence of a choice of law, the law of the state in which both spouses are resident will apply. If they reside in different states, the law of the state they were last resident at the same time will apply (art. 51 et seq. PILA).

In case of death:

• Swiss courts/administrative authorities have jurisdiction if the deceased’s last place of residence was in Switzerland. The estate will generally be governed by Swiss law. However, if the testator is a foreigner, he/she may submit his/her estate by will or contract of succession to the law of one of his/her states of citizenship (such submission lapses if, at the time of death, the deceased was no longer such a citizen or acquired Swiss citizenship (art. 86 et seq. PILA). The validity of the will shall also be governed by the Hague Convention on the Form of Testamentary Dispositions.

The relevant law is the Federal Act on the Acquisition of Real Estate by Persons Abroad, the so-called Lex Koller. Under certain conditions, it stipulates an authorization requirement for the acquisition of real estate. In particular, the authorization requirement is linked to three conditions that must be fulfilled cumulatively: 1) the acquirer is a person abroad within the meaning of the Act, 2) the transaction qualifies as an acquisition of real estate, and 3) the object of the legal transaction is a real estate property.

Lex Koller restricts the acquisition of real estate in Switzerland by foreign nationals and by foreign companies. With regard to natural persons, this means that Swiss citizens, regardless of whether they live in Switzerland or abroad or whether they are double citizens, are not covered by the scope of application of the Lex Koller and can therefore acquire Swiss real estate without any limitations. In addition, EU and EFTA citizens who are legally and actually resident in Switzerland, as well as citizens of other foreign countries who are actually resident in Switzerland and hold a valid C residence permit, are not considered to be persons abroad. They can therefore also acquire real estate in Switzerland without restrictions. On the other hand, any foreigner who does not meet the requirements mentioned is considered a person abroad.

Legal entities may also qualify as a person abroad within the meaning of Lex Koller and thus be subject to the authorization requirement. Legal entities having their legal seat abroad are always considered persons abroad and are thus subject to the authorization requirement. However, companies domiciled in Switzerland may qualify as a person abroad if they are controlled by a person abroad. This is the case if a person abroad can decisively influence the administration or management of the company - either alone or together with other persons abroad - due to his or her financial interest, voting rights or for other reasons. Thus, Lex Koller cannot be circumvented by indirectly acquiring real estate through a Swiss company.

Probably the most important exception concerns the purchase of principal domiciles, according to which a residential unit can be purchased without authorization. For this, a written application together with the required supporting documents must be submitted to the relevant canton to confirm that no authorization is required. However, only one residential unit can be purchased for this purpose, which is why the purchase of a multi-family house, for example, is not possible, and the land area must not be larger than required for the intended use. In addition, the real estate must be actually used as the main residence within six months as of the notarization of the purchase contract, which is why the center of residence has to be moved to Switzerland by then.

Another exception concerns business premises. Premises that serve a commercial purpose can be acquired by persons abroad without authorization. However, the use of real estate for residential or rental purposes does not constitute a commercial purpose within the meaning of Lex Koller.

There are further exceptions for legal inheritors, certain relatives, spouses, purchasers who already have co-ownership or full ownership of the property, condominium owners for the exchange of their units in the same property and EU and EFTA cross-border workers for a second home in the region of their place of work.

The acquisition of shares in a real estate company which is listed on a Swiss stock exchange is not subject to Lex Koller legislation. However, the acquisition of shares in real estate companies which are not listed on a Swiss stock exchange and whose purpose is to acquire or hold residential real estate or other real estate which is not used for business purposes is not permitted for persons abroad. The percentage of real estate held by the company which requires authorization compared to the remaining assets of the company is a key factor in this regard. Since there is no specific threshold value, a detailed analysis must be made in each individual case. However, authorization is most likely to be required for residential real estate percentages ranging from 10 to 20 percent.

Finally, in some cantons, the purchase of holiday apartments is exempt from the authorization requirement. These cantons are Appenzell Ausserrhoden, Bern, Freiburg, Glarus, Grisons, Jura, Lucerne, Neuchâtel, Nidwalden, Obwalden, St. Gallen, Schaffhausen, Schwyz, Ticino, Uri, Vaud and Valais. There are, however, threshold values for area sizes: the plot must be less than 1,000 square meters and the net living area less than 200 square meters in size. Living area is defined as all habitable and heated rooms including saunas, swimming pools and hobby rooms but not balconies, cellars and attics. The acquisition of holiday apartments by persons abroad is subject to a quota which applies for the whole of Switzerland. Only approximately 1,500 holiday apartments a year may be sold to foreign nationals who are not resident in Switzerland, whereby the number of apartments available in each canton varies significantly.

In conclusion, it can be said that persons abroad can only acquire real estate in Switzerland if one of the exceptions listed here applies. Otherwise, the acquisition would be subject to the authorization requirement under Lex Koller. In case of disregard of these stipulations, the legal consequence would be the voidness of the purchase contract. In addition, if incorrect statements to the authorities have been made, a prison sentence of up to three years or a fine may be imposed.

The former industrial quarter of Zurich West is undergoing a unique transformation like no other part of the city. This quarter is full of contrasts and has an unpolished charm. Where once stood an industrial center, there is now the trendy quarter of Escher Wyss, home to design, food, culture shopping and architecture. On the other side of Zurich West reigns the 126m high Prime Tower with the best view over the city. This is definitely one of my favorite places in Zurich to stroll around and explore.

Gabriella Loosli (Manager, Social Security)

One of the things I love to do in Zurich is taking a walk down the lake promenade to enjoy the breathtaking view. There are plenty of spots to sit along the water and the atmosphere is stunning when the sun sets. My personal favorite is the western shore of the lake. It’s a little less prominent, but just as nice for a stroll. Start at Bürkliplatz – a popular site for events with a dock and a view across Lake Zurich to the Alps – and walk along the lake where you will pass some excellent restaurants. Along the way, you’ll see a remarkable fountain – the Aquaretum fountain at Zurich Enge harbor. The shape and size of the water feature are determined by an algorithm that interprets real-time data of earthquakes around the world. With a bit of luck, you might even see smaller scale earthquakes happening in Switzerland. On Tuesday and Friday morning, there is a market at Bürkliplatz which is always worth a visit. The place is packed with regional traders selling herbs, buckets of cut flowers, and food, ranging from fruit and vegetables to delicious chocolate buns. Get there early to enjoy the best selection of flowers.

Fjolla Gjaha (Manager, Tax)

To me, as a born and raised Basler, this city truly is my hometown. I love the mix of the city – it’s big enough that you can basically find whatever you need, but small enough that it doesn’t feel like a huge city (with less than 200,000 inhabitants, it truly isn’t). Beautiful spots to visit include Münsterplatz on an elevated spot in Basel with the beautiful Basler Münster and the adjacent Pfalz – a scenic spot with a lovely view all over Kleinbasel. Being a father of three myself, Basel is also a great place for children and families. Some of the best playgrounds for children are located at Kannenfeldpark and Johanniterpark. The latter features a huge goose to climb whose neck is a slide going to the ground. Basel is also well known for its wide variety of museums, be it classic or modern art, museum of natural art, or a museum dedicated to the kinetic art of Jean Tinguely. He created probably the most well-known fountain in Basel – the Fasnachtsbrunnen, which most people just call the Tinguelybrunnen. In the old part of the town, you can also find the smallest museum in Basel – it’s housed in a door and only contains items that fit in a Hoosesagg, a trouser pocket.

Patrick Businger (Senior Manager, Tax)

There are many enjoyable aspects of living in Basel, but one of the highlights is the Rhine river and its bank on the Kleinbasel side. No matter what time of the year, it is always worth going for a stroll along the river. For some it serves as a jogging route with a great view all year round and for others it is a place to go and just sit to enjoy the view. For everyone in Basel, however, it is a place that they call home. In the warmer months, you can swim down the Rhine from Eisenbahnbrücke all the way to Dreirosenbrücke. All along that path, you will find stands offering food and drinks, as well as the popular swimming bags that help you keep your things dry on your swim. If you keep walking along the riverbank, you will eventually get to the port area that has been transformed into an alternative space with quirky bars and a free-spirited ambiance. A must for all that enjoy a good time.

Edwin Trynes (Assistant Manager)

There is only one Swiss mountain called “Queen of the Mountains”: Mount Rigi. She lies in Central Switzerland between Lake Lucerne, Lake Zug and Lake Lauerz and the views are breathtaking. There are several cog railways and aerial ropeways, but I personally prefer climbing Mount Rigi by foot. Start in Küssnacht am Rigi (445 masl) and hike to Seebodenalp (1030 masl) where you can enjoy a beer from the brewery at Seebodenalp at a restaurant of your choice. If you have had a few too many, you can always stay at Seebodenalp and explore it further – as you will find upon arrival, it also has its charm. Otherwise, start climbing Mount Rigi (1797 masl). There are several hiking trails – I have found my favorite and so will you, but always stay safe. Once you are at the top (Rigi Kulm), congratulate yourself and enjoy the view. Explore Mount Rigi and if you would like to unwind and pamper yourself, extend your stay and enjoy relaxing at one of the numerous spa hotels.

Lea Müller (Manager, Tax)

As capital of Switzerland and UNESCO world heritage, Bern has a lot to offer apart from the buildings and monuments known from travel guides such as the Münster, Zytgloggeturm, Bundeshaus and the Gerechtigkeitsbrunnen.

To really get to know Bern, you have to have experienced at least one cup of coffee, a beer or any other refreshment in or at the end of the old town. There, you may have a view of the longest river in Switzerland, the Aare, and the bears in the bear park, or have a swim in the Aare and an aperitif in one of the many pop-ups that can be found along the riverbank inviting you to linger, while at the same time you may enjoy the wonderful mountain view. “Lädele” (Shopping) under the arcades in the old town of Bern is also always an experience regardless of weather conditions or season.

In summer, people like to meet in one of the famous azure blue river baths (Marzili, Lorraine, Muri, Eichholz) and treat themselves to an ice cream from one of the absolutely delicious ice cream parlors of the city.

At Christmas time, the Sternenmarkt (“star market”, a well-known Christmas market) on the “kleinen Schanze” (small viewing platform) is also highly recommended. There you will find lovingly designed huts with many sustainable and local products.

Marc Philipp Gugger (Director, Employment Law)

There are many famous places in Geneva that visitors should not miss during their stay. The main attraction is of course the “Jet d’eau”, Geneva’s most prominent landmark. This tremendous fountain is in Lake Geneva in the city’s downtown area. Go under the fountain and try to keep your clothes dry. Walking around Geneva, you can also visit the “Flower clock” located over the Pont du Mont Blanc bridge in the English Garden. Continue your walk to the “Cathédrale Saint Pierre” and climb to the top of the tower. This famous cathedral is best known for its historic significance as the church where John Calvin gave his inspiring sermons during the mid-16th century. End your visit of the Geneva historical center by eating a sweet treat. I would recommend going to the most popular and typical chocolate factory and ask for a “chocolate bin”. If you still have time and enjoy walking, head to the United Nations district by walking along the Geneva lake, and “climb” up the road close to the botanical garden (which you can also visit) to take a picture of all the famous flags at the United Nations HQ.

Aurélie Gudet (Manager, Immigration)

I would recommend a walk in the Vineyards in the Lavaux region – the view is absolutely incredible. Some would even say it’s the most beautiful view in the world. You can start your walk from Cully or Lutry and head all the way up to Chexbres via the “Chemin des Vignes”. Once you arrive in Chexbres, you can take a break and enjoy some good food and a glass of wine from the region at one of the restaurants in the area.

Elsa Gardel (Senior Manager, Tax)