Working in Switzerland attracts. Average salaries there are almost 5 times higher than in Slovakia. However, the labour market there is also specific because the Alpine country is not a member of the EU. Therefore, if you plan to second employees or work there as a freelancer, make sure you consult the experts first.
First of all, bear in mind that you can work in Switzerland for a maximum of 90 calendar days per year without needing a work permit and residence permit. In addition, do not forget about a number of other rules and important obligations in order to avoid problems.
Obligation to register
In principle, you must register the seconded employees with the State Secretariat for Migration at least eight days before the work begins. The same applies in case that you plan to deploy self-employed persons who also have the obligation to register.
At the beginning, you also need to correctly determine the Swiss collective agreement that will apply to your employees according to the type of work. The minimum wage and allowances to which employees are entitled for the type of work in question under Swiss law must also be correctly determined. In this process, it is worth approaching experts who are intimately familiar with the pitfalls of local employment law. Moreover, in some cantons, a security deposit is also required.
Failure to comply with these rules does not pay off. The Swiss authorities are uncompromising in protecting their labour market. Fines can reach up to CHF 30,000 (€31,750) in some cases, and there is also the risk of a complete ban on the provision of services.
Important documents
Swiss officials are “masters” of on-the-spot inspections. Both seconded employees and self-employed workers must therefore carry several documents – e.g. A1 form, registration certificate, identity card and, in the case of a self-employed worker, a copy of the contract with the client. For example, as a sole trader, if you do not submit the required documents, you could be fined up to CHF 5,000 (€5,300) and banned from further work.
Careful about VAT
Complying with Swiss rules is difficult, but you will avoid heavy fines and bans. Switzerland also has a different VAT registration requirement. If your worldwide turnover exceeds CHF 100,000 (€105,830), you must register for VAT and file the relevant tax reports. However, this requires the representation of a local tax office, which we are happy to arrange for you through our Swiss partners.
At ProfiDeCon, we are experts in doing business not only in Switzerland, but also in Germany, Austria and other countries. We have been helping Slovak companies and entrepreneurs for 10 years.