Posting Employees to Switzerland

If your foreign company has secured a contract in Switzerland, you may need to post employees to the country to carry out the work.

If your company’s worldwide annual turnover exceeds CHF 100,000, your business generally becomes liable for Swiss VAT on services performed in Switzerland.

What Should You Consider to Ensure Compliance and Avoid Significant Financial Penalties?

You are required to appoint a Swiss tax advisor or fiduciary as your local tax representative. Your local representative will manage your tax obligations and coordinate the following tasks:

• Register your company for Swiss VAT.
• Arrange the legally required financial guarantees:
  • For VAT: a minimum guarantee of CHF 3,000 (this requirement was abolished in 2025).
  • For your industry: depending on the applicable collective employment agreement (CBA), an additional security deposit may be required. The amount depends on the size of your project and generally starts at CHF 5,000. Not all industries are subject to this requirement.
    
    -> Please note: Applications for the reimbursement of these security deposits must be submitted in writing to the competent authorities. Reimbursement can be requested once the project has been completed and up to six months after its completion.

• Maintain accounting records for all business activities carried out in Switzerland.
• Prepare and submit Swiss VAT returns on time.
• Ensure that all VAT due is paid to the Swiss tax authorities.
• Retain all accounting records for the statutory retention period of ten years.

When posting employees to Switzerland, the following requirements must be observed:

• Important: Ensure that all required security deposits have been paid before sending employees to Switzerland (see above).
• The right to post employees to Switzerland is generally limited to a maximum of 90 working days per calendar year. This limit applies to your company as a whole, not to each individual employee. The number of employees working simultaneously does not affect the total annual allowance.
• Please note: If employees are posted on different dates, each working day is deducted cumulatively from your company’s annual 90-day allowance.
• Both the company and every posted employee must be registered with the competent Swiss authorities before each assignment. This notification requirement is intended to protect the Swiss labor market from wage dumping. During registration, you must confirm compliance with Swiss minimum wage regulations and employment conditions.
• The registration must be submitted no later than eight calendar days before the planned start of work in Switzerland.
• A posting agreement must be concluded for each posted employee in the official language of the canton where the work will be performed. The agreement must specify the applicable Swiss salary as well as reimbursement for accommodation, meals, and transportation. It must also comply with Swiss employment regulations regarding minimum wages, working and rest periods, minimum vacation entitlements, and occupational health and safety requirements.
• Night work and Sunday work require a separate permit from the competent cantonal authorities.

Cantonal labor inspectors regularly monitor compliance with these regulations. The Swiss Posted Workers Act, which entered into force on January 1, 2004, ensures that foreign employees working temporarily in Switzerland receive employment conditions equivalent to those of Swiss employees. This primarily concerns salary levels, as Swiss wages are among the highest in Europe. Employers should therefore ensure that posted employees receive compensation that complies with Swiss wage requirements.

Failure to comply with Swiss posting regulations may result in substantial fines amounting to tens of thousands of Swiss francs. In addition, your company may be placed on a public blacklist, preventing it from carrying out business activities in Switzerland for a specified period of up to five years—or, in serious cases, permanently.
This blacklist (the SECO RESA List) is publicly accessible and may also have a negative impact on your company’s reputation.