Uk contractor based in Switzerland

[Adam1975]

Hi all,

I'm new to contracting and am about to take my first role. Its a rolling 6 month contract working full time in Switzerland however I will be paid in the UK in GBP.
I obviously intend to set up my own Ltd co but I am not sure on the implications for paying any tax in Switzerland. I own a residential and rental property in the UK also.

Does anyone have any similar experience and can offer any advice here?

Adam

[stek]

Hi all,

I'm new to contracting and am about to take my first role. Its a rolling 6 month contract working full time in Switzerland however I will be paid in the UK in GBP.
I obviously intend to set up my own Ltd co but I am not sure on the implications for paying any tax in Switzerland. I own a residential and rental property in the UK also.

Does anyone have any similar experience and can offer any advice here?

Adam

You will pay tax in both countries and most likely go via local payroll in CH

[NotAllThere]

You can't work in Switzerland and be paid in GBP in the UK. You must have a work permit (a formality for EU citizens), and be paid in Switzerland and have Swiss taxes deducted. If you remain resident in the UK for tax purposes (which can be quite complicated), any tax paid in Switzerland will be deducted from your UK tax bill. Or vice versa, but that's unlikely.

You also cannot work through your UK ltd company in Switzerland.

[BlasterBates]

You can't work in Switzerland and be paid in GBP in the UK. You must have a work permit (a formality for EU citizens), and be paid in Switzerland and have Swiss taxes deducted. If you remain resident in the UK for tax purposes (which can be quite complicated), any tax paid in Switzerland will be deducted from your UK tax bill. Or vice versa, but that's unlikely.

You also cannot work through your UK ltd company in Switzerland.

Actually you can, provided your client is a UK company. This is the exception that applies in most countries that if the Swiss client engages a UK company then subcontractors to that company may continue to pay UK tax and work without a work permit provided that they do not satisfy residency requirements.

This is the rule that allows a construction or Engineering company to come and install stuff. So when companies like Balfour Beatty are building a power station somewhere they can just simply send over their workers.

I had a colleague who worked for several months like that at a Swiss bank, they engaged him through the UK bank and sent him over. After a few months he switched to perm and was taxed in Switzerland.

However if you are to do that you should stay in a hotel and also get some advice to ensure what you are doing is legal, sometimes companies do overdo this, there was an example for Logica in Germany where they all got busted .

[NotAllThere]

Actually you can, provided your client is a UK company. This is the exception that applies in most countries that if the Swiss client engages a UK company then subcontractors to that company may continue to pay UK tax and work without a work permit provided that they do not satisfy residency requirements.

Yes, I'd forgotten about that. But a full-time rolling 6 month contract does not qualify:

https://www.sem.admin.ch/sem/en/home...verfahren.html

For services to be rendered beyond this 90-day threshold, a work permit is required. There is no legal entitlement to this permit, however.

[BlasterBates]

Yes, I'd forgotten about that. But a full-time rolling 6 month contract does not qualify:

https://www.sem.admin.ch/sem/en/home...verfahren.html

Good find, ah so only 90 days. In most countries it is generally 6 months.