Switzerland and Contractors?

[jenksy]

Hi - Im new to this site but hopefully you can help. We are a small Uk based recruitment company that has just established a Swiss presence - Historically we have always been focussed on perm recruitment; recently a number of clients have asked us to find them contractors in Switzerland - Can anyone give advice on any legal requirements or issues specifically related to Switzerland (for example are there any specific rules governing Umbrella companies etc.) Your help will be very much appreciated

[NotAllThere]

How much appreciated?

It costs 20'000CHF to set up a GmbH. 100'000 to set up an AG. Selbständig is possible only when you can demonstrate you have three different clients. So most contractors I encounter work on the payroll of their agency, or through a payroll company of their choice. A supplier of contract staff must have an employment license, which includes insurance to the tune of CHF50'000 which gets paid out if/when the agency fails.

And everything in Switzerland varies from canton to canton.

[BlasterBates]

You need to work with a management co, a real one I mean Swiss based, not UK based with some dodgy tax avoidance, and put them on the payroll. They pay tax on all their earnings, National Insurance, and PAYE. They will be your employees, and you have to provide the necessary insurance.

[BoredBloke]

anhd it's effin sh_it!

[jenksy]

Many thanks for your response
Are there any management companies that you could recommend that are based in Switzerland.
Ideally we need someone that could run the payroll and have the insurance in place (of course for a fee)

[TykeMerc]

anhd it's effin sh_it!

I'm beginning to suspect that you're not that fond of Switzerland since you took that contract Tony.... I might have the wrong end of the stick of course so feel free to correct me.

[JustMe]

Taxes in Switzerland

Tax is very low, depending on the canton where you live.
Calculation you can find following the link . http://www.comparis.ch/steuern/steue...vergleich.aspx

Renting something is very expensive, also depending on the Canton.
Low tax rate often means high renting rates.

[BoredBloke]

I'm beginning to suspect that you're not that fond of Switzerland since you took that contract Tony.... I might have the wrong end of the stick of course so feel free to correct me.

Whatever gave you that idea.

Tax is very low, depending on the canton where you live.
Calculation you can find following the link . http://www.comparis.ch/steuern/steue...vergleich.aspx

Renting something is very expensive, also depending on the Canton.
Low tax rate often means high renting rates.

Tax may be low but everything else is sky high (in Geneva). It is impossible to rent anything on a short term basis. What you will end up with is something that has not changed (Other than got older and worn out) since 1972 and you'll pay at least 3 times what you would consider to be a normal rent. With beer at 9.50 chf (£10 = 16.8 chf) it's not like you can soften the blow by having a few jars. Hotels are extortionate and piss poor. What I'd give for a travellodge at travellodge prices.

My rate out here is about £400 a day. After tax that drops to about 275 a day giving 1375 a week after tax. But I have to be here 6 nights a week as there are no Monday morning flights. This week I'm staying in a dump which costs 80chf a night or about £50, making £300 a week. Budget on say 150 on flights - yes you can get them cheaper but sometimes you can't - mine on 24th is comming in at 250 and say 100 for food etc and you are left with living away from home, eating tulip food and staying in all manner of fleapits for the princely sum of about £800 a week. Hardly seems worth it but there is bugger all available where I live.

I wouldn't come out here now for less than 800 chf per day - scrub that I just wouldn't come out here!

[darmstadt]

Slightly different for me as I'm German resident and get taxed differently when working in Suisse but still wouldn't go there for at least a minimum of 1000chf per day (which was I got offered for a 4 year contract last year at an international organisation.)

[Turion]

For contractors thinking of going to Switzerland, my advice is only go if you get the best rate you ever think you can get and then some. Example, If you can get 300pd in UK you need 500pd in Swiss to cover your extra costs in hotels and weekly flights back. The tax is not so low, as you have to pay the management co fees, PAYE, social and health insurance so for a single guy you won't get over 65% retention.

If you can get the client to book and pay for your flights/hotel directly it makes a big difference as that then does not come out of your taxed income. - and you get a decent hotel