Contract in Switzerland

**JustMe** · 28 August 2009, 09:47

Working in Switzerland

Yes , your agent is right. Switzerland is not part of EC.
As a foreigner you will be employed by the swiss-agency or management company (based in Switzerland ). You will be taxed at source. So you will receive a nett-income.
It depends on the canton you live how much tax you have to pay.

greetings from Bern

**BlasterBates** · 28 August 2009, 09:51

You can't run it through your Ltd. You'll be employed, and as such that employment income won't be taxed again in the UK, as long as you submit the approriate paper work and make it clear what sort of income it is to HMRC on your annual tax return. They may try and tax anyway, which would be wrong, if they do then get an accountant to clarify for you.

**Lumiere** · 28 August 2009, 09:53

If your Ltd company was exporting Yorkshire Pies, surely you could sell them to Germany/Poland as well as to Switzerland/Russia/Japan ? The only concern would be VAT.

Why is that different with IT (assuming you work there for less than 6 months in a year) ?

**NotAllThere** · 28 August 2009, 10:02

Originally posted by Lumiere View Post

Why is that different with IT (assuming you work there for less than 6 months in a year) ?

Because you are present in the country, working in the country.

To work in CH, the worker must have a work permit. Your employer must have a Swiss presence. So you CAN work through your own company - but you will have to set up a Swiss subsidiary. That'll cost in the region of 25'000CHF. 5'000 for legal fees, 20'000 for the "seed" money for the company. Possibly also you'll have to get an employment license, as you'll be operating as a body shop.

Make sure that your payroll company allows you to claim various expenses. The rules here are far more relaxed than in the UK.

Greetings from Basel.

**BlasterBates** · 28 August 2009, 10:09

It can theoretically be done but it is too complicated and no agency is going to bother, notwithstanding that a contractor that is illegally in Switzerland gets the supplier and maybe the client in trouble as well. It is unlikely as the client usually demands Swiss based staff with work permits as a prerequisite. The fact is that just as in the UK the Swiss have a similar concept to disguised employees, and this is the reason why it isn't practical.

**smalldog** · 28 August 2009, 10:12

Originally posted by sparrowdclxvi View Post

Hi all

This is my first post here, so hi.

I've been contracting here in the UK for 7 years now, but have now been offered a role in Switzerland.

I've been told I can't work through my UK registered Ltd company and have to go through (the agent recommended) management company. The reason being some (vague) tax implications.

Just really looking for some guidance here as I'd much rather do it via my own company.

Any advice gratefully received.

Thanks

Alex

that'll be nestle then!

**Lumiere** · 28 August 2009, 10:18

Originally posted by NotAllThere View Post

Because you are present in the country, working in the country.

Thanks, I see ..

Approximately, following the employment route, how much will you get net from a E500 pd contact ?

**cojak** · 28 August 2009, 10:30

Originally posted by smalldog View Post

that'll be nestle then!

Not nestlecerily... (see wot I done there?). There are big Financial and Tobacco companies out there too..

There's to Switzerland more than chocolate.

Someone called me yesterday for a ServiceCenter contract this week, I'm in contract so couldn't do it.

(Also not sure I'd take it this time unless I could persuade Mr C to come with me...)

**BlasterBates** · 28 August 2009, 10:31

Originally posted by Lumiere View Post

Thanks, I see ..

Approximately, following the employment route, how much will you get net from a E500 pd contact ?

between 65- 70% depends on the canton. Like absolutely everywhere in Europe. I've noticed this is the answer I would give for all the places I've worked in.

Actually some of that will be put into a private, but strictly state controlled pension fund.

Contract in Switzerland