Global Mobility Switzerland-Germany

The legal basis for cross-border work between Germany and Switzerland is the Agreement on the Free Movement of Persons (AFMP), concluded between Switzerland and the European Union. Under the AFMP, German nationals have the right to work in Switzerland — but this right is conditional rather than automatic, and the specific requirements vary depending on the nature and duration of the deployment.

For short-term deployments of up to 90 days within a 12-month period, no work permit is required, but the deployment must be registered with the relevant cantonal migration authority before work begins. For longer deployments, a residence and work permit is required. The type of permit depends on the duration and terms of the engagement:

• Permit L — for assignments of less than one year
• Permit G — for cross-border commuters resident in Germany who work regularly in Switzerland
• Permit B — for longer-term stays of 90 days or more, typically associated with relocation to Switzerland. It applies to employed persons and, under certain conditions, to those not in employment.

Permit applications are handled through the cantonal migration authority and the relevant municipality. Processing times for longer-term permits typically run one to two months, so authorization must be sought well in advance of the intended start date.

Secondment is the most common Global Mobility scenario in the Germany–Switzerland context: a German company temporarily deploys an employee to a Swiss branch, subsidiary, or client site while the underlying employment relationship with the German employer remains in place. For a detailed overview of how German employment law governs this arrangement from the German side, see our page on posting employees abroad.

Before a German employee begins work in Switzerland, the deployment must, in most cases, be notified to the relevant cantonal migration authority. This posting notification (Entsendemeldung) is a separate obligation from the work permit and residence permit requirements described below, and applies regardless of whether the employee requires formal authorization.

The notification must be submitted before work begins. As a general rule, the cantonal authority must be notified at least eight days in advance, though the precise deadline depends on the circumstances of the deployment.

Certain activities are exempt from the notification obligation. These include attending events, conferences, or trade fairs as a visitor; traveling to Switzerland solely to negotiate or sign a contract; and attending a business meeting. Depending on the sector, deployments of eight days or fewer within a calendar year may also be exempt. Where an exemption applies, no notification is required — but the distinction between an exempt activity and a notifiable deployment is not always straightforward, and should be assessed before the employee travels.

Where the notification obligation applies and is not met, the employer may face a warning or an administrative fine. As with work authorization more broadly, the notification should be treated as a first step, not an afterthought.

A seconded employee generally remains covered by the German social security system for the duration of the secondment, provided the deployment is temporary — typically up to 24 months. This continued coverage is documented by the A1 Certificate, issued by the employee’s German health insurance fund. The Swiss authorities recognize the A1 Certificate and waive the obligation to pay Swiss social insurance contributions accordingly.

The A1 Certificate must be applied for and presented to the Swiss employer, and, where requested, to the cantonal migration authority, before work begins in Switzerland. Without it, the employee is treated as subject to Swiss social insurance obligations from day one, which can result in double contributions and significant repayment demands. Obtaining the certificate in advance is not a formality — it is a legal requirement with direct financial consequences if overlooked.

A seconded employee is subject to a hybrid legal regime. The German employment contract remains in force, but Swiss minimum employment standards apply for the duration of the deployment. Under Swiss law and the applicable collective labor agreements (Gesamtarbeitsverträge / GAV), this covers minimum salary levels, leave entitlements, rest periods, and maximum working hours — standards that are in several respects more protective than their German equivalents. Overtime in particular cannot be covered by blanket contractual clauses; it must be compensated separately, either through additional pay or time off in lieu. The employment contract should be reviewed and, where necessary, supplemented to ensure compliance with Swiss requirements.

The secondment must also be genuinely time-limited. An open-ended or repeatedly extended arrangement risks being reclassified as local employment, with significantly different legal consequences.

Provided the secondment lasts for less than two years, the employee generally remains liable for income tax in Germany. The Germany–Switzerland Double Taxation Agreement (DTA) governs the allocation of taxation rights between the two jurisdictions.

For working days spent in Switzerland, the DTA determines whether Swiss income tax liability arises. Where the employee spends fewer than 183 days working in Switzerland within a calendar year, the salary paid by the German employer is generally not subject to Swiss income tax — provided that the salary is not borne by the employer’s Swiss permanent establishment. Where the 183-day threshold is exceeded, Swiss income tax applies to the income attributable to the Swiss activity, and the corresponding income is exempted from German tax under the DTA to avoid double taxation. Swiss withholding tax (Quellensteuer) may be deducted at source on working days spent in Switzerland, with the DTA determining how this is reconciled against the overall tax position.

Note that the 183-day threshold for tax purposes is separate from the 24-month threshold that governs social security coverage. An employee can remain covered by the German social security system for up to 24 months while becoming partially liable for Swiss income tax within that period, depending on the number of working days spent in Switzerland. For secondments of any significant duration, the tax position should be reviewed proactively.

Local employment in Switzerland differs fundamentally from secondment. Where a Swiss company — whether an AG or GmbH — directly employs a German national, there is no underlying German employment relationship to fall back on. Swiss law governs the arrangement in full, and both the employer and the employee take on obligations that are materially different from those that apply in Germany.

The employment contract must be in writing and must reflect Swiss employment law requirements. Several aspects of the Swiss framework differ from the German equivalent and require explicit attention in the contract:

• Notice periods in Switzerland are typically one to three months, calculated to the end of a calendar month, and must be set out contractually
• The statutory minimum leave entitlement is 20 days per year
• Salary levels and any applicable supplements must meet Swiss statutory and, where applicable, collective agreement standards,
• Switzerland establishes mandatory minimum standards in areas such as health insurance, accident insurance, and occupational pensions, but additional benefits beyond those minimums are not comprehensively prescribed by statute and should be agreed contractually

Swiss collective labor agreements (GAV) may also apply depending on the sector, and their requirements take precedence over less favorable contractual terms.

An employee directly employed in Switzerland is subject to Swiss social insurance in full. The principal contributions are as follows:

• AHV/IV/EO (old-age, disability, and loss of earnings compensation): a combined employer and employee contribution of approximately 10.6%
• Accident insurance: paid by the employer, at approximately 1–3% depending on the sector
• Non-occupational accident insurance (Nichtberufsunfallversicherung): paid by the employee
• Unemployment insurance: approximately 1.1%, shared between employer and employee
• Health insurance: mandatory under Swiss law

For third-country nationals, the employer is responsible for applying for the residence and work permit before work begins. EU citizens, including German nationals, apply for their own permit. Applications are submitted to the relevant municipality and cantonal authority, with a typical processing time of four to eight weeks. For assignments of less than one year, a Permit L is the standard route; longer-term local employment requires a Permit B.

A locally employed German national becomes liable for Swiss income tax — assessed at the cantonal, municipal, and federal levels — from the outset of employment. Where a Permit B is held, withholding tax is deducted at source by the employer. A German national without a Permit B, as an EU citizen, generally arranges withholding directly through the cantonal migration authority. The Germany–Switzerland DTA governs the allocation of taxation rights and will determine whether any residual German tax liability arises, particularly in the early period of relocation.

Senior employees who maintain a regular presence in both Germany and Switzerland face distinct legal challenges. Unlike standard secondment or local employment arrangements, the cross-border nature of their role means that questions of tax liability, social security obligations, and corporate exposure do not neatly resolve in one jurisdiction.

Where a German managing director or senior executive is primarily active in Switzerland — conducting negotiations, entering into contracts, or managing operations from Swiss soil — this may give rise to a permanent establishment (Betriebsstätte) under German and Swiss tax law. A permanent establishment has significant corporate consequences: the German company may become liable for Swiss corporate tax on the profits attributable to the Swiss activity, potentially creating an unexpected and substantial tax exposure.

This risk is frequently underestimated. The threshold for establishing a permanent establishment is lower than many companies assume, and regular cross-border activity by a senior employee with authority to act on behalf of the company can be sufficient to trigger it. For any arrangement involving sustained executive presence in Switzerland, a tax opinion should be obtained before the deployment begins.

An executive who spends a significant proportion of their working time in Switzerland will generally be taxable in Switzerland on the income attributable to that activity, regardless of where the company’s registered office is located. This liability arises once working days in Switzerland exceed 183 within a calendar year; below this threshold, the DTA generally preserves German tax liability on the relevant income. Note that certain executive positions are subject to different treatment under the DTA, and the applicable rules should be verified for each arrangement.

The DTA allocates taxation rights based on where work is actually performed, not on the employer’s place of business. Executives operating across borders must therefore actively establish and document their tax position — including maintaining clear records of the working days spent in each country.

Where an executive’s center of activity and residence both shift progressively towards Switzerland, full Swiss income tax liability can arise. This should be identified and planned for in advance rather than addressed retrospectively.

The social security treatment of a cross-border executive depends on where the substantial part of their activity is performed. Where a significant proportion of work is carried out in the executive’s country of residence, the social security rules of that country apply. Where the executive works primarily in a country other than their country of residence, the rules of the country in which the employer is based apply instead. As with the permanent establishment question, clarity on where the executive’s activity is principally located is essential — and should be established through proper documentation rather than left to subsequent determination by the authorities.

The most straightforward solution for companies that require executive presence in both countries is a clear, documented division of responsibilities: German-based managing directors lead and make decisions from Germany; locally based executives manage Swiss operations on the ground. Where genuine dual presence is operationally necessary, the arrangement should be underpinned by a tax opinion that establishes the economic substance of the role, and the employment and corporate documents should reflect that conclusion.

The legal complexity of cross-border deployments between Germany and Switzerland means that errors are common — and the consequences can be significant. The following are the most common risks in practice.

The A1 Certificate is one of the most important documents in any Germany–Switzerland secondment arrangement, and one of the most frequently overlooked. Where an employee begins work in Switzerland without a valid A1 Certificate in place, the Swiss authorities may assert a social insurance contribution obligation from the first day of work. This results in double contributions — the employee continues paying into the German system while Swiss contributions also become due — and can lead to substantial repayment demands and penalties.

The certificate must be obtained from the German health insurance fund and presented to the Swiss employer before work begins. It cannot be obtained retrospectively with the same effect. Treating the A1 Certificate as an afterthought is one of the most avoidable and most costly mistakes in this area.

German employers seconding employees to Switzerland frequently assume that the German employment contract is sufficient as it stands. It is not. Swiss minimum employment standards — covering salary levels, leave entitlements, rest periods, maximum working hours, and overtime — apply for the duration of the deployment and in several respects set a higher floor than German law. Overtime in particular cannot be covered by blanket contractual clauses; it must be compensated separately, either through additional pay or time off in lieu.

Employment contracts should be reviewed against Swiss requirements — and, where the employee is being hired locally, drafted under Swiss law from the outset.

Where a German company maintains a sustained employee presence in Switzerland — whether through a long-term secondment, a locally active executive, or a project team working on Swiss soil — there is a risk that a permanent establishment will be deemed to exist. The consequences are corporate rather than individual: the German company may become subject to Swiss corporate tax on profits attributed to the Swiss activity.

This risk is not always apparent from the role description on paper. It depends on what the employee actually does in Switzerland — in particular, whether they have the authority to conclude contracts or take decisions on behalf of the company. For longer-term or senior deployments, the permanent establishment question should be assessed by a tax advisor before the arrangement begins.

Cross-border deployments to Switzerland give rise to a range of distinct legal obligations depending on the nature of the arrangement and the employee’s circumstances. These include residence and work permit requirements, the posting notification obligation (Entsendemeldung), and compliance with applicable Swiss employment conditions. The consequences of non-compliance vary by obligation and can range from a formal warning or administrative fine to criminal liability where the violation is deliberate. Both employers and employees are advised to establish which obligations apply, and the associated deadlines, well before any deployment begins.

A secondment to Switzerland that is extended repeatedly or structured without a clear end date can be reclassified by the Swiss authorities as local employment. The consequences are significant: full Swiss social insurance obligations, local employment law protections, and potentially a different tax position all apply. Secondment arrangements should have a defined term from the outset, and any extension should be assessed for its legal implications before it is agreed.

The scenarios discussed so far have focused on German employees deployed to Switzerland. The inverse arrangement — a German company seeking to hire Swiss nationals — is frequently misunderstood, often because Swiss nationals occupy a distinct legal position in Germany that differs from both EU citizens and standard third-country nationals.

Swiss nationals are not EU or EEA citizens. However, under the Agreement on the Free Movement of Persons (AFMP), they hold the right to work and take up residence in Germany. A residence permit (Aufenthaltserlaubnis) can be issued on this basis under Section 28 of the Residence Ordinance (Aufenthaltsverordnung – AufenthV).

A Swiss national taking up employment in Germany registers their residence with the local registration authority (Einwohnermeldeamt) and the residence permit is issued accordingly. The standard German immigration framework – including the EU Blue Card and the skilled worker routes under the Skilled Immigration Act (Fachkräfteeinwanderungsgesetz) – does not apply, since the AFMP provides the applicable legal basis instead.

Once in employment in Germany, a Swiss national employed by a German company is subject to German employment law in full. There is no hybrid regime of the kind that applies to seconded employees. The employment contract should be drafted under German law and must comply with all applicable German statutory requirements, including minimum wage obligations, statutory notice periods, and leave entitlements.

A Swiss national employed in Germany is subject to the German social insurance system from the first day of employment. German contribution rates apply across all branches of social insurance — pension, health, long-term care, unemployment, and accident insurance. The Germany–Switzerland social security agreement may be relevant to the employee’s position regarding future entitlements in both countries, including the aggregation of insurance periods for benefit qualification purposes, depending on the individual’s circumstances.

A Swiss national who relocates to Germany becomes liable for German income tax on their worldwide income as a German tax resident. They must register with the German tax authority and file German tax returns in the usual way. Special cross-border commuter rules under the Germany–Switzerland DTA do not apply where the individual has relocated to Germany — they are relevant only where the employee remains resident in Switzerland and commutes to work in Germany.

Global Mobility between Germany and Switzerland involves a combination of employment law, immigration law, social security, and tax — across two legal systems that differ in significant respects. Our Swiss Desk, led by Dania Höltershinken, addresses the full picture within a single working relationship, coordinating with our established network of Swiss partner law firms where matters require input under Swiss law.

Before any cross-border deployment begins, we establish the right legal structure — whether secondment or local employment — and identify the obligations that apply. We review and adapt employment contracts to comply with the applicable legal requirements, manage A1 Certificate applications, and advise on Swiss social insurance registration as needed.

We handle residence and work permit applications for employees being deployed to Switzerland and for Swiss nationals taking up roles in Germany. This includes cantonal registration for short-term deployments, Permit L and Permit B applications, ICT Card applications for intra-company transfers, and the fast-track procedure for companies recruiting Swiss nationals into Germany.

For deployments with complex tax implications — including executive arrangements and longer-term assignments — we advise on the employee’s tax position under the Germany–Switzerland DTA and assess the permanent establishment risk for the employing company. We also provide ongoing support to ensure permit conditions remain current and that secondment arrangements do not drift into reclassification risk.