European Nationals in Switzerland. Information on the Free Movement of Persons

European Nationals in Switzerland Information on the Free Movement of Persons

Published by: Integration Office DFA/DEA Information Parliament Building East CH-3003 Berne Phone: +41 31 322 22 22, fax: +41 31 312 53 17 e-mail: europa@ib.admin.ch www.europa.admin.ch Federal Office for Migration (FOM) Quellenweg 6 CH-3003 Berne-Wabern www.bfm.admin.ch Directorate of Labour State Secretariat for Economic Affairs (SECO) Effingerstrasse 31 CH-3003 Berne www.seco.admin.ch Concept and texts: Graphic design: Photography: Printing: Distributed by: Zoebeli Communications Ltd., Berne Oliver Slappnig, Herrenschwanden Croci & du Fresne, Berne (cover) Marcus Gyger, Berne (portraits) 6000 copies SFBL, Distribution of Publications, CH-3003 Berne, www.bundespublikationen.admin.ch Available in English, German, French and Italian. Order number: 201.349.e, 201.349.d, 201.349.f, 201.349.i 03.2007 6000 SAP-Nr. 860 169 507 / 1 st edition 03.2002

Contents 3 Foreword... 4 Bilateral Agreement on the Free Movement of Persons: the key points in brief... 5 What s new?... 5 Who is affected by the Agreement?... 5 Transition period... 6 What accompanying measures is Switzerland taking?... 8 What s unchanged?... 8 Questions about residence in Switzerland... 10 Entry... 10 People in employment...10 Employees... 10 Self-employed... 13 Cross-border commuters... 14 Looking for work and job-finding services..... 16 Service providers... 16 Overview of permits... 18 People without gainful employment... 17 Pensioners and students... 17 Tourists and health-resort visitors... 20 Family reunification... 20 Recognition of diplomas... 21 Taxes... 22 Social security... 22 Coordination of the social security systems... 22 Brief review of Swiss insurance schemes... 22 Health insurance... 22 Accident insurance... 24 Old age, survivors and invalidity insurance... 24 Family allowances... 24 Unemployment insurance... 24 Buying property in Switzerland... 24 Useful addresses and websites... 25 Swiss nationals intending to live and work in the EU can order another booklet about the Bilateral Agreement on the Free Movement of Persons (www.bundespublikationen.admin.ch, order number: 201.348.d, 201.348.f, 201.348.i). For simplicity s sake and to make it easier to read, this text in general uses the masculine form but it applies of course equally to women in the various categories it refers to.

4 Foreword Dear Reader, In the summer of 1999, the European Union and Switzerland signed seven bilateral agreements including the Agreement on the Free Movement of Persons, which came into force on 1 June 2002. As a result of EU eastern enlargement on 1 May 2004, the agreement was supplemented by an additional protocol containing provisions for the gradual introduction of the free movement of persons as well in the ten new EU member states. The protocol came into force on 1 April 2006. The Free Movement of Persons Agreement and its additional protocol lift restrictions on EU nationals wishing to live or work in Switzerland. The right of free movement is complemented by the mutual recognition of professional qualifications, by the right to buy property, and by the coordination of social security systems. The Swiss government and parliament have made provision for accompanying measures to protect employees in Switzerland from the abusive undercutting of wage levels. These measures, which have been in place since 1 June 2004, were strengthened at the same time freedom of movement was extended to the new EU member states. This brochure is intended to give you an initial overview of the new legal situation, and allow you perhaps to make plans for travel and residence. Let us wish you now a warm welcome to Switzerland. For the three departments responsible for the free movement of persons: Micheline Calmy-Rey, Federal Councillor Head of the Federal Department of Foreign Affairs Christoph Blocher, Federal Councillor Head of the Federal Department of Justice and Police Doris Leuthard, Federal Councillor Head of the Federal Department of Economic Affairs

Bilateral Agreement on the Free Movement of Persons: the key points in brief 5 What s new? The Agreement means that over a transition period the same living, employment and working conditions will apply to Swiss nationals and nationals of EU member states, both in Switzerland and the EU. The principle of equal treatment means that there will be no discrimination against EU nationals living in Switzerland. In detail, this means that they have the following rights: occupational and geographical mobility (i.e., they will be able to change their job or where they live or work, at any time) equality of working conditions coordinated social security protection equality of social support (concessions on public transport, housing allowances, etc.) equality of tax concessions self-employment mutual recognition of diplomas with a view to access to a regulated job family reunification for members of their family to engage in gainful employment remain in Switzerland after they have ceased to be in gainful employment (the so-called right to remain) buy property, subject to certain conditions People in employment Both employed and self-employed people have the right to enter, reside and obtain a work permit in any state which has signed the Agreement (Switzerland, EU or EFTA member state). Restrictions still apply during the transition period. People without employment People without employment such as pensioners and students also have the right to enter and reside providing they have health insurance and financial means sufficient to ensure that they do not become a burden on the Swiss social security system. Services Service providers have a right to entry and residence for up to 90 working days a year. Restrictions also apply here during the transition period. Who is affected by the Agreement? The Free Movement of Persons Agreement and its supplementary protocol apply to all nationals of EU member states (i.e., anyone holding a passport issued by an EU member state), EFTA states 1 and Switzerland. The extension of the free movement of persons to Bulgaria and Romania will be the subject of future negotiations. The Agreement does not affect nationals of other states, except in the case of family members or workers from other states who are integrated into the labour market of the EU and temporarily provide services in Switzerland on behalf of a business based in the EU (i.e. posted employees). The right to free movement is enjoyed by people in employment, whether employed or self-employed, and people without employment (pensioners, students and others) provided they have health insurance and dispose of financial means sufficient to ensure that they can support themselves without becoming a burden on the social security system (for instance having to draw cantonal supplementary benefits as a pensioner). The agreement between Switzerland and the EU makes provisions for granting long-term work permits running for five years, and short-term permits running for up to a year. The permit will be renewed if the person concerned continues to be in gainful employment. Short-term residents are no longer obliged to leave Switzerland as soon as their contract ends. 1 Members of the European Free Trade Association (EFTA) are Norway, Iceland, Liechtenstein and Switzerland. Free Movement of Persons Agreement between the EU and Switzerland Signature of the Agreement:... 21 June 1999 Swiss referendum (67.2% in favour)...21 May 2000 Entry into force of the Agreement:... 1 June 2002 Signature of the Protocol:... 26 October 2004 Swiss referendum (56% in favour)... 25 September 2005 Entry into force of the Protocol:...1 April 2006

6 Bilateral Agreement on the Free Movement of Persons: the key points in brief Introduction of the Free Movement of Persons: Transition Periods EU-17 and EFTA member states National priority, control of wages and working conditions (until 31 May 2004) Quotas (until 31 May 2007) Special protection clause for Switzerland in case of an excessive increase in immigration (until 31 May 2014) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EU-8 member states National priority, prior control of wages and working conditions, as well as quotas (until 31 May 2011) Special protection clause for Switzerland in case of an excessive increase in immigration (until 31 May 2014) To distinguish between the field of application of the various provisions of the Agreement, the following abbreviations have been used in this brochure: EU-25: 25 EU member states prior to 1 January 2007 6 EU-15: 15 EU member states prior to 1 May 2004 2 EU-10: 10 EU member states that joined on 1 May 2004 5 EU-17: EU-15 together with Malta and Cyprus 3 EU-8: 8 EU member states from Central und Eastern Europe that joined on 1 May 2004 4 Transition Period People in employment The free movement of people in employment (both employed and self-employed) between Switzerland and the 25 EU and EFTA member states will be introduced gradually. The Free Movement of Persons Agreement and its protocol basically make provisions for two transition periods with regard to people in employment: The first transition period (contained in the Agreement) applies to the 15 EU member states prior to 1 May 2004 (EU-15) 2, to citizens of Malta or Cyprus 3, and to citizens of the EFTA member states of Norway and Iceland. The second transition period (contained in the Protocol) applies to citizens of the eight EU member states from Central and Eastern Europe (EU-8) 4 that joined the Union on 1 May 2004. People not in employment There is no transition period for people not in employment, such as pensioners or students, who wish to reside in Switzerland without working. They are permitted to settle in Switzerland, providing they have health insurance and sufficient financial means. Full freedom of movement will apply for a trial period between Switzerland and the EU-15 (together with the EFTA member states and Malta and Cyprus) from 1 June 2007 between Switzerland and the EU-8 from 1 June 2011. In the event of large-scale immigration, Switzerland may fall back on a safeguard clause until 31 May 2014, which allows it to reintroduce quantitative limits (quotas). 2 Belgium, Denmark, Germany, Finland, France, Greece, Great Britain, Italy, Ireland, Luxembourg, Netherlands, Austria, Portugal, Sweden and Spain 3 Cyprus and Malta joined the European Union on 1 May 2004 but, unlike the eight other countries that joined at this time, are subject to the same transitional arrangements as the EU-15/EFTA member states. 4 Estonia, Latvia, Lithuania, Poland, Slovakia, Slovenia, Czech Republic, Hungary 5 Cyprus, Estonia, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Czech Republic, Hungary 6 The free movement of persons does not yet apply to Bulgaria and Romania. Negotiations are conducted on the extention of the free movement of persons to these two new member states (joining on 1 January 2007).

7 Citizens of the EU-15 member states Under the provisions of the Free Movement of Persons Agreement, which has been in force since 1 June 2002, the free movement of persons between Switzerland and the 15 «old» EU member states is to be introduced progressively. The first transition period ended on 31 May 2004. During the first two years, Switzerland granted priority to indigenous workers over workers from the EU-15 member states (national priority principle) and controlled the pay and working conditions of workers from these countries. The transition period for maintaining quotas for workers from the EU-15 member states will end on 31 May 2007. Up to this date, Switzerland maintains an annual quota of 15,000 long-term residence permits (five years) and 115,500 short-term residence permits (364 days maximum). Citizens of the EFTA member states The Agreement of the European Free Trade Association (EFTA Convention) contains provisions on introducing the free movement of persons between Switzerland, Norway and Iceland. The mutual and progressive liberalisation of labour markets will take place at the same time as liberalisation with the EU-15 member states. Quantitative limits (300 long-term permits and 700 short-term permits annually) will be abolished on 31 May 2007. Citizens of Liechtenstein have already enjoyed full freedom of movement to Switzerland since 1 January 2005. Citizens of the EU-8 member states Freedom of movement between Switzerland and the eight new EU members from Central and Eastern Europe is regulated in the Supplementary Protocol, which has been in force since 1 April 2006. The Protocol provides for a separate transition period until 30 April 2011 for workers from the EU-8 member states. Up to this date, Switzerland can impose the following restrictions on workers from these states: Quotas The number of long-term permits (5 years) and short-term permits (maximum 364 days) is limited. The quota for long-term permits will be gradually raised from 1,700 in 2006/2007 to 3,000 in 2010/2011. The quota for short-term permits will be raised in the same period from 15,800 to 29,000. All quotas will be abolished on 30 April 2011. In the event of excessive immigration, however, Switzerland can reintroduce quotas. This safeguard clause remains valid until 31 May 2014. Principle of national priority Foreign workers may only be employed if the employer cannot recruit indigenous workers with suitable qualifications. If an employer wishes to recruit a worker from abroad, he must inform the appropriate authorities of the reasons why the vacancy can not be filled by an indigenous worker. Control of wage and working conditions Before the authorities issue a permit, the cantons must control the wage and working conditions. Wage controls and the application of the principle of national priority remain the responsibility of the competent cantonal authority. EU-8 nationals, who were already integrated into the Swiss labour market when the Protocol came into force on 1 April 2006, are given priority treatment. Their permit will be extended if they have an employment contract, and they are not subject to the national priority principle or to quotas if they wish to change their job. Moreover, they are not subject to the prior control of wage and working conditions. Citizens from Malta and Cyprus The transitional arrangements contained in the Free Movement of Persons Agreement with the EU-15 states also apply to workers from Malta and Cyprus. The free movement of persons from these countries will be introduced for a trial period from 1 June 2007. For this reason, the interim provisions of the Protocol on access to the labour market do not apply to nationals of these two states. The Free Movement of Persons Agreement between Switzerland and the EU has been initially concluded for a period of seven years. Switzerland will decide in 2009 whether it wishes to extend the agreement; a decision that could be subject to a referendum. The EU has already stated that it wishes to extend the agreement. If the Agreement is extended, full freedom of movement between Switzerland and the EU will apply as from 1 June 2014.

8 Bilateral Agreement on the Free Movement of Persons: the key points in brief What accompanying measures is Switzerland taking? At the same time as the national priority principle and controls on wage and working conditions were abolished for the EU-15 states (1 June 2004), Switzerland introduced various accompanying measures which are intended to protect workers in Switzerland against wage and social welfare «dumping» during the gradual introduction of free movement. These accompanying measures were strengthened in view of extending freedom of movement to the new EU member states. The key points of the measures are: Employees of EU companies who are posted to Switzerland for the purpose of providing services are subject to the Swiss regulations on minimum working conditions and wages. Employers who do not abide by these conditions are liable to sanctions, ranging from a fine to exclusion from the Swiss market (law on secondment). In the event of abusive and repeated undercutting, collective labour agreements and in particular their contents regarding minimum wages and working hours may be imposed. In branches where no collective labour agreement exists, minimum wages may be fixed in limited, normal employment contracts. Tripartite commissions on the cantonal and federal level (consisting of representatives from employer associations, trade unions and official authorities) monitor the labour market and may apply for sanctions. Professional branches that have a generally binding collective labour agreement are inspected by committees made up of an equal number of representatives from the unions and management. Inspectors check the working conditions in the cantons and report abusive practices. To facilitate the work of the inspectors, employees are informed in writing about various important aspects of the employer-employee relationship such as wages and working hours. Workers claiming self-employed status must present evidence (for example, evidence of accounts or an extract from the commercial register) when beginning work in Switzerland. Temporary workers receive better protection. What s unchanged? Although the Agreement will gradually introduce the free movement of persons, border controls between Switzerland and the EU will remain in place. Despite Switzerland s participation in the Schengen Agreement, there will continue to be border checks on goods and people in cases of suspicion. Value Added Tax will continue to be raised on goods imported from the EU into Switzerland and vice versa. The Euro will not be legal tender in Switzerland. The Agreement on the Free Movement of Persons will have no effect on the tax systems of the individual Swiss cantons. Crossborder commuters will continue to be taxed at source. Every country will retain its own legislation in the field of labour law and social security, but the various social security systems will be better coordinated (see the «Social Security» section on page 22). There will continue to be Swiss embassies and consulates in the various EU member states. Swiss laws on citizenship, inheritance, the family, social security and military service will not be affected by the Agreement on the Free Movement of Persons.

«I can hardly imagine 9 returning to Hungary.» László Bonyai, Hungary Laszlo Bonyai, a 29 year-old trained metal worker, did not need long to make up his mind to move to Switzerland. After working for a few years for a Swiss concrete processing company in Hungary, he fell for the company owner s daughter, and the decision was made! Only Switzerland offered prospects for both of them. So Laszlo packed his bags and started a new life in his wife s country, finding a job in the same industry in Glarus. «We have built up a circle of friends together in Switzerland», says Laszlo. «I can hardly imagine returning to Hungary.» Nevertheless, they have brought something of the Hungarian taste for fun to Zurich. His wife runs with a passion a small shop in the city centre selling Hungarian specialities. They moved to Switzerland: in 2001 Resident permit: Laszlo obtained a resident permit nine months later What he likes: The efficiency of Switzerland and his multicultural circle of friends. What he sometimes misses: The easygoing attitude of the Hungarians and their talent for turning any occasion into a party. He also misses the relaxation that is so readily available with the many thermal pools in Hungary. (2006)

10 Questions about residence in Switzerland Entry I should like to travel to Switzerland. What documents do I need? A valid identity card or valid passport is all that is required for you and members of your family to enter or leave Switzerland (see also the «Family Reunification» section on page 20). You do not need a visa. If any member of your family is neither Swiss nor a national of an EU member state, and nationals of the state to which they belong normally require a visa, an entry visa may be required, and in individual cases where there is good reason for this an extract from the police register. Posted employees who come from states which are not members of the EU may also require a visa. People in employment Employees Do I need a work permit in Switzerland? During the transition period you require a work and residence permit. The transition period for citizens of the old 15 EU member states and Malta and Cyprus (EU-17) is valid until 31 May 2007. For citizens of the EU-8 member states the transition period lasts until 30 April 2011. After expiry of these dates, you will no longer need a work permit. A residence permit, howewer, will still be necessary. The cantonal migration authorities will issue it if you produce an employment contract. Transitional arrangements for workers Workers from the EU-17 member states Workers from the EU-17 member states are subject to quotas until 31 May 2007. You therefore require a work permit before beginning work in Switzerland. You can apply directly to the cantonal migration authorities who will issue a permit if the quota has not yet been reached. To ensure that you obtain a work permit before you enter Switzerland, you may request an assurance from the migration authorities in advance. Workers from the EU-8 member states Workers from the EU-8 member states are subject to quotas, to the principle of national priority and to controls of working and wage conditions until 30 April 2011. Although short-term workers (up to four months) are not subject to quotas, they do require a work and residence permit from their first working day. The Swiss authorities will issue one if an indigenous worker cannot be found, if the wages correspond to the goingrate in the area and in the branch, and if you are well-qualified. If you fulfil all these criteria, you will receive a permit independent of the quota. Short-term residents with lower professional qualifications will only be admitted within the quota arrangement. The Free Movement of Persons Agreement between Switzerland and the EU, and its Protocol, basically define two different transitional arrangements for people in gainful employment: The first arrangement applies to citizens of the EU-15 member states as well as Malta and Cyprus (EU-17). The other arrangement applies to citizens of those countries that joined the EU on 1 May 2004, not including Malta and Cyprus (EU-8). Registration Must I register in Switzerland? You must register with your local authority (commune) within eight days of entering Switzerland. The local authority will generally forward your documentation to the cantonal migration authorities. Residence What determines the length of the residence permit? If your employment is to last less than a year, you will be a shortterm resident. If you have an employment contract which runs for a year or more, or has no fixed term, you will be eligible for a long-term residence permit. Seasonal workers in Switzerland will receive a short-term permit. The seasonal workers statute has been abolished since the coming into force of the Free Movement of Persons Agreement on 1 June 2002.

«I would like 11 to stay in Switzerland for ever.» Settimio Menna, Italy This Italian, now 64, came from Atessa as a 19-year-old to take a seasonal job in Switzerland because the employment situation was better here than in his country of origin. Initially he worked as a tailor for a firm in Berne where he met his future wife. They married and decided to stay in Switzerland. Sixteen years later when they had four children aged from two to ten Settimio Menna set up his own transport business. Since then he has worked as a self-employed truck driver. Elvira Menna is a housewife and helps her husband with the paperwork. Settimio Menna found it fairly easy to set up his business in 1972. He got through the construction industry crisis in the seventies thanks to a lot of hard work, and today he is pleased with his situation: «We would like to stay in Switzerland for ever». Emigrated: 1956 Residence permit: Permit C What he likes about Switzerland: peace and security What he likes less: the colder climate. What he misses in Switzerland: political rights. His recommendation to anyone thinking of immigration: Anyone who is honest and works hard will be successful in the end. What the Agreement on Free Movement would have meant for him when he was younger: If Settimio Menna were to come to Switzerland now as a young man, he would not have to return to his county of origin every winter, and after the five-year period would be able to take advantage of full freedom of movement. (2002)

12 People in employment Short-term residents What rules apply to residence permits for short-term residents? Jobs lasting up to a maximum of three months If you are a citizen of an EU-17 member state and have a job lasting up to a maximum of three months, or 90 working days per year, you no longer require a work or residence permit. However, you must still register with the cantonal employment authorities. See the box on page 10 for citizens of the EU-8 member states. Employment exceeding three months, but less than a year If you have an employment contract which runs for more than three months but less than a year you will receive a work and residence permit for the period your contract runs. Can I have my short-term residence permit extended? You can have your short-term residence permit extended at any time on presentation of a new employment contract. If the contract is to run for less than a year, the permit will be issued for as long as you are to be employed. If the contract is to run for a year or more, you are entitled to a long-term residence permit. In both cases this means that it will no longer be necessary to leave Switzerland between two contracts. Transitional arrangements remain valid until 31 May 2007. Long-term residence permits What rules apply to long-term permit holders? If your contract runs for a year or more you will receive a Swiss residence permit valid for five years. (Transitional arrangements: See page 10) Can I have my long-term residence permit extended? Your long-term residence permit will be extended for a further five years if you produce an employment contract running for a year or more. On the first renewal, the validity of your residence permit may however be limited to one year if you have been involuntarily unemployed for more than twelve consecutive months. Withdrawal of residence permits Can my residence permit be withdrawn if I am out of work against my will, sick or have an accident? No, the right to stay cannot be withdrawn if you are temporarily unable to work because of illness or an accident. This is equally true of involuntary unemployment, but in that case you will need confirmation from the labour office that you are unemployed against your will. Settlement As a national of an EU member state, when can I expect to receive an unrestricted permit to settle in Switzerland? The unrestricted residence permit (C permit), which nationals of the EU-15 member states usually receive after living in Switzerland for five years, is not governed by the Agreement on the Free Movement of Persons or its Protocol. Nationals of the EU-10 member states usually obtain an unrestricted permit to settle after ten years. It will continue to be issued on the basis of agreements on permanent residence concluded with the state of origin, or reciprocity. Right to remain Can I remain in Switzerland if I retire? Yes, if you have worked in Switzerland during the twelve months before reaching retirement age, and have lived here at least three years. In that case you do not have to meet the conditions otherwise applying to pensioners from the EU who wish to move to Switzerland (see the «People without gainful employment» section on page 17). Members of your family will also be granted the right to remain. As a national of an EU member state, can I stay in Switzerland even if I have to give up work because of permanent incapacity? Yes, you may remain if you have lived in Switzerland for two years. The right of return I have worked in Switzerland in the past. May I return to Switzerland? If you held a B permit (or an L permit lasting more than one year) when the Agreement or its Protocol came into force, but left Switzerland after the permit ran out, you may return on easier terms for six years after your departure.

13 Mobility May I change where I live and work in Switzerland? Yes, you will have the right to geographical and occupational mobility whether you have a short-term or long-term permit, i.e., you can change where you work or live in Switzerland at any time. But do not forget to report your departure to the old local authority and to register with the new one. Self-employed Residence and employment I should like to work in Switzerland on a self-employed basis. What conditions apply? Basically, as a national of an EU member state you are entitled to stay in Switzerland and work here on a selfemployed basis. The condition is that you pursue your economic activity at your own costs and at your own risk. value added tax number or social security registration, by showing your accounts, or by setting up a business which is entered in the commercial register. What happens if my business is not successful? If you are unable to support yourself and become dependent on welfare, you will lose your right to stay. But you can of course look for a job, i.e., switch to being an employee. May I change my job in Switzerland? And may I set up on my own account? Yes. Whether you hold a long-term or short-term residence permit, you may at any time change your job, your employer or your profession, or become self-employed. Transitional arrangements regarding mobility During the transition period (until 2007 or 2011), short-term permit holders and self-employed workers are subject to occupational mobility restrictions in the first six months. You can be in gainful employment in Switzerland on a self-employed basis even if you do not have a permanent residence permit (C permit). Your residence permit will be issued for five years, and you will have the right to full geographical and occupational mobility, i.e., you can change your profession, where you live or where you work in Switzerland, or change to being employed, at any time. There will be certain restrictions only during the setting-up period and in respect of professions which are regulated by law. What rights do I have if I am self-employed in Switzerland? During the setting-up period, you will be issued with a temporary residence permit limited to six months. If necessary this may be extended to eight months. After the setting-up period you are entitled to an EU/EFTA residence permit valid for five years if you are able to show that you are working on a self-employed basis. If during the setting-up period you switch to a job in which you are an employee, you will receive a shortterm or long-term residence permit. You are not subject to any quantitative restrictions (quotas). Transitional arrangements for self-employed persons Until 31 May 2007, self-employed persons are subject to a «settingup» period of six months (can be extended to eight months). During this period they have to present evidence of their self-employed status. Self-employed persons from the EU-8 member states will basically be treated the same as nationals from the EU-17 member states, with the exception that they are also subject to the quotas that apply to nationals from the EU-8 member states until 31 May 2007, as provided for by the Agreement s protocol. How can I show that I am pursuing an activity on a self-employed basis? You can provide evidence of your economic activity by quoting your

14 People in employment Cross-border commuters What regulations apply to me as a cross-border commuter from one of the EU-15 or EFTA member states? A previous stay of six months in the frontier region is no longer required. Since 1 June 2002 citizens of all EU-15 and EFTA member states can work in Switzerland as cross-border commuters, no longer only nationals of states bordering on Switzerland. The obligation to return home every day has been replaced by an obligation to return home weekly. If you have an employment contract running for at least one year you will be issued with a cross-border commuter permit valid for five years rather than for one year. You are entitled to an extension for a further five years if you meet the conditions. You can be self-employed. This was not possible for cross-border commuters in the past. You can buy business premises and/ or a second home in Switzerland if this is in connection with your job. You are entitled to occupational and geographical mobility within all the frontier zones bordering on any of the neighbouring states until 31 May 2007; these frontier zones are defined in the cross-border commuter agreement with the neighbouring countries. The frontier zones will be abolished on 1 June 2007 and you will have complete occupational and geographical mobility, i.e., you will be able to freely change your employer, your job, your occupation and where you work. However, you will still need a crossborder commuter permit (Permit G) even after this date. What special regulations apply to me as a cross-border commuter from an EU-8 member state? Citizens from an EU-8 member state who live in a frontier zone and work in Switzerland must apply for a crossborder commuter permit (permit G). However, unlike the citizens of EU- 15 member states, citizens of EU-8 member states will still be subject to restrictions until 31 May 2011 (restrictions such as the national priority principle and controls on wages and working conditions applicable for individual regions and particular branches). A previous stay in the frontier region is no longer required. Cross-border commuters as employees How do I obtain a cross-border commuter permit? Your employer has to apply to the respective cantonal authority, stating the reasons for the application and submitting the necessary documents. For how long is my cross-border commuter permit valid? If your job lasts less than a year, the authorities will issue the cross-border commuter permit for the duration of the job. If the job is to last longer than a year, you will be issued with a crossborder commuter permit valid for at least five years. Can I have my permit extended? The cross-border commuter permit can be extended if you continue to have a job in Switzerland. Must I register in Switzerland? If you live in Switzerland during the week, you must register with the authorities of the municipality in which you live. Do not forget to inform the authorities if you change your job or workplace. I live in Switzerland but work in an EU member state. What does the free movement of persons mean for me? In the EU state where you work you are considered to be a cross-border commuter. In Switzerland you are considered not gainfully employed. This means that you are entitled to have a residence permit if you satisfy the requirements laid down for people without gainful employment (see the «People without gainful employment» section on page 17). Self-employed cross-border commuters I live in the EU and should like to work on a self-employed basis in Switzerland. Can I do that? It is possible for you to work in Switzerland as a cross-border commuter on a self-employed basis. The procedure is similar to that applying to self-employed people living in Switzerland (see the «Self-employed» section on page 13). Transitional arrangements for crossborder commuters Up till 31 May 2007 the cross-border commuter permit for citizens of EU and EFTA member states is only valid in the frontier zones bordering on any of Switzerland s neighbouring states, as provided for in the existing cross-border commuter agreements with the neighbouring countries. A previous stay in the frontier region of the neighbouring state is no longer required. All citizens of the EU and EFTA member states are entitled to be cross-border commuters providing they take up residence in the frontier zone of one of Switzerland s neighbouring states. Up till 31 May 2011 citizens of EU-8 member states working in Switzerland as cross-border commuters will still be subject to the restrictions contained in the Protocol to the Agreement, such as the national priority principle and controls on wages and working conditions.

«Reliability, cleanliness, 15 punctuality and tidiness. These may be clichés, but there is a great deal of truth in them.» David Vryghem, Belgium While studying engineering at Mons this 25-year-old Belgian got to know a young Swiss woman who was there as an exchange student. That was reason enough for David Vryghem to come to the Federal Institute of Technology Lausanne (EPFL) to do his thesis and a year s postgraduate study. After completing his studies he decided to settle in Switzerland. Since September 2000 he has been working for a telecommunications business in Vevey: «I got a Swiss work permit, but only with difficulty. The first decision went against me and my employer had to submit an appeal to the authorities before my permit finally came through. That rather surprised me, as I thought that the telecommunications industry in Switzerland was short of qualified people.» Emigrated: 1999 Residence permit: Permit B What he admires about Switzerland: There is a great deal of truth in the clichés about Switzerland like reliability, cleanliness, punctuality and tidiness. And don t forget the fabulous landscape. What he likes less: the medal has a downside: the Swiss are often reserved and not very sociable. His recommendation to anyone thinking of emigration: People s experience of life in Switzerland is so varied that I don t feel I can give general advice. What the Agreement on Free Movement means for him: David Vryghem enjoys full freedom of movement and is treated on the same basis as Swiss citizens. (2002)

16 People in employment Looking for work and job-finding services Looking for work I would like to find a job in Switzerland. How should I go about it? You do not need a residence permit for the first three months while looking for a job. If your job seeking takes longer, you must apply for a permit to look for a job for a further three months. This permit can be extended for up to a year if you provide evidence that you have been actively looking for a job, and there is reason to think you have a real chance of finding a job. During this period, you are entitled to the same help in finding a job as the labour offices in Switzerland give their own nationals (see the website of the regional employment centres: www.rav.ch). After the end of a job, even if it lasts less than a year, you can remain in Switzerland to look for a new one. You have the right to a residence permit for a further six months, and are entitled while job seeking to the employment centres help with placement. Can I take a job in the public administration in Switzerland? In principle all jobs in Switzerland are open to you, including jobs in the public service. But certain jobs which involve the exercise of public power and the protection of the general interests of the state (e.g., in the diplomatic service or army) are reserved for Swiss nationals as a matter of principle. What about unemployment benefits while I look for a job? For three months unemployment benefits can be sent to Switzerland from the state in which you worked previously. If you have worked in Switzerland and are entitled to unemployment benefits, you have a right to stay for as long as your benefits last. You are not entitled to welfare payments in Switzerland while you are looking for a job. Job-finding services Where can I get information about the situation on the Swiss employment market? Switzerland and the EU have agreed to cooperate in the field of job-finding services. Contacts are set up and job vacancies and applications are matched on the European Employment Services network, EURES (http://europa.eu/ eures/). There are also exchanges of information on the state of the labour market and living and working conditions. Service providers What services have been liberalised under the new Agreement? The Agreement on the Free Movement of Persons provides for limited liberalisation of cross-border personal services. This concerns both the exercise of a self-employed occupation for a limited time without settlement in Switzerland, and cases involving employees of firms based in the EU who are sent to Switzerland to provide a service. The provision of such services is limited in principle to 90 days in any calendar year, unless the service is based on a bilateral agreement between the EU and Switzerland (such as those relating to public procurement, road and rail transport, and air transport). In such cases the permit will be issued for the duration of the service provided, even if this exceeds 90 days. What services have not been liberalised? The activities of employment agencies and agencies hiring out services are not included; nor are financial services, which require authorisation. What is the eight-day rule? Under the Free Movement of Persons Agreement you are allowed to provide a service in Switzerland during a period of maximum 90 days in any calendar year without a permit. Service providers who stay in Switzerland for longer than 8 days in any one calendar year are, however, required to register the service provided. When services are to be provided for more than eight days, a distinction must be drawn between two cases falling under the Agreement: services provided for 90 working days or less services under an agreement on the freedom to provide services (e.g., public procurement, road and rail transport and air transport)

People without gainful employment 17 Services provided for 90 working days or less I provide services in Switzerland on behalf of my EU-based employer for at most 90 days a year. Do I need a residence permit? No. As a service provider from one of the EU-17 member states you have the right to provide your services for 90 days a year without a permit. But you will have to give prior notification to the authorities of your stay and occupation. See the box below for information on service providers from the EU-8 member states. Can I provide services in Switzerland for more than 90 days? Services lasting more than 90 working days that are not regulated by one of the agreements on freedom to provide services, are not regulated by the Agreement on the Free Movement of Persons either. After 90 days the same rules apply to you as apply to those who are not nationals of an EU member state. You can apply for a permit to provide services on that basis. In addition, you can apply for a short-term residence permit if you want to provide services for a period of more than 90 days but less than one year. I am an entrepreneur in the EU and provide services in Switzerland. Can I send people to Switzerland who are not nationals of an EU member state? Yes, you can send third-country nationals to Switzerland if they have long-term authorisation to work in your EU state. However, you are not allowed to hire these employees exclusively for posting to Switzerland. Your employees may need a visa for Switzerland. The nearest Swiss consulate will be able to give you more information. Provision of services in the context of an agreement to provide services (public procurement, road and rail transport, and air transport) I am a national of an EU-15 member state and provide services in Switzerland. What rules must I follow? Switzerland has concluded bilateral agreements in the fields of public procurement, road and rail transport, and air transport. If you provide a service on the basis of one of these agreements you have the right under the Agreement on the Free Movement of Persons to enter and stay in Switzerland for the duration of your work. A permit is only required for Transitional arrangements for service providers from EU-8 member states People providing services in the construction and finishing, industrial cleaning, horticulture and security industries still require a permit until 31 May 2011. They are also subject to labour market restrictions such as the national priority principle, prior wage controls and Swiss qualification requirements. Service providers from other fields (e.g. insurance, accounting, information technology, schools, consultancy and research) are not subject to labour market restrictions but must notify the Swiss authorities from the first day of the service provision. services which last longer than 90 days in any one calendar year. Services provided for less than 90 days in any one calendar year must only be notified in advance to the authorities. I am a national of an EU-8 member state and provide services in Switzerland. What rules must I follow? Services provided for less than 90 days in the context of an agreement to provide services in the fields of public procurement, road and rail transport, and air transport, must be notified to the authorities. Services provided in the construction and finishing, industrial cleaning, horticulture and security industries require a permit from the first day of the service provision (see box «Transitional arrangements for service providers from EU-8 member states»). Also, all services provided for more than 90 days require a permit. People without gainful employment Pensioners and students Do I need a residence permit even if I don t work in Switzerland? No residence permit is required for a stay of less than three months, e.g. as a tourist, if you do not work in Switzerland. But if you plan to stay for more than three months you will require a permit. Cantonal law lays down which authority is responsible. The communal administration of the place where you are going to stay can tell you the exact procedure. The permit is valid for the whole of Switzerland, but you must notify the communal authority of any change in where you live.

18 People without gainful employment What requirements must I satisfy to get a residence permit? A residence permit will be issued if you have enough financial resources 7 for yourself and your family members to ensure that you will not have to claim social assistance in Switzerland; you have health and accident insurance for as long as you are to stay. How long will my residence permit be valid if I have sufficient financial resources and health insurance? The first residence permit issued runs for five years. Exceptionally, in individual cases, the authorities may check already after the first two years to see whether the permit holder still has sufficient financial resources. If, after five years, you continue to satisfy the requirements your permit will be extended automatically for a further five years. My girlfriend is from the EU. Can she live with me in Switzerland without working here? Yes, as long as she meets the requirements for EU nationals without gainful employment (see the beginning of this section). I should like to bring my elderly mother to Switzerland. She is from the EU. Is that possible? Yes, this is possible under the arrangements allowing family reunification (see the section on «Family reunification» on page 20). I would like to take early retirement and stay on in Switzerland. Is that possible? You can apply at any time for a residence permit as a person without gainful employment as long as you satisfy the requirements. 7 Financial resources are considered sufficient if they are more than the welfare benefits laid down in the guidelines of the Swiss Conference for Social Aid (SKOS). In the case of pensions, financial resources available must be greater than the amount which entitles Swiss pensioners to draw supplementary benefit in addition to payments under the old age, survivors and invalidity insurance. Overview of permits Residence permit (B-EG/EFTA) Valid for five years; issued on presentation of an employment contract running a year or more (or without limit); can also be issued instead of a short-term residence permit (L) valid for longer than 12 months. Short-term residence permit (L-EG/EFTA) Issued on presentation of an employment contract running less than a year; the validity of the permit is the same as the length of the contract. The permit can be extended or renewed without the holder having to leave Switzerland. It grants occupational and geographical mobility. Short-term residence permits valid up to four months are not subject to quota. Cross-border commuter permit (G-EG/EFTA) Issued for the length of the employment contract if this runs for less than twelve months. On presentation of an employment contract lasting twelve months or more (or of indefinite duration) the cross-border commuter permit will be valid for five years. The cross-border commuter must return home, but only once a week. Trainee permit (L-EG/EFTA) Short-term permit valid for one year but may exceptionally be extended for a further six months. The permit is issued to applicants aged eighteen to thirty for the purpose of obtaining further training in their profession or in languages. Special rules apply to trainees under individual trainee agreements. Settlement permit (C-EG/EFTA) A settlement permit is usually granted to nationals of the EU-15 and EU-10 member states after a regular and continuous stay in Switzerland of five or ten years respectively. The right to reside in Switzerland is of unlimited duration and is not subject to any restrictions. The Free Movement of Persons Agreement does not contain provisions for the settlement of foreign nationals in Switzerland. Nationals from the EU/EFTA member states are eligible however for a settlement permit under the provisions of the Swiss Foreign Nationals Act and various settlement agreements.

«The Swiss are not as 19 prejudiced against Germans as we had originally supposed.» Nicole und Gabriel Fritz, Germany This young couple from Rhineland-Palatinate lives near Lucerne: «We wanted to get to know a different country and different people, and to get more professional training». Gabriel Fritz is a state-registered nurse and quickly found a job in a hospital through an employment agency. His wife Nicole who studied architectural draughtsmanship wants to study architecture in Switzerland, even though she will have to pay higher fees here. «The training in Switzerland is better and more attractive than in Germany.» The two of them have settled in well and already found friends. «We are very happy here, though we can imagine going back to Germany one day.» Emigrated: Spring 2001 Residence permit: Permit B What they like about Switzerland: the fabulous landscape, the cleanliness, the warmth of the people; that the Swiss are not as prejudiced against Germans as they had originally supposed. What they have a problem with in Switzerland: difficulties with the authorities who are sometimes small minded; that married couples on arrival in Switzerland are treated as singles, and their files given different treatment; the high fees and prices; that you cannot get a Eurocheque card with a B permit, and often draw the short straw when it comes to looking for accommodation; the various Swiss dialects which are often difficult to understand. Their recommendation to anyone thinking of immigration: don t let yourself be scared off by the authorities; and make very careful preparations for living abroad. What the Agreement on Free Movement means for them: Fewer problems with the administration. (2002)

20 Family reunification Students What requirements must I satisfy to get a residence permit in Switzerland as a student? You must show that you have health insurance and sufficient financial resources to maintain yourself. You must also show that the principal reason for your coming to Switzerland is to study at a recognised Swiss educational establishment, and that you are a registered student there. How long is the residence permit valid? The permit will be issued to cover the duration of your course, if this is less than a year. If your course covers several years, the permit will be issued for a year, and extended annually until the end of your course. As an EU student, can I take on part-time paid work in Switzerland? Yes, but you are not allowed to work more than 15 hours a week. If you want to work more than 15 hours, you will be considered to be in employment and will have to have a normal work permit for the duration of the transition period. As a student, can I bring my family with me? Yes, your husband or wife and your dependant children can come to Switzerland with you. Your family is also entitled to work in Switzerland. What about fees and grants at Swiss universities? These matters do not fall under the Agreement on the Free Movement of Persons. It remains open to Swiss schools and universities to ask for higher fees from students from the EU than they do from Swiss students or to grant support assistance only to Swiss students. Will it be easier in future to get an exchange place at a Swiss university? As in the past, it is open to Swiss schools and universities themselves to lay down the basis for accepting students from the EU. Students from the EU may find themselves unable to secure a place at some universities because of a limit on numbers. The EU s education, professional training and youth programmes such as ERAS- MUS and LEONARDO DA VINCI do not fall under the Free Movement of Persons Agreement concluded between Switzerland and the EU. But Switzerland and the EU are shortly to start negotiations on Switzerland s full participation in these programmes. The recognition of degrees and diplomas with a view to admission to further studies (e.g. postgraduate studies) as opposed to the recognition of professional qualifications for gainful employment is not covered by the Free Movement of Persons Agreement. Detailed information should be obtained from the individual schools and universities. Tourists and health resort visitors I am travelling to Switzerland as a tourist. Do I need a residence permit? As a tourist, you do not need a residence permit for stays of less than three months. You have to register and apply for a residence permit only if you stay in Switzerland longer than three months. I shall be staying in Switzerland because I am receiving medical treatment there. Do I need a residence permit? You do not need a residence permit for a stay of less than three months as a patient. You have to register only if you stay more than three months in Switzerland. In that case you will receive a permit for the duration of your treatment. Family reunification Who counts as my family? Your wife or husband and those of your children who are not yet 21, or whom you support. Those whom you support among your parents and the parents of your wife or husband. If you are a student: your wife or husband and your dependant children. On what basis can I be accompanied by my family if I move to Switzerland? However long you are to stay, you are entitled as a matter of principle to family reunification if you have suitable accommodation 8 for your family. If you have no gainful employment you must show that you have sufficient financial resources and health insurance for yourself and for your family. How long can members of my family stay in Switzerland? Residence permits issued to members of your family are valid for the same period as your own permit. 8 Accommodation is considered suitable if it fulfils the local requirements that apply to Swiss nationals.

Recognition of diplomas 21 Can my husband or wife work in Switzerland? Yes, in principle your husband or wife and your children can work in Switzerland whatever their nationality, and whether or not you have gainful employment. The right to family reunion grants privileged admission to the labour market to the spouses and children of citizens of the EU-17 member states. They are not subject to any restrictions (such as the principle of national priority, wage controls or quotas) and therefore already enjoy full freedom of movement. What about schooling, an apprenticeship or professional training for my children if we live in Switzerland? Whether or not you have gainful employment in Switzerland, your children can go to school in Switzerland on the same basis as Swiss children, and take up an apprenticeship or have professional training. You should contact the schools and training establishments in question for more detailed information. Transitional arrangements regarding family reunion and gainful employment Family members of nationals from the EU-8 member states have a right to take up gainful employment if the wages conform to the wages of the region and sector. They still require a work permit until 30 April 2011. What happens if we divorce? Can members of my family stay in Switzerland? In case of divorce, members of your family are not allowed to remain in Switzerland automatically. If the members of your family are nationals of an EU member state they themselves are entitled to stay if they meet the criteria set out in the Agreement. If members of your family are nationals of a state, which is not a member of the EU, the Foreign Nationals Act governs their situation. Recognition of diplomas Will my diplomas, certificates and evidence of professional qualification be recognised in Switzerland? Admission to gainful employment Thanks to the Agreement on the Free Movement of Persons, nationals of EU member states in principle have free access to the Swiss labour market. But to pursue an occupation regulated in Switzerland, you are required to produce evidence of the appropriate professional qualification. Regulated occupations are those that require a diploma, a certificate or proof of ability or competence. Occupations that are not regulated do not require an appropriate certificate; you can pursue such occupations whether or not you have training in that field. Under the Free Movement of Persons Agreement, Switzerland has adopted the system of the mutual recognition of diplomas for regulated occupations. The EU has issued special guidelines for professions such as those of physician, dentist, pharmacist, veterinary surgeon, midwife, nurses, lawyers and architects. These guidelines regulate the fundamental features of the training and requirements for the award of specialist titles, and in general allow automatic recognition of certificates of competence. For all other regulated professions the general guidelines apply, i.e., as a rule it will be necessary to examine whether the qualification is consistent with Swiss requirements. If the diploma or training you have received in an EU member state does not conform to Swiss standards, you may be asked to meet additional requirements (e.g. take an aptitude test, follow a course of instruction or present proof of work experience). Further information on the admission to professions in Switzerland can be obtained from the Federal Office for Professional Education and Technology (OPET): kontaktstelle@bbt.admin.ch A special memorandum can be obtained from the OPET on questions of academic recognition in the fields of health, education and social work. Access to university courses and postgraduate study The Agreement on the Free Movement of Persons does not govern the recognition of diplomas and degrees with a view to an applicant s being accepted on a university course or as a postgraduate student. This area is governed by a series of individual agreements which Switzerland has concluded with its neighbouring countries, and by the Lisbon Convention on the recognition of qualifications concerning higher education, which was ratified by Switzerland in 1998. Driving licences and similar permits Such matters are not covered by the Agreement on the Free Movement of Persons.

22 Taxes/ Social security Taxes Where do I have to pay taxes? If you have your domicile in Switzerland, in principle you will be taxed in Switzerland. Switzerland has concluded a double taxation agreement with each of the EU member states. Taxation for people who are not domiciled in Switzerland is governed by the relevant agreement. Information on the various double taxation agreements can be obtained from the Federal Tax Administration (see the contacts on page 25). Social security Coordination of the social security systems Are the social security systems of the EU and Switzerland now identical? No, the Agreement on the Free Movement of Persons does not standardise the social security systems, but they are better coordinated. Each country retains the structure, nature and extent of its social security benefits. Individual national insurance systems are very differently structured. Coordination removes or mitigates the disadvantages which are a consequence of these differences. This is especially helpful to people who are insured in more than one country, or are not nationals of the country where they are insured. When it comes to compulsory insurance cover, which national law applies? In gainful employment As a matter of principle, employees and self-employed people are subject to the law of a single state, even if they work in several. Gainful employment in Switzerland only People who work exclusively in Switzerland come under the compulsory insurance provisions in Switzerland only, even if they live in another country signatory to the Agreement (this is known as the place of employment principle). Gainful employment both in Switzerland and in other contracting states Those who work simultaneously in Switzerland and in another contracting state (or in several contracting states) come under the compulsory insurance provisions in Switzerland if: n they live in Switzerland n they live in an EU country but work exclusively for an employer who is based in Switzerland. Any person who is self-employed in Switzerland but at the same time in gainful employment in an EU member state requires compulsory insurance cover both in Switzerland and in the other state. In each country only the income arising in that country is taken into account. Posted employees Employees who are working temporarily in Switzerland for a business based in the EU remain insured in the EU, and are not subject to compulsory insurance in Switzerland. This rule applies equally to self-employed persons who are working in Switzerland for up to one year. The existing bilateral social security agreements continue to apply to nationals of third countries sent to Switzerland from EU countries. The Old Age and Survivors Compensation Office can provide further information. Special rules apply to seamen, international transport employees, officials, persons employed by embassies and consulates, persons employed in cross-border businesses and persons who have been called up for military service. All are however generally subject to the law of a single state in respect of all branches of insurance. Persons without gainful employment Anyone living in Switzerland without gainful employment is subject to the Swiss regulations on compulsory insurance, in respect of all forms of insurance. People drawing a pension from an EU/EFTA State remain liable for health insurance in that country. In Switzerland, they are only liable for health insurance if they also draw a Swiss pension. Brief review of Swiss insurance schemes Health insurance Anyone taking up work in Switzerland, whatever his age or state of health, must arrange to be insured within three months of starting work by a health insurer who provides insurance under the basic health insurance scheme. The person is free to choose a health insurer amongst any of the companies authorised in the region he lives. However, the insurers may impose age limits or acceptance conditions in respect of voluntary supplementary insurance. If the person falls sick in Switzerland or in any EU/EFTA member state (under the so-called emergency assistance arrangements) he will receive whatever outpatient or inpatient treatment is necessary, at the expense of the Swiss health insurer. More detailed information can be provided by the health insurers and the Common Institution under the Federal Health Insurance Act in Solothurn. (See the contacts on page 25.)

«I still have strong 23 links to my home country.» Hendrika Broek, Netherlands This Dutch woman from Zwolle, now 78, came to Ticino with her husband in 1969 mainly for the climate. As her husband was already a pensioner neither required a work permit in Switzerland, and they had no problem getting a residence permit. Although Hendrika Broek went to Italian classes straightaway, and settled in quickly, she still doesn t feel fully integrated in Ticino. «As a foreigner I didn t find it easy to make many friends. If we had come to Ticino when we were younger and our children were still going to school we should have found it much easier to get to know people» she says. Hendrika and her husband found most of their friends in the Dutch Club. Hendrika still has close links to her home thanks to her children, who live there, and Dutch papers which she reads regularly. But she wouldn t like to go back to Holland: «I ve been in Switzerland so long that I shouldn t feel entirely at home in Holland either». Emigrated: 1969 Residence permit: Permit C. The formalities involved took some time, but she thinks that was «par for the course». What she likes about Switzerland: Ticino s pleasant climate, the beautiful landscape, security and cleanliness, and the quality of life. What she doesn t much like: difficulties getting integrated; and the fact that Swiss German is often spoken on radio and television rather than High German. Her recommendation to anyone thinking of immigration: learn the local language at once. What she hopes will come of bilateral relations with the EU: that the Swiss will become a little more open. (2002)