FAQ

There are numerous uncertainties and questions associated with the topic of contracting and freelancing. We are happy to answer the most important ones in our FAQ. This FAQ is divided into the following parts:

Cooperation

How much does the placement by PROSTAFF cost?

There are no fares for candidates.

How much does the personal support by our relationship managers and our administration team cost?

Nothing! We will support you throughout the entire duration of the project and will gladly provide you with information and answer any questions you may have.

Can I work with my Swiss sole proprietorship in a B2B relationship with PROSTAFF?

No, B2B cooperation is only possible in the legal form of a limited risk corporation and share capital corporation (legal entities). In addition, we have requirements on your social security obligations to ensure that the transaction is compliant (reference to the old age insurance income information sheet)

Can I co-operate with PROSTAFF with my company domiciled in the EU?

No, we do not co-operate with EU domiciled companies due to conditions regarding work permits and social insurance.

Can I co-operate with PROSTAFF in Switzerland as an EU Freelancer?

No, we do not co-operate with EU Freelancer regarding conflicts with work permits and social insurance.

Do I need health insurance in Switzerland?

Yes, while working in Switzerland, you are obliged to a Swiss health insurance coverage. There are only exceptions for certain border zones close by to Switzerland (see also here).

Work permit

I am a citizen of an EU/EFTA state and not resident in Switzerland, how do I get a work permit?

We can apply for a 90-day permit in the registration procedure.

This notification must be submitted a few days before the first work activity in Switzerland so that the confirmation can be issued in accordance with the regulations.

I am a citizen of a third country (non-EU/EFTA) and not resident in Switzerland, how do I get a work permit?

Citizens of non-EU/EFTA third countries are not legally required to obtain a work permit in Switzerland. Individual cases can be examined (reference to the information sheet).

PROSTAFF currently does not handle such cases due to the additional work and the increased requirements.

Wage deductions and social security

What deductions on the gross salary should I expect as a payrolling employee / temporary employee of PROSTAFF?

In Switzerland there are social deductions for AHV (old age insurance), ALV (unemployment insurance), EO/IV (maternity, military services and disability insurance), occupational benefits, non-occupational accident and daily sickness benefit insurance (see information sheet).

I am resident abroad, what happens to the retirement assets paid in Switzerland (AHV, pension fund (BVG))?

The AHV is also paid out to you abroad when you reach retirement age (reference to the FZA and EFTA information sheet).

You can have the BVG credit balance paid out when you leave Switzerland under certain conditions.

I am leaving Switzerland, what happens to the retirement assets paid in Switzerland (AHV, pension fund (BVG))?

People with a Swiss passport who work abroad for a Swiss employer can continue to receive the compulsory AHV/IV. In order to submit for this, it is mandatory to hand in an application within six months of emigration.

Swiss nationals who move to the EU or EFTA states (Liechtenstein, Iceland or Norway) are covered by the social security system in the country of destination.

All others can, under certain conditions, pay into the voluntary AHV/IV scheme in Geneva. The application for this must be submitted within one year of emigration and the applicant should have paid into the AHV/IV scheme for at least five years without interruption.

Pensioners are entitled to a pension if they have paid AHV contributions for at least one year and move to a country that has a social security agreement with Switzerland.

If they emigrate abroad and do not voluntarily continue to pay AHV, gaps in contributions occur every year, i.e. the pension at retirement age is considerably reduced.

What happens with the second pillar capital when emigrating depends mainly on the age of the person and the country of destination. 

Before retirement: If you move to a country outside the EU, you can draw the entire capital from the pension fund, while within the EU you can draw the extra-mandatory part. If you continue to be insured against the risks of death, disability and old age in the EU, the mandatory part is not paid out. Instead, the capital is paid into a vested benefits account or custody account and can be withdrawn at the earliest five years before regular retirement.

Date of (early) retirement: With most pension funds, retirement is possible at 58 years of age at the earliest. Only then can the assets be withdrawn from the pension fund as a lump sum or monthly pension. From this point on, it no longer matters whether you live in Switzerland or abroad.

After retirement: Once you have decided on a variant of the pension fund withdrawal, it can no longer be changed. Therefore, you no longer need to worry about it. Nevertheless, it is advisable to contact the pension fund before emigrating, as the funds have different regulations. To get a cash out payment, you must also prove that you are leaving Switzerland.

I live in Switzerland. As a payrolling employee / temporary employee, can I have family allowances settled via PROSTAFF?

Yes, as a Payrolling employee / temporary employee the family allowances can be settled via our compensation fund. The individual case will be checked and approved by the compensation office.

I am an EU citizen and not resident in Switzerland. Can I still receive family allowances in Switzerland?

Entitlement to family allowances begins with employment in Switzerland. If you already get family allowances in your home country, the difference will be paid out in Switzerland, provided the entitlement is higher in Switzerland. For this purpose, a form for the compensation office in the home country will be submitted, which PROSTAFF will provide you with.

Taxes

I am an EU citizen and domiciled in the EU, how does taxation work?

You are therefore subject to taxation at source in Switzerland (see information sheet).

I am a border crosser, how does taxation work?

For "genuine" cross-border commuters in the border zone adjacent to Switzerland, withholding tax is levied at 4.5%, which is credited in the home country of taxation. "Unreal" cross-border commuters, i.e. those who are further away than the border zone, are subject to normal withholding tax (see information sheet).

I am subject to withholding taxation in Switzerland, how high are the taxes for payrolling employees / temporary employees?

The withholding tax rates vary in each canton and also depend upon your civil status and children. Withholding taxes can change annually (see information sheet).

About FTA

I am subject to withholding tax in Switzerland, can I claim deductions?

With an annual income of CHF 120,000 or more, you will be requested by the tax authority to submit a regular Swiss tax return, where you can claim deductions. In most cases, the ordinary taxes calculated by the Swiss tax return end up lower, but the payback of the difference will take some time.