Laws Affecting Foreign Residents in Switzerland Most Significantly
In Switzerland, several key federal laws outline the rights and obligations for foreigners living and working in the country. Here's a brief overview of these laws:
- Agreement on the Free Movement of Persons (AFMP): Effective since 2002, this bilateral agreement between Switzerland and the European Union allows EU citizens to live and work in Switzerland without restrictions. It grants them the same employment rights as Swiss citizens, including recognition of professional qualifications, access to the labor market, property purchase rights, and coordination of social security systems. This agreement also extends similarly to Norway, Iceland, and Liechtenstein under EFTA arrangements.
- Foreign Nationals and Integration Act (FNIA): This federal law generally regulates the admission, residence, and integration of foreigners in Switzerland, setting out their rights and duties, including the issuance of visas and residence permits, as well as conditions for work.
- Federal Act on Swiss Citizenship: This act governs the acquisition and loss of Swiss citizenship. While it is not detailed in this article, it typically includes provisions for naturalization, including facilitated processes for foreigners who meet certain criteria.
- Federal Act on the International Automatic Exchange of Information in Tax Matters (AEOI): This act mandates the automatic exchange of financial account information between Switzerland and partner countries to enhance tax transparency and compliance for foreign nationals residing or having financial interests in Switzerland.
Together, these laws establish the legal framework that defines the rights (such as freedom to work, live, and access social benefits for certain foreigners under AFMP) and obligations (such as visa/residence permit requirements and tax compliance) for foreigners in Switzerland.
For a more detailed understanding of the specific legal rights of foreigners compared to Swiss citizens, we recommend reading our separate article titled "Do foreigners in Switzerland have the same legal rights as the Swiss?"
It is important to note that if you are a tax-compliant foreign resident, you have nothing to fear from the AEOI law.
[1] Source: Swiss Federal Council, Federal Department of Justice and Police, and Swiss Federal Tax Administration websites.
- After establishing permanent residency in Switzerland through the Agreement on the Free Movement of Persons (AFMP), many foreigners might be interested in investing in local real estate, home-and-garden assets, or even the Swiss stock market as part of their lifestyle planning for a long-term stay.
- Given the automatic exchange of financial account information (AEOI) between Switzerland and partner countries, it is crucial for foreign residents to maintain financial transparency and tax compliance to not only ensure legal standing under the AEOI law but also to facilitate smooth investing and lifestyle management in the Swiss finance sector.
