Switzerland’s relationship with the European Union (EU) is deeply interconnected, among others concerning migration and labor mobility. For decades, Switzerland has negotiated independent agreements to regulate cross-border movement and safeguard economic cooperation with the EU, allowing it access to the EU’s single market without full membership. The Agreement on the Free Movement of Persons (AFMP) is one such agreement, supporting relocation and employment opportunities for EU citizens in Switzerland and vice versa. With Bilateral III, Switzerland and the EU are now seeking to refine and expand these arrangements to adapt to evolving economic and social demands, while aiming for a more balanced approach to immigration and market access.
Currently, EU nationals make up 1.5 million residents in Switzerland, which, according to the Federal Council, represents almost 16% of the Swiss population. In addition, approximately 391,000 cross-border commuters bring essential expertise to Switzerland’s finance, healthcare, research, and technology sectors. These migration flows have been crucial for Swiss industries facing skilled labor shortages, yet they also bring challenges in aligning domestic policies with EU standards.
In this insight, we address the key questions surrounding Swiss-EU migration and the evolving Bilateral III framework.
What is Bilateral III in Swiss-EU relations, and how did it emerge?
Bilateral III, also referred to as the “package approach,” represents the newest stage in Swiss-EU relations. It builds on sector-specific agreements established under Bilateral I and Bilateral II, which grant Switzerland selective access to the EU’s single market while allowing it to remain outside the EU. This package approach introduces new agreements and institutional mechanisms to balance Switzerland’s need for market access with the EU’s requirements for regulatory consistency across its member states. Bilateral III aims to address core issues such as the free movement of persons and labor market access, as well as expanding into other critical areas including energy cooperation, food safety, health, and enhanced participation in EU research and educational programs like Horizon Europe and Erasmus.
Chronological Development of Bilateral Swiss-EU Relations:
✔ 1992: Swiss voters rejected membership in the European Economic Area (EEA). Following this decision, Switzerland and the EU began forging bilateral agreements to maintain strong economic ties and cross-border cooperation.
✔ 1999: Bilateral I agreements were signed, focusing on trade, civil aviation, and the free movement of persons, forming a framework for Swiss access to the EU single market.
✔ 2004: Bilateral II agreements expanded on this framework, covering areas such as security, asylum, and environmental cooperation.
✔ 2013: The Swiss Federal Council adopted a mandate to negotiate institutional matters with the EU, aiming to ensure that Switzerland could dynamically adopt relevant EU legislation in areas covered by bilateral agreements.
✔ 2021: Negotiations on an institutional framework agreement ended without conclusion. This led to a renewed need for a comprehensive negotiation package to address the evolving requirements of Swiss-EU relations.
✔ 2022: The Swiss Federal Council and EU initiated exploratory talks on a new package approach (Bilateral III), which would address immigration, wage protection, and Switzerland’s role in new EU initiatives like energy and food safety.
✔ October 2023: A Common Understanding was reached, outlining broad goals for a balanced Swiss-EU relationship that protects Swiss sovereignty while enhancing economic ties. This agreement highlighted both parties’ commitment to dynamic alignment in specific sectors and introduced the concept of Swiss participation in EU programs like Horizon Europe.
✔ March 2024: The Swiss Federal Council issued the Definitive Negotiation Mandate to initiate formal Bilateral III negotiations. This mandate emphasizes mutual respect for legal autonomy, measures for the free movement of persons, and provisions for regulatory alignment in specific sectors.
Bilateral III thus reflects a strategic evolution in Swiss-EU relations, addressing both countries’ economic needs while establishing guidelines for the free movement of EU citizens in Switzerland, bolstering Swiss stability and integration within Europe.
What are the current legal requirements for EU citizens relocating to Switzerland?
EU citizens relocating to Switzerland benefit from the Agreement on the Free Movement of Persons (AFMP), under which EU-citizens’ professional qualifications are recognized. This way their access to the Swiss labor market for regulated professions is simplified: What is more, the AFMP grants EU-citizens the right to live and work in Switzerland under certain conditions. The AFMP enables EU citizens to enter Switzerland without a visa and stay up to 90 days without registration if they are visiting for short-term stays. For longer stays, however, they must register with Swiss authorities in their municipality within 14 days of arrival and apply for the appropriate residence permit. Each permit type has a set of requirements aligned with the individual’s purpose of stay. In this case, the EU-citizens must meet specific legal requirements based on their employment status or financial situation, as follows:
- Employment-Based Residence: EU citizens with a valid employment contract in Switzerland can apply for a residence permit, provided they meet the requirements for either a short-term (L) or long-term (B) residence permit. The L permit covers stays of up to one year for short-term assignments, while the B permit is granted for continuous employment​.
- Self-Employment: EU-citizens can relocate to Switzerland to pursue self-employment, provided they can demonstrate the viability of their business. They must show proof of self-employment status and financial independence to obtain the necessary residence permit.
- Non-Employed Individuals: EU citizens who are not employed – such as retirees, students, or those relocating for personal reasons – must demonstrate sufficient financial resources to support themselves and possess comprehensive health insurance coverage. This is mainly to ensure they will not require Swiss social assistance during their stay.​
- Family Reunification: Under AFMP, family members of EU citizens legally residing in Switzerland also have the right to join them. Eligible family members include spouses, children, and, in some cases, dependent parents or grandparents. The primary resident must be able to support their family members financially.​
What key points are outlined in the 2023 Common Understanding and the 2024 Definitive Negotiating Mandate on immigration?
The outline pivotal steps in the evolving immigration framework between Switzerland and the EU, aiming to strengthen cooperation while addressing mutual concerns. Here are the main points regarding immigration:
✔ Free Movement of Persons (FMP): Both documents confirm the goal of dynamically aligning Swiss and EU regulations related to the free movement of persons. Switzerland commits to adopting relevant EU legislation with the flexibility to implement exceptions that uphold Swiss constitutional principles and national interests. This dynamic alignment ensures regulatory uniformity while accommodating Switzerland’s unique legal and social structures.
✔ Employment-Based Residency and Labor Market Access: The alignment process includes specific provisions to facilitate EU citizens’ access to the Swiss labor market while respecting Swiss wage protection measures. Switzerland aims to prevent potential misuse of social benefits by requiring EU jobseekers who are Swiss residents to show active efforts in finding employment and compliance with residency requirements. For posted workers, both documents emphasize Switzerland’s commitment to the “equal pay for equal work in the same place” principle, which ensures fair conditions for temporary EU workers.
✔ Safeguards Against Social Security Misuse: Provisions in both documents allow Switzerland to refuse social assistance to economically inactive EU citizens who lack sufficient financial resources, particularly during their initial stay period. Switzerland retains the right to expel non-employed EU citizens who no longer satisfy residency requirements, provided this action is applied proportionally and without discrimination. Additionally, EU jobseekers in Switzerland will be required to follow instructions from regional employment offices (RAV). If they do not comply, Switzerland generally retains the authority to expel them to ensure adherence to local residency and employment regulations.
✔ Permanent Residence and Long-Term Residency: The 2024 Negotiating Mandate proposes standardized criteria for granting long-term residence permits, such as a , while maintaining integration requirements. According to the 2024 Negotiating Mandate, the right of permanent residence should be restricted to persons who are gainfully employed and not dependent on social assistance, as well as to their family members. Both parties have agreed in the 2023 Common Understanding on non-discriminatory access to long-term residency for Swiss and EU citizens who meet such criteria.
These points highlight Switzerland and the EU’s shared commitment to effective immigration control, fair labor standards, and mutual respect for social welfare systems, reflecting a balanced approach to dynamic regulatory alignment in immigration policies.
What is the current status of Swiss-EU immigration negotiations, and what changes could impact immigration policies?
Swiss-EU immigration negotiations currently face a major challenge due to the EU’s decision to reject Switzerland’s proposal for a unilateral safeguard clause on free movement. This clause, proposed by Switzerland, would allow it to temporarily limit immigration in response to specific thresholds of incoming EU citizens. EU Commission President Ursula von der Leyen communicated to Swiss Federal President Viola Amherd on October 1, 2024, that the EU would not accept such a provision, viewing it as inconsistent with EU policies on equal access to the single market. The EU has emphasized that free movement is a core principle that must be uniformly applied across member states, including agreements with non-EU countries like Switzerland​.
Negotiations remain active, with both sides working toward a comprehensive agreement by year-end. Although the EU has indicated a willingness to continue discussions, any compromise on the safeguard clause appears difficult to achieve. This situation may encourage Swiss policymakers to consider alternative domestic measures that address immigration and labor concerns without requiring EU concessions. These alternatives could involve strengthening wage protection measures or other social policies to manage potential impacts of immigration within Switzerland​.
When will the new Swiss immigration legal framework be implemented?
The timeline for implementing the new Swiss immigration framework depends on the ongoing negotiations with the EU. The Swiss Federal Council and EU officials aim to finalize the agreements by the end of 2024, focusing on a comprehensive package that includes not only immigration but also other areas like wage protection and bilateral cooperation in sectors such as energy and research. However, any final agreement will need to pass a public vote in Switzerland, extending the deadline for its application to no earlier than 2028.
The safeguard clause proposed by Switzerland, which would allow unilateral control over immigration levels, remains a significant point of contention. While negotiations are progressing, Switzerland may have to find alternative solutions to address immigration concerns domestically if a compromise with the EU cannot be reached.
The evolving Swiss-EU migration framework, highlighted by Bilateral III, represents a crucial development for EU citizens considering relocation to Switzerland. While these changes open doors for new opportunities, they also bring complex legal requirements that need careful navigation, whether you’re moving independently, bringing family members, or managing cross-border employment.
At LINDEMANNLAW, our legal experts are uniquely qualified, with admissions to both the Swiss and EU bars, allowing us to expertly handle matters at the intersection of these jurisdictions. Our team is committed to ensuring that you understand your rights and responsibilities within this evolving legal landscape, offering clear solutions for residence permits, employment regulations, and compliance with Swiss-EU agreements. Contact us today for personalized legal support on all aspects of Swiss-EU relocation and migration.
