Relocating to Switzerland is more than a question of permits or taxes. For individuals, entrepreneurs and companies, immigration, employment, tax and corporate law are all interconnected. Individuals and companies cannot be fully separated in this context: when an entrepreneur relocates their centre of life, management functions, shareholdings and operating activities are often relocated as well, and conversely, a company’s relocation is not limited to corporate and tax law where founders or senior employees are also moving to Switzerland. The following five questions therefore provide a brief overview of both sides.
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What legal basis is required to relocate to Switzerland?
CORPORATE
Companies relocating to or establishing themselves in Switzerland essentially have four routes available:
- Cross-border transfer of seat (redomiciliation) without liquidation under Article 161 of the Swiss Private International Law Act (PILA) — provided it is permissible under foreign law and the Swiss incorporation requirements are met.
- New incorporation of a stock corporation (AG) or limited liability company (GmbH).
- Registration of a branch, which has no separate legal personality.
- Merger or asset transfer — noting that the Merger Act does not exhaustively regulate cross-border variants, so corporate, private international, tax and registry requirements must be examined together.
The choice depends on liability, financing, governance, regulation and functional integration. Company relocation and the admission of employees are also separate procedures: for executives, specialists and other third-country nationals, the employer must file a separate application for each individual.
INDIVIDUALS
For nationals of the EU and EFTA, access is governed by the Agreement on the Free Movement of Persons; longer periods of gainful activity generally require a permit. For third-country nationals, there are five main routes: EU/EFTA free movement, admission to gainful activity, family reunification, purpose-bound stays without gainful activity, and discretionary permits based on important public interests. What matters is always the activity actually carried out; incorporating a company does not, by itself, confer a right of residence.
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Where is the tax domicile located?
CORPORATE
Legal entities are subject to tax on the basis of personal affiliation if their registered office or place of effective management is located in Switzerland or in a given canton. Where the two diverge, the main intercantonal tax domicile lies at the place of effective management; a purely formal registered office does not displace it. Effective management is where the company’s ordinary business is predominantly conducted and its essential decisions are made — as distinct from administrative acts and the oversight- and policy-only functions of the top governing bodies. For holding companies, the actual shareholding and steering functions are decisive.
INDIVIDUALS
Individuals are subject to tax if they have their tax residence or tax sojourn in Switzerland. What matters is the objectively recognisable centre of vital interests, not registration or the residence permit. In the absence of tax residence, a tax sojourn arises after 30 days with gainful activity or 90 days without. If ties to the country of origin remain, dual residency may result, which the applicable double taxation treaty resolves.
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What minimum requirements must be demonstrated?
CORPORATE
There is no uniform statutory substance threshold; the required presence depends on the activity, the group’s role, applicable treaty law and regulation. A consistent picture emerges in particular from:
- Personnel presence: places of work and personnel actually working on site.
- Physical presence: own premises, together with the corresponding lease or purchase agreements.
- Decision-making processes: minutes, authorities and resolutions of governing bodies that reflect the actual place of decision-making.
- Financial infrastructure: banking powers and accounting at the registered office.
- Consistent documentation: contracts and correspondence that match the other evidence.
Inconsistent records are a particular risk — for example, minutes naming Switzerland as the place of decision-making while emails, calendars and the actual place of work point elsewhere, or functions being allocated for transfer-pricing purposes without the corresponding personnel and infrastructure.
INDIVIDUALS
Housing arrangements, physical presence, family, professional activity and social ties must together form a coherent picture. Both the relinquishment of the previous domicile and the actual establishment of the new centre of life must be demonstrated; available housing alone, without evidence of an actual lifestyle, is not sufficient. It is particularly risky to claim non-gainful status while, in fact, continuing to run an operating business.
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What tax consequences should be examined?
CORPORATE
Matters to review include the tax consequences of contributions and restructurings, the participation deduction, financing, withholding tax, issuance stamp duty, VAT, and hidden reserves at the beginning or end of Swiss tax liability. The arm’s length principle applies to cross-border transactions; where management or value-creating functions are relocated, transfer prices and contracts may need to be adjusted. Advance rulings and tax rulings provide legal certainty only for the facts disclosed and actually implemented — a Swiss ruling does not bind foreign authorities.
INDIVIDUALS
In the case of dual residency, the question of allocation under the applicable tax treaty arises. Lump-sum taxation is not a general privilege for new arrivals; it requires, among other things, that no gainful activity be carried out in Switzerland and that the person take up residence for the first time, or after an absence of at least ten years. Cantonal wealth, inheritance and gift taxes, as well as existing marital, inheritance or shareholder agreements, should be reviewed before the move.
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What matters most in implementation?
CORPORATE
The starting point is a stocktake of the individuals, companies, functions, assets, contracts and permits involved, followed by a target structure with clear responsibilities and a timeline. A decision and dependency matrix shows which measure requires which permit or preliminary question, who is responsible, and which deadline applies. A company incorporated before its function and personnel are settled may, in some cases, remain a shell without viable substance. A follow-up review after the first business year should reconcile travel days, management decisions, personnel, contracts, cost allocation and permit conditions — relocation is only complete once the structure is operationally sound.
INDIVIDUALS
Transfers of assets or a change of residence carried out before the exit-taxation position in the country of origin has been clarified can trigger tax consequences that can no longer be corrected. Swiss planning must therefore be reconciled with the law of the country of origin, in particular with regard to exit taxation, relinquishment of domicile and reporting obligations. After implementation, the structure must continue to be monitored, since changes in place of residence or activity can alter permits and tax domicile.
This article is a condensed version of the full article by Dr. Alexander Schiemenz. Read the full publication in the Anwaltsrevue (Stämpfli Verlag) →
Making relocation to Switzerland a success
Individual and corporate relocation are interconnected legal projects. What matters most is the target structure, the sequencing, coordination with the authorities, and implementation that is actually lived and documented. Our team advises individuals, entrepreneurial families and companies on relocation to Switzerland. Contact us for a complimentary initial consultation.
Web Workshop: Corporate Relocation to Switzerland
Explore this topic further at our web workshop on Relocation to Switzerland for international businesses, corporations, entrepreneurs and investors.
September 3, 2026 | 11:00 (CEST) | Online via Microsoft Teams
