Case Study: Remote Working Of An EU Citizen

Situation:

Ms. Ivana Petrović is a Croatian national residing in Zagreb, Croatia. She specializes in business law and anti-corruption and has gained several years of experience working in a law firm. During this time, she developed valuable expertise in compliance and international economic crime. Due to her strong interest in investigative journalism and her passion for uncovering misconduct, she decided to combine her legal knowledge with journalistic work. She was offered a position as an investigative journalist at a renowned Swiss publishing house. This publisher places great importance on well-founded research and frequently collaborates with international investigative platforms and NGOs.

Ms. Petrović is an excellent negotiator, and the parties agree on the following points:

Work Arrangement and Travel:

Remote work from her home office in Zagreb using modern communication tools and secure data channels for transmitting sensitive documents.
Quarterly trips to Zurich for editorial meetings and workshops.
Occasional research trips to European capitals to conduct on-site investigations and interviews.
Flexible working hours with clear deadlines for articles and reports.

Contract and Compensation:

Employment contract based on Swiss law with the publishing house in Zurich.
Fixed salary in Swiss francs plus additional fees for extensive research assignments.
The contract stipulates remote work from Croatia while reporting to the Swiss company's management.

1. Swiss Work Permit Regulations

Although Ms. Petrović lives in Zagreb and works remotely for a Swiss publishing house, she is subject to certain work permit regulations when working regularly on-site in Switzerland.

Freedom of Movement for Croatian Citizens

Croatia has been a contracting state of the Agreement on the Free Movement of Persons (FMPA) with Switzerland since January 1, 2017. Full freedom of movement applied from 2022. However, due to high immigration, quotas for residence and short-term residence permits were introduced in 2023 and 2024, which were already exhausted for 2024. From January 1, 2025, Croatian citizens will again have unrestricted access to the Swiss labor market. If immigration exceeds a certain threshold, the Swiss government may impose restrictions again in 2026. From 2027 onward, full freedom of movement will be permanently guaranteed.

Possible Scenarios

Depending on the duration of her work in Switzerland, different permits may be required:

a. Short-Term Visits (up to 90 days per year)

For stays under 90 days per year (e.g., for editorial meetings or workshops), Ms. Petrović does not need a residence permit but must register online:
Registration via the online notification system (https://meweb.admin.ch/meldeverfahren/) at least 8 days before starting work.
No quota restrictions apply as long as the 90-day limit is not exceeded.

b. Short-Term Residence Permit (L-Permit) for work periods over 90 days per year

Valid for up to 12 months.
No quota restrictions from January 1, 2025.
Application requires a work contract and rental agreement, submitted to the local registration authority.
Biometric data must be recorded.
The permit requires residence in Switzerland, which is unlikely to be an option for Ms. Petrović.

c. Residence Permit (B-Permit) for Long-Term Work Periods

Valid for up to 5 years for permanent employment or contracts exceeding one year.
Unlimited permits available from 2025.
Same application process as the L-permit.

d. Cross-Border Commuter Permit (G-Permit)

Since Ms. Petrović resides in Croatia, she could theoretically apply for a cross-border commuter permit.
However, this requires a minimum presence of 20% per week in Switzerland, which she does not fulfill.

2. Employment Law Considerations

Despite having a Swiss employment contract, mandatory labor law provisions from Croatia must be considered, including minimum wage, working hours, vacation, and public holidays.
Since she is subject to Croatian social security law, regulations on continued salary payments in case of illness or accident must be adjusted accordingly.

3. Payroll Processing

The publishing house maintains payroll accounting in Switzerland and a shadow payroll in Croatia.
Croatian payroll processes social security and tax contributions, which are reflected in the Swiss payroll records.
Swiss withholding tax is deducted for workdays spent in Switzerland.

4. Social Security Considerations

Since Croatia is an EU member, the Free Movement Agreement applies.
As Ms. Petrović performs more than 25% of her work in Croatia, she is subject to Croatian social security obligations.
The publishing house must pay Croatian social security contributions.
An A1 certificate must be obtained to facilitate a Swiss AHV (Old Age and Survivors' Insurance) audit.

5. Tax Considerations

As her residence is in Croatia, she remains fully taxable there.
Her income from Switzerland must be taxed in Croatia.
Swiss withholding tax is deducted for workdays in Switzerland but credited under the double taxation agreement with Croatia.

6. Key Points and Recommendations

For visits up to 90 days per year in Switzerland: Online registration is sufficient.
For longer work periods: L or B permits are required (without quotas from 2025).
Employer and employee should strategically plan work assignments to optimize compliance with permit regulations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.