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Our business operations are often characterized by intra-company transfers. The most common case of an intra-company transfer (ICT) in Switzerland concerns the transfer of executive or specialized staff from a foreign group entity to a Swiss subsidiary or branch.
Most often, the following situation applies:
→ Assignment of executives or specialists (non-EU/EFTA) to the Swiss group company.
Example:
An IT manager from the U.S. headquarters is assigned to the Swiss subsidiary for two years to establish a new project or team.
Background and Legal Framework
1.Legal basis:
Article 19a of the Ordinance on Admission, Period of Stay and Gainful Employment (VZAE), implementing the EU Directive on Intra-Company Transfers (2014/66/EU).
Primarily applicable to third-country nationals (non-EU/EFTA).
- Eligible categories:
- Executives/managers
- Specialists (with company-specific knowledge)
- Trainees (for training within the group)
- Duration:
- Generally 3 to 5 years for executives/specialists
- 1 year for trainees
- Work Authorization Law
Nationwide (Switzerland)
For third-country nationals (non-EU/EFTA): admission to the Swiss labor market is only possible under specific conditions, particularly under Articles 18 ff. of the Foreign Nationals and Integration Act (AIG) and the VZAE. In the area of intra-company transfers, the State Secretariat for Migration (SEM) specifies in its guidelines that executives and highly qualified specialists may be approved under facilitated conditions within the framework of an intra-company transfer.
Additionally:Third-country nationals assigned for more than 120 days are subject to quota restrictions.
- Specifics for the Canton of Zurich
Typical conditions for an intra-company transfer include:
- Specific Procedures in the Canton of Zurich
Permit types: Usually, a 120-day work permit within a 12-month period is issued.
For longer stays:
- L short-term residence permit: assignment contract up to 364 days
- B residence permit: assignment contract over 364 days
The Office for Economy and Labor (Amt für Wirtschaft und Arbeit, AWI) is responsible for work permits in Zurich.
Documents required:For third-country nationals, the following are typically needed:
- Diplomas and employment certificates
- CV
- Copy of passport
- Assignment letter or assignment contract (if duration >120 days)
Quotas:Zurich applies the same national quotas as other cantons — annual limits for third-country nationals and seconded EU/EFTA citizens.
Assignment vs. local employment:Distinction is made between:
- Assignment (employment contract remains abroad), and
- Local employment (new Swiss employment contract).
Change of function or canton:If someone is already working in Switzerland and changes employer or canton, new permit requirements may apply. In principle:
- 120-day permits are project-based and linked to one employer; a job change requires a new authorization process.
- For L/B permits, continuing work for the same client/project in another canton may be possible with consent.
- New projects cannot be approved until the initial permit expires.
- Practical Tips & Recommendations
- Apply early: Since authorization must be obtained before work starts, HR/legal departments should plan well in advance.
- Maintain thorough documentation: Qualifications, employment relationship, assignment duration, and salary/working conditions must be clearly documented.
- Clarify the permit category: Determine whether it is a pure assignment or local employment and identify the effective duration.
- Monitor duration: Transfers are generally limited to 3 years (extension possible).
- Tax and social security: Payroll tax, social insurance, and double taxation implications must be reviewed thoroughly after approval.
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.
