Working in Switzerland for a Foreign Employer
This article focuses on employees. ANobAG arrangements involving self-employed or board activities require a separate assessment.
Are you a Swiss or foreign national living in Switzerland while remaining employed by a company abroad? Or are you a foreign employer with an employee working from Switzerland? In both cases, the employment relationship can stay abroad, but Swiss compliance obligations do not stay there.
This is where ANobAG becomes relevant. In our experience, it is often treated as a registration exercise when it is really the outcome of a broader assessment: can the individual work from Switzerland, which social security system applies, what does the role create for the foreign business, and who will manage the obligations?
The question is not simply “Can we register an ANobAG?” It is “What is the correct Swiss setup for this specific employment arrangement?”
What is an ANobAG?
ANobAG stands for “Arbeitnehmende ohne beitragspflichtigen Arbeitgeber”, meaning an employee without an employer liable to pay Swiss social security contributions. It applies to both Swiss and foreign nationals when they work in Switzerland for an employer with no registered office or permanent establishment here and Swiss social security legislation applies.
Under a standard Swiss arrangement, the employer registers with the cantonal social security office, deducts employee social security contributions through the payroll and pays both portions. In an ANobAG arrangement, the employee takes on part or all of this administration. The division of responsibility follows the employer's location and the applicable coordination rules.
Assessing whether ANobAG is the right solution
1. Can the employee legally work from Switzerland?
ANobAG is a social security framework. It does not create a right to work or reside in Switzerland. Immigration eligibility must be confirmed separately, particularly for non-EU/EFTA nationals, taking account of the individual's existing Swiss status.
2. What will the employee do in Switzerland?
Continuing an existing role remotely is different from being placed in Switzerland to develop or represent the business. Swiss customers, contract negotiation or local representation can create permanent establishment, corporate tax, VAT or regulatory questions. ANobAG addresses the individual's social security position, not these company-level issues.
3. Where will the employee work?
Swiss residence alone does not determine the applicable social security system. A temporary posting, regular work in several countries or cross-border telework can produce a different result. The applicable social security legislation must be confirmed before registration.
4. Where is the employer based?
The employer's location determines the framework and division of responsibility. The analysis differs for the EU/EFTA, the United Kingdom, countries with a bilateral agreement and countries without one. Once these questions are answered, responsibilities can be allocated correctly.
Who is responsible for Swiss social security?
This is one of the most important, and most frequently misunderstood, distinctions within ANobAG arrangements.
| Employer based in the EU/EFTA or UK | Employer based outside these frameworks |
|---|---|
| Where Swiss legislation applies, the foreign employer remains responsible for employer obligations. The parties can agree that the employee administers and pays contributions on the employer's behalf, but the employer must fund its share and retains the underlying responsibility. | Where no coordination agreement shifts liability, the employee is responsible for registering and paying the applicable contributions directly. The employment agreement should state how employer-side contributions and related costs are funded. |
The social security position must be confirmed first, especially where work is performed in more than one country. Pension, accident insurance and other elements follow from the applicable framework and facts.
From assessment to ongoing administration
Once the framework is established, registrationis made with the cantonal social security office, expected remuneration is reported and payment instructions are issued. Actual remuneration is later reported and reconciled. The setup can include:
• AHV/IV/EO and unemployment insurance contributions
• Family allowance contributions and coordination of entitlements
• Occupational and non-occupational accident insurance
• Occupational pension coverage, mandatory or voluntary according to the case
• Payroll or contribution calculations and reporting
• Coordination with Swiss tax compliance and relevant immigration or corporate tax advice
A written agreement should define who manages registration, calculations, payments, insurance and year-end reporting, and how employer contributions, administrative costs and exchange-rate differences are covered. This prevents the employee from coordinating several providers without clear employer oversight.
Does an ANobAG need a Swiss payroll?
No. Social security contributions can be assessed and paid without conventional Swiss payroll and the foreign employer does not have a withholding tax obligation in Switzerland.
In practice, payroll or a structured contribution calculation is often valuable because it brings salary, deductions, social security, pension and insurance into one process. It also supports accurate reporting and the Swiss salary certificate, particularly where compensation includes bonuses, equity, benefits, expenses, foreign-currency salary or work in several countries. Payroll gives both employer and employee a clear view of the arrangement.
What about Swiss income tax?
ANobAG is a social security concept and does not remove Swiss income tax obligations. Salary remains subject to Swiss tax rules even when paid by a foreign employer. Where duties are also performed abroad, the applicable double taxation agreement and actual workdays determine the allocation of taxing rights, making reliable workday tracking important. Tax reporting is however an individual obligation, the foreign employer does not have a withholding tax obligation in Switzerland.
ANobAG or Employer of Record?
When a foreign company employs someone in Switzerland without establishing a Swiss entity, an Employer of Record (EOR) is often considered alongside ANobAG. The two models work differently.
With ANobAG, the individual remains directly employed by the foreign company. This preserves the employment relationship and the employer's control over contract, compensation and benefits while Swiss obligations are handled locally.
With an EOR, a Swiss provider becomes the formal employer and manages local employment administration. This suits a company that wants to outsource the employment relationship and provides duty-of-care value through a local HR and compliance contact. The provider's Swiss licensing position and the wider immigration and compliance facts still require careful review.
The right solution depends on immigration status, activities in Switzerland, the connection to the Swiss market, the desired employment relationship and business objectives. Neither structure removes company-level obligations.
Common misconceptions
“I am moving to Switzerland but keeping my foreign job, so nothing changes.”
The contract can stay abroad, but social security, insurance, pension, tax and immigration obligations can change.
“ANobAG means the foreign employer has no Swiss obligations.”
Incorrect. Under the EU/EFTA and UK frameworks, the employer remains legally responsible even when the employee handles administration.
“We can use ANobAG to develop the Swiss market without further analysis.”
ANobAG does not determine whether the activities create permanent establishment, corporate tax, VAT or regulatory obligations.
“The registration is the first step.”
The assessment comes first. Registration reflects the correct setup; it does not replace the analysis.
How Exactio can support
At Exactio, we support foreign employers and employees from initial assessment through ongoing administration. We confirm the applicable social security framework; identify payroll, insurance, pension and tax requirements and flag wider advice needs; support registrations and agreements with the authorities; coordinate accident insurance and pension arrangements; run payroll or contribution calculations and support salary-certificate reporting; support Swiss tax compliance; and act as a coordinated Swiss contact for employer and employee.
Our objective is straightforward: preserve the direct employment relationship where appropriate, define responsibilities clearly and manage Swiss obligations from the outset. This gives the employer oversight and allows the employee to focus on their role.
ANobAG considerations also arise outside a standard employment relationship, including where a person resident in Switzerland receives remuneration for a board mandate with a foreign company. Board mandates and genuine self-employment follow different classification rules and must be assessed separately.
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