Auslandschweizer returning to Switzerland while working for a UK company

We (both foreign Swiss passport holders currently resident in Germany) are considering a move back to CH in the next few years, and we are trying to get all our information together to make it possible.

My husband works for a UK company. We have a tax advisor here in Germany that acts as his monthly payroll as well as handling all tax matters for us. Obviously we pay for this service, but it is 100% worth it. My first question would be: are there such individuals in Switzerland?

Secondly, I assume he would have to pay his AHV and BVG contributions himself, or would his UK employer be required to match them?

We already have AHV numbers as we both worked in Switzerland before, 20 years ago. There is a possibility that I can get a job in a different part of my current organization so AHV and BVG contributions would be no problem for me. I have a pension pot that I would transfer from the UK, and we also have some investments, so at some point we would need to look at retirement pensions but the most immediate question relates to his contributions for 1st and 2nd pillar.

Thanks for any answers you might be able to offer.

Hi April,

To answer your first question: Yes, there are numerous payroll companies in Switzerland, and using these is really the simplest way to go about it.

To answer the second question: As far as I know, the rules for the UK have remained pretty much the same as they were pre-Brexit. In that case, if your hubby does at least 20 percent of his work from Switzerland (e.g. home office), then he is subject to Swiss social security.

His UK employer is obliged to make the same contributions that Swiss employers do. In other words, his employer will have to cover half his Swiss AHV/IV contributions, get him a Swiss pension fund and pay half the contributions, get him occupational accident insurance (and pay for the part which covers accidents in the workplace in full), etcetera.

This would be the case with employers in EFTA and EU countries. It's possible that something has changed with regards to the UK in the meantime, as the bilateral agreements are a work in progress, but if it has, I am not aware of it.

It is the foreign employer's obligation to sign sign up for and administrate all of these Swiss social insurances, pension fund, etc. But they may designate your husband to take care of it on their behalf.

Many employers prefer to work with a Swiss payroll company instead of handling it themselves. Being employed by a Swiss (payroll) company gives you an advantage in that it is easier to claim your Swiss rights with regards to things like paid holidays and paid sick leave. But I would recommend asking your employer to cover at least part of the payroll company's fees.

About that pension pot: Transfering UK pension benefits to Switzerland is tricky. As far as I know, there is no way to transfer directly to a Swiss pension fund or vested benefit foundation (with the exception of a handful of Swiss pension funds which qualify as QROPS). You would have to withdraw the benefits in the UK, with the taxes that come with that. You could make voluntary tax-deductible contributions to a Swiss pension fund (if you become employed here) or the pillar 3a, but that might not balance out the tax you paid for withdrawal. I suggest you get clear information about tax implications from your UK pension fund before you withdraw. You may be better off leaving the money there until you reach retirement age.

Have a lovely day