Operating in Switzerland with a Foreign Company (France, Spain, United Kingdom): Legal, Tax and VAT Obligations — Comprehensive 2026 Guide

Introduction: RISTER Fiduciaire Geneva, Your Partner for Cross-Border Projects in Switzerland

In a context where industrial projects and installation works are expanding between the European Union and Switzerland, many foreign companies — French, Spanish, or British — are awarded contracts on Swiss territory: construction, assembly, installation of production lines, delivery and commissioning of equipment.

However, operating in Switzerland, even temporarily, requires careful preparation. The legal, tax, and social framework is strict. Each foreign company must anticipate its obligations in terms of posted workers, Swiss VAT, insurance, customs, labor law, and permanent establishment risk.

At Geneva-based RISTER – Fiduciary in Geneva, we have assisted foreign companies for more than 10 years with full compliance in Switzerland:

Swiss VAT fiscal representation,
Branch creation,
Accounting and tax management,
Payroll and social declarations,
Company domiciliation,
Swiss resident director and manager mandates.

This Comprehensive 2026 Guide, prepared with RISTER’s expertise, sets out all the rules you must know before starting an industrial project or temporary assignment in Switzerland.

1. Prior Notification and Posting of Workers

Any foreign company performing work in Switzerland must declare its posted employees at least 8 days before the start of the project via the official SECO online portal.

This procedure is mandatory for all sectors — construction, electrical, mechanical, industrial, assembly, and others.

Key points:

Online notification before any service begins.
Declaration must include: location, client, duration, names of employees, and contract.
Mandatory even for short but recurring interventions.
Proof of compliance must be kept throughout the project.

Failure to comply may result in site suspension or fines up to CHF 30,000.

RISTER can handle these declarations on behalf of the company, prepare compliance certificates, and ensure that all workers meet Swiss minimum standards.

⚠️ Sanctions and Bans on Operating in Switzerland

Failure to comply with the Posted Workers Act (LDét) and its implementing ordinance may lead to severe administrative and financial penalties. In cases of violations concerning prior notification, minimum wages, working conditions, or posting duration, SECO (State Secretariat for Economic Affairs) and cantonal authorities may impose:

Administrative fines of up to CHF 30,000 per breach;
Temporary or permanent bans on providing services in Switzerland;
Forced termination of the project or denial of site access for the affected workers.

SECO publishes a monthly official list of sanctioned employers called RESA LDét – Bans on Service Provision in Switzerland.

This list, available publicly on SECO’s website (updated PDF, e.g., RESA LDet – Bans on Service Provision in Switzerland, 06.10.2025), includes only employers prohibited from offering services in Switzerland.

However, it is also possible to request the complete list of employers sanctioned by a final decision, even without a service ban.

These publications aim to protect the Swiss labor market and ensure fair competition between local and foreign providers.

They serve as a reminder that compliance with posting, salary, and social obligations is essential for any foreign company wishing to operate sustainably in Switzerland.

RISTER Fiduciary Geneva assists clients in mitigating these risks by ensuring every project, installation, or temporary service fully complies with the LDét and cantonal requirements — thereby avoiding any appearance on SECO’s sanction list.

2. Labor Law and Social Security

Posted employees must benefit from the same minimum working conditions as Swiss workers.

This includes:

Minimum wage according to the collective labor agreement (CCT) or canton,
Working hours, safety, accommodation, rest periods,
Accident insurance (SUVA or equivalent).

For EU/EFTA companies, the A1 form proves social insurance coverage in the home country.
Without it, Swiss social contributions (AVS) must be paid.

RISTER verifies social coverage, payroll compliance, and can register employees under AVS, LAA (accident), loss-of-income, and LPP pension plans where necessary.

3. Swiss VAT and Fiscal Representation

From CHF 100,000 global turnover, a foreign company operating in Switzerland must:

Register for Swiss VAT;
Appoint a Swiss-based fiscal representative;
File quarterly VAT returns with the Federal Tax Administration (AFC);
Apply Swiss VAT (8.1%) on locally performed services.

Typical taxable activities:

Delivery and installation of equipment,
Machinery assembly,
Construction work,
On-site maintenance.

RISTER acts as the Swiss VAT fiscal representative for foreign companies — handling registration, VAT recovery, filings, and relations with the tax authorities.

4. Permanent Establishment and Taxation in Switzerland

A project lasting more than 12 months may create a permanent establishment under double tax treaties.

This implies:

Swiss taxation on profits related to the project,
Obligation to keep Swiss accounting records,
Registration in the Commercial Register,
Filing of cantonal and federal tax returns.

RISTER assesses each case to avoid double taxation, sets up the optimal structure (branch, subsidiary, or service contract), and ensures full accounting and tax compliance.

5. Customs and Import of Equipment

Foreign companies importing tools, machinery, or materials must:

Declare goods at Swiss customs,
Pay import VAT (refundable if VAT-registered in Switzerland),
Use an ATA Carnet for temporary imports,
Keep customs documents for each entry and exit.

RISTER coordinates all customs procedures and optimizes VAT recovery, avoiding unnecessary financial loss.

6. Insurance, Safety and Liability

Professional and project liability insurance is mandatory.
Accident insurance (LAA) required for all staff declared in Switzerland.
Compliance with SUVA and cantonal workplace safety standards must be verified.

RISTER helps companies select the right insurance coverage according to the duration and nature of the project, in collaboration with licensed Swiss insurance brokers.

7. Local Coordination and Client Obligations

The Swiss project owner (client) shares responsibility in case of undeclared work or breach of posting conditions.

They must verify all compliance certificates, insurance, and salary documentation.

RISTER provides a comprehensive compliance file to be submitted to the Swiss client:

Swiss VAT certificate,
Proof of social insurance coverage and accident protection,
SECO posting declaration,
Posting contracts,
Commercial register extract or branch certificate.

8. Compliance Checklist (Summary)

Area	Key Obligation	Authority
Posting	Notification 8 days before work	SECO / Canton
Work permits	Required if mission > 90 days	SEM / Canton
VAT	Registration + Swiss fiscal representative	AFC
Permanent establishment	If project > 12 months	AFC / Commercial Register
Salary	Minimum wage or CCT	Labor Inspectorate
Social security	A1 form or AVS registration	AVS / SUVA
Equipment import	Customs, ATA carnet, import VAT	OFDF
Insurance	Liability & project insurance	Private insurers
Documentation	Retention for 10 years	Cantonal audit

Conclusion

Operating in Switzerland with a foreign company requires thorough preparation and coordinated legal and tax compliance.

With its recognized expertise in international taxation, Swiss VAT, and business management, RISTER Fiduciary Geneva assists French, Spanish, and British companies through every stage of their Swiss operations.

Thanks to RISTER’s support, your company can focus on technical project success — in full compliance with Swiss law.

FAQ — Operating in Switzerland with a Foreign Company

1. Can a foreign company work freely in Switzerland?
No. It must file a prior posting declaration before work begins and comply with Swiss wage and insurance rules.

2. What are the deadlines for posting declarations?
At least 8 days before starting the assignment on SECO’s portal.

3. Which companies are affected?
All sectors — construction, electrical, industrial, mechanical, assembly, IT, maintenance.

4. Are work permits required for employees?
Yes, if the assignment exceeds 90 days per year per company.
For the United Kingdom, stricter rules apply — authorization is often required from the first day.

5. When is Swiss VAT registration mandatory?
Once global turnover exceeds CHF 100,000, even if the head office is abroad.
The company must then appoint a Swiss VAT representative.

6. What if the project lasts more than 12 months?
It creates a permanent establishment → Swiss taxation, Commercial Register entry, Swiss accounting obligations.

7. Must foreign employees contribute to Swiss AVS?
Not if they hold an A1 form (temporary EU/EFTA posting).
Otherwise, the employer must register them with Swiss social insurance.

8. Is import VAT recoverable?
Yes, if the company is registered for Swiss VAT and holds proper customs documentation.

9. Is a Swiss branch or company required?
Only if the project lasts over 12 months or a fixed office is established.
In that case, RISTER can create and domicile the branch.

10. What is RISTER Fiduciary Geneva’s role?
RISTER acts as Swiss fiscal representative, fiduciary, and local advisor, managing: