Top Swiss Laws Affecting Non-Citizens the Most Significantly
In Switzerland, the rights and obligations of foreigners living and working in the country are governed by a series of key federal laws. These laws provide a framework for immigration, work rights, integration, citizenship, tax transparency, and property ownership.
The Agreement on the Free Movement of Persons (AFMP), effective since 2002, primarily concerns citizens of the European Union and some EFTA countries (Norway, Iceland, Liechtenstein). This agreement grants these foreigners the right to live and work in Switzerland without restrictions, similar to Swiss citizens. It also covers mutual recognition of professional qualifications, rights to purchase property, and coordination of social security systems.
Another crucial piece of legislation is the Foreign Nationals and Integration Act (FNIA). This Swiss federal legislation, which came into effect in its present form in 2008, regulates immigration, residence, and integration requirements for foreigners. It outlines the conditions for visas and permits and the rights and duties of foreign nationals living and working in Switzerland.
The FNIA also defines the family reunification rules and is arguably the most far-reaching legislation of all, as it sets all the rules for work and residence permits.
For foreigners seeking citizenship, the Federal Act on Swiss Citizenship, which entered into force in 2018, sets requirements for naturalisation, including ways of transmitting Swiss citizenship and criteria for, and the process of, naturalisation.
When it comes to property ownership, Lex Koller (Federal Act on Acquisition of Real Estate by Persons Abroad) restricts foreigners' rights to purchase real estate in Switzerland. This law aims to control foreign investment in Swiss real estate, limiting acquisition rights to protect the local market, with certain exceptions under agreements like the AFMP.
Lastly, the Federal Act on the International Automatic Exchange of Information in Tax Matters, enacted in 2018, aims to reduce global tax evasion by facilitating the flow of information between Switzerland and foreign authorities. This act establishes Switzerland's obligations and processes for exchanging tax-related financial information internationally, affecting foreigners who work or have financial dealings in Switzerland.
These laws collectively regulate the lives of foreigners in Switzerland, ensuring a balanced approach to immigration, work rights, integration, citizenship, tax transparency, and property ownership. While this article provides an overview, for exact provisions, consulting official Swiss government sources or legal texts is recommended.
A foreigner interested in investing in Swiss real-estate should be aware of Lex Koller, a federal law that restricts foreigners' rights to purchase property, aiming to control foreign investment and protect the local market, while certain exceptions apply for citizens of the European Union and some EFTA countries under the Agreement on the Free Movement of Persons.
In accordance with the Federal Act on the International Automatic Exchange of Information in Tax Matters, foreigners who work or have financial dealings in Switzerland are subject to information exchange for tax transparency purposes, intending to reduce global tax evasion.
