Professionals in Switzerland for Italian Companies Regulatory Overview and Social Security Implications for Italian Businesses Hiring Highly Qualified Workers Residing in Switzerland
by Sara Botti
With the increasing prevalence of flexible working models and the expansion of cross-border remote work, the employment landscape in Switzerland has undergone profound changes.
An increasing number of workers now perform their professional activities on Swiss territory while remaining formally employed by employers based abroad.
Although this scenario appears relatively straightforward from a regulatory standpoint, it raises complex issues under social security law.
One of the most prominent categories affected by this evolution is that of ANobAGs (from the German Arbeitnehmende ohne beitragspflichtigen Arbeitgeber – employees without a social security-contributing employer in Switzerland).
This status presents challenges for the system, particularly in relation to insurance coverage and contribution obligations, with a specific focus on the area of occupational pensions – the so-called Second Pillar.
It is important to emphasise that employment relationships, even when conducted remotely, retain their essential characteristics.
Where an individual performs services exclusively for a single entity, even if located abroad, there exists a strong presumption of subordination.
In such cases, classification as a self-employed person is generally unsustainable during administrative audits.
This has significant consequences:
The foreign employer may, without realising it, become subject to retrospective social security contribution obligations (AHV contributions) and to the mandatory enrolment of the employee with a Swiss pension institution.
Such obligations may come to light during inspections by Swiss compensation offices or tax authorities.
The Swiss legal framework is clear: pursuant to Article 1 of the Federal Act on Old Age and Survivors’ Insurance (AHVG), all persons residing in Switzerland or engaging in gainful employment there are subject to mandatory insurance, even in the absence of an employer established in Switzerland.
This mandatory insurance obligation is further reinforced by international agreements, notably the coordination treaties with the European Union (EU) and the European Free Trade Association (EFTA), which mandate the application of Swiss social security legislation to all individuals living and working in Switzerland, regardless of the nationality or location of the employer.
There are two distinct subcategories of employees residing in Switzerland and employed by a foreign entity:
- Formal ANobAGs: employees engaged by companies based in an EU or EFTA member state, where the foreign employer is nevertheless required to contribute to the Swiss social security system pursuant to bilateral agreements.
- Substantial ANobAGs: employees of non-European companies (i.e., based outside the EU/EFTA), where no international coordination mechanisms apply and where the obligation to pay contributions rests directly with the employee.
This distinction is fundamental, as it directly affects the possibility of inclusion within the mandatory occupational pension system (Second Pillar).
Only employees who are formally classified as ANobAGs are required to make contributions to the occupational pension scheme.
Employees falling under the category of substantial ANobAGs may only join occupational pension schemes on a voluntary basis, subject to the limitations applicable to self-employed individuals.
Nevertheless, this should not dissuade Italian employers from recruiting highly qualified personnel residing in Switzerland, without the need to organise and formalise costly expatriation assignments.
For the correct management of contractual, social security, insurance, and tax aspects related to the hiring of employees abroad, it is essential to engage specialists with proven expertise in transnational contexts.
Our offices in Zurich and Milan are at your disposal to provide assistance in this regard.