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Swiss immigration law outlook 2024

Overview of all changes in the Swiss immigration legislation landscape since 1 January 2024.

Switzerland has decided to extend the protection status S for Ukrainians and published the new list for the job posting requirement.

Please find more details in this context as well as regarding the additional immigration-related updates for 2024.

The new year brought a number of changes to the immigration legislation in Switzerland.

KPMG Law provides you with a comprehensive overview of the new rules and some insights into upcoming EU and Schengen regulations.

Adrian Tüscher

Partner, Head KPMG Law Switzerland, Attorney-at-Law

KPMG Switzerland

Shirin Yasargil

Director, Attorney-at-Law, HR Legal Services

KPMG Switzerland

1) Ukrainian nationals

In 2022, both the EU and Switzerland established protection regimes for Ukrainian refugees. The Swiss Federal Council recently decided to extend the protection status S for Ukrainian nationals until 4 March 2025. There are currently about 66,000 Ukrainians with status S in Switzerland. 

The extension is contingent upon the ongoing risk in the Ukraine. Efforts are underway to double the employment rate of Ukrainian refugees to 40% by the end of 2024, with the Federal Council collaborating with various departments and partners. 

Cantons will face stricter requirements for federal funding utilization, focusing on language support and individual assessments. The goal is to not only reduce social welfare expenses but also integrate refugees into society and preserve their skills. 

In the EU, the temporary protection status for Ukrainian refugees is set to be extended until 2025, pending formal adoption, with all member states obliged to implement the extension into their legislation.

2) Job registration requirement

The list of occupations that are subject to registration is updated on an annual basis by the Federal Council. This list contains every occupation with an unemployment rate exceeding 5%. Swiss employers are required to register open positions of listed jobs with the local unemployment office and are not allowed to publicly advertise the open positions for five working days from the date of registration.

Considering the ongoing decline in unemployment, the job registration requirement for 2024 will encompass fewer occupation types. For example,  certain occupation types, such as cleaning and auxiliary staff in offices, hotels and other establishments employing a total of 80,000 individuals, will no longer be subject to the job registration requirement. Additionally, within the catering industry, job openings for service staff will also no longer be subject to the job registration requirement in 2024. 

The updated list of job openings that are subject to registration can be accessed using this link.

3) Elimination of discrimination in the context of family reunification

Efforts are underway to improve equal treatment in the reunification of foreign family members. As a result of various court rulings, family members of EU/EFTA nationals currently enjoy certain advantages over Swiss nationals’ relatives. By way of the new parliamentary initiative, this disparity should be eliminated and hence seeks to simplify the reunification process and ensure equal treatment of foreign family members of Swiss nationals.  

To this end, a legislative amendment has been formulated.The proposed simplifications relate to the reunification of upward line relatives who receive support and downward line relatives aged 18 to 21 or who receive support. In these cases, it will no longer be necessary for them to possess a permanent residence permit from a state with which an agreement has been concluded.

Additionally, the existing time limit for reunification will be lifted, and the obligation for family members to live together will be replaced with the requirement for suitable housing.

However, the issuance of a residence permit may be subject to the conclusion of an integration agreement, and proof of the financial means required for support will be necessary.

The proposal is currently before Parliament for a decision to be taken. 

4) European Travel Information and Authorization System ETIAS

In October 2018, the European Union (EU) endorsed the Regulation that establishes the European Travel Information and Authorisation System (ETIAS).

Following the implementation of this system, individuals from non-EU/EFTA countries who are exempt from Schengen visa requirements will need to apply for ETIAS authorization online before their visit to the region.

The primary purpose of ETIAS is to enhance security measures and deter illegal immigration by necessitating pre-travel screenings for security and migration risks for visa-exempt nationals.

According to the latest information available, ETIAS is scheduled to be launched in May 2025 at the earliest. 

5) Entry/Exit System EES

The Entry/Exit System (EES) is designed to record the entry and exit of all third-country nationals in and out of the Schengen area, automatically calculating the duration of their stay. It is intended to replace the current manual practice of passport stamping. By doing so, the system contributes identifying irregular migration patterns, particularly by detecting instances where individuals exceed their authorized duration of their stay. 

The system is intended to support the identification of terrorists and other criminals, provide border guards with precise and automated information and inform travellers of the maximum length of their authorized stay.

The system is expected to become operational throughout the Schengen area in the second half of 2024.

6) Quotas 2024

The Swiss Federal Council has announced that the permit quotas for 2024 will remain at same level as in 2023. Quotas will be applicable to the following groups of employees:

  • Non-EU/EFTA nationals 
  • EU/EFTA nationals on assignment
  • UK nationals
  • Croatian nationals

The annual quotas are rarely used up. Unused quotas from 2023 and earlier years are always carried over to the next year. Therefore, the released quotas are expected to be sufficient for the next year. Nevertheless, and particularly for the EU/EFTA and UK quotas which are released on a quarterly basis, it is worth checking the status of the quota and the best time to apply before applying for a particular type of permit. 

Quotas for non-EU/EFTA nationals

There will be 8,500 permits available for non-EU/EFTA nationals coming to work in Switzerland (on assignment or locally hired). They are divided into:

  • 4,500 long-term B permits
  • 4,000 short-term L permits

The new quotas will be released on 1 January 2024. As at October 2023 the utilization rate was 68% for B permits and 65% for L permits. 

Quotas for EU/EFTA nationals on assignment

For assignees from the EU/EFTA region there will be 3,500 permits available for 2024. They will be divided into:

  • 3,000 short-term L permits
  • 500 long-term B permits

The quotas are released on a quarterly basis. As at October 2023 the utilization rate was 36% for B permits and 45% for L permits.

Quotas for UK citizens

On 1 January 2021, the Free Movement Agreement (FZA) between Switzerland and the United Kingdom ceased to apply. Since then, UK nationals have been deemed as third-country nationals and, as a transitional measure, have been subject to separate temporary quotas. It is planned, however, to integrate the UK special quota into the regular quota in the medium term.

For 2024 the Federal Council has released a quota of 3,500 permits, divided into: 

  • 2,100 long-term B permits
  • 1,400 short-term L permits

These quotas will be released on a quarterly basis starting on 1 January 2024. As at October 2023 the utilization rate was 23% for B permits and 18% for L permits. 

Quotas for Croatian citizens

On 22 November 22 2023, the Federal Council decided to continue applying the safeguard clause outlined in the Free Movement Agreement concerning workers from Croatia also next year. The number of permits available will remain the same as in 2023. 

  • 1,204 long-term B permits
  • 1,053 short-term L permits 

As at the end of October 2023, the entire quota of 1204 B permits had been utilized, while 76% of the available 1053 L permits (short-term permits extendable beyond one year) were used. 

7) Admission of non-EU/EFTA citizens with a Swiss university degree

The Federal Council has put forward a message aiming to simplify access to the Swiss job market for non-EU/EFTA citizens who graduate from Swiss universities or Federal Institutes of Technology with master's or doctoral degrees in fields facing a shortage of skilled workers.

Presently, graduates from non-EU/EFTA nations in subjects such as mathematics and computer science might be exempt from quotas if they seek employment in Switzerland within skill-scarce domains. The proposed amendment to the Federal Act on Foreign Nationals and Integration (FNIA) specifically targets graduates from Swiss institutions. It intends to enable them to work and stay in Switzerland, provided their employment aligns with Switzerland's high scientific or economic interests. Although this would waive the typical quotas for non-EU/EFTA job seekers, the essential admission criteria – such as education and employment in crucial Swiss sectors – remain unchanged. The discretion to grant such graduates to be hired will remain with the individual cantons, which could lead to a complex hiring process.

In recent updates, following amendments made by the National Council in March 2023, the Swiss Council of State rejected the proposal outright in its October 2023 session based on constitutional violations. Consequently, the proposal is now back with the National Council's Commission. The current outlook suggests that a final decision on this proposal might take several months. Complicating matters further, Switzerland is currently experiencing a historic surge in immigration from EU countries, intensifying discussions around relaxing immigration rules for non-EU nationals.

8) Post-Brexit

The Services Mobility Agreement (SMA) between the UK and Switzerland, initially scheduled to conclude at the close of 2022, has been extended and will now remain in effect until 31 December 2025. This bilateral agreement, operational since 1 January 2021, continues to be instrumental in streamlining market access and temporary stays for UK service providers in Switzerland, serving as a mitigating measure against the immediate repercussions of Brexit.

The SMA enables service providers in the UK to continue sending employees to Switzerland for up to 90 days annually using the online registration procedure. Eligible individuals include UK nationals employed in the UK and non-UK nationals employed in the UK who are permanently admitted to the UK labor market.

In practice, this means that UK-based entities will still be able to use the online registration process for short-term work in Switzerland (up to 90 days per calendar year). We can see that the online registration tool is highly popular with UK-based entities. Switzerland has a need for UK serivce providers to come to Switzerland, particularly in certain areas such as banking/finance or management. 

Employers looking to locally hire UK nationals (not yet resident in Switzerland) based on a local Swiss employment contract will continue to have to respect the so called priority of Swiss and EU/EFTA nationals, meaning that – for the majority of situations and as a prerequsitie for an application for a Swiss work permit for a UK national – they will have to prove unsuccessful recruitment efforts in Switzerland and in the EU/EFTA.

The quotas for such permits have been sufficient in previous years and are expected to be sufficient in the coming year, at least based on previous years’ statistics. 

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Past outlooks

As of 1 January 2023, several amendments regarding Swiss immigration law will come into effect. KPMG Law provides you with an overview of the latest decisions taken by the Swiss Federal Council.

1) Quotas 2023

The quotas for 2023 remain at same level as in 2022. Quotas will be applicable for the following groups of employees:

  • Non-EU citizens both on assignment and local hires (incl. UK and Croatian citizens)
  • EU/EFTA citizens on assignment

1.1) Quotas for non-EU/EFTA citizens

Swiss employers may continue to hire highly qualified employees with other than Swiss or EU/EFTA citizenship, provided the applicable strict legal requirements are met (among other criteria: Priority of Swiss/EU citizens, available quota etc.).

The Federal Council has decided to leave the quota for 2023 unchanged. i.e. for 2023, 8,500 permits are available, divided into:

  • 4,500 long-term permits (type B)
  • 4,000 short-term permits (type L)

The new quotas will be released on 1 January 2023.

1.2) Quotas for UK citizens

The Agreement on the Free Movement of Persons (AFMP) between Switzerland and the UK is no longer applicable as a consequence of Brexit. Consequently, UK citizens are basically treated equally to non-EU/EFTA citizens and their admission to the Swiss labor market as assignees (for more than 90 days in a calendar year) or local hires is therefore subject to quotas. 

The Federal Council has released a quota of 3,500 permits, divided into: 

  • 2,100 long-term permits (type B)
  • 1,400 short-term permits (type L)

These quotas will be released on a quarterly basis starting 1 January 2023.

1.3) Quotas for Croatian citizens

As per 1 January 2023, access of Croatian workers to the Swiss labor market will again be restricted as the number of workers from Croatia has exceeded the thresholds set out in the Agreement on the Free Movement of Persons (AFMP). The Federal Council therefore decided to apply the safeguard clause provided for in the AFMP. In total 2,157 permits will be available for Croatian citizens in 2023 (provisional numbers – final figures to be confirmed at the end of the first quarter of 2023:

  • 1,150 long-term permits (type B)
  • 1,007 short-term permits (type L)

Whether the restriction will apply beyond 2023 (max. 5 years) is subject to the Swiss Federal Council’s decision. It is expected that such a decision will be taken in late 2023.

1.4) Quotas for assignees from EU/EFTA countries

Furthermore, the quotas for assignees from the EU/EFTA region remain unchanged. Hence, overall 3,500 permits will be available, divided into:

  • 3,000 for short-term permits (type L)
  • 500 long-term permits (type B)

These quotas will also be released on a quarterly basis. Due to the pandemic, the quotes were not fully utilized in 2020 and 2021. At the end of October 2022, the third-country quotas were exhausted by 75% (B) and 68% (L).

2) Safeguard clause to apply for Croatian citizens

As of 1 January 2023, the safeguard clause will come into effect in order to limit the number of Croatian citizens coming to Switzerland for work since the pre-agreed threshold has been exceeded. Croatian labor was in high demand especially in manufacturing and construction. Further, demand was particularly strong in the hospitality, trade and employment services. An increase in Croatian labor was also recorded in sectors with higher skill requirements, such as planning, consulting and IT services.

As a result, the thresholds set out in the AFMP has been exceeded. The Federal Council has therefore decided to apply the safeguard clause for all Croatian citizens coming to Switzerland. 

In accordance with the legal provisions, Switzerland will reintroduce quotas for B- and L-permits as of 1 January 2023 (see above). Hence, a Croatian citizen may (i) either apply for the Swiss work and residence permit based on a local employment contract after having entered Switzerland by registering with the local population office or (ii) file an application including all relevant documents (i.e. copy of valid passport or ID, copy of Swiss employment contract) with the cantonal migration office which is competent for the future Swiss residence prior to entering Switzerland. In the latter case, the authority will – provided a quota is available – issue a decree (in German: “Zusicherung der Aufenthaltsbewilligung”) based on which the individual may register with the local population office within 14 days after having entered Switzerland, but in any case before taking up work in Switzerland. The second option (i.e. filing an application before entering Switzerland) will ensure the individual as well as the future employer that a quota will be available and that a Swiss work and residence permit may be issued accordingly. Whether the restriction will apply beyond 2023 (max. 5 years) is subject to the Swiss Federal Council’s decision. It is expected that this decision will be taken in late 2023.

3) Job registration requirement

Every year, the Federal Council updates the list of occupations that are subject to registration. This list contains every occupation in Switzerland with an unemployment rate exceeding 5%. Swiss employers are obliged to register open positions of listed jobs at the local unemployment office. In addition, they are not allowed to publicly advertise open positions within five working days after their registration. The regulation aims at making jobs in areas with higher unemployment rate available exclusively to Swiss citizens before offering them to EU/EFTA and other citizens. The job registration requirement provides priority for Swiss citizens over EU/EFTA citizens for a limited period. 

The updated list of job openings which are subject to registration from 1 January 2023 can be accessed via this link. 

The list of occupation types that are subject to the job registration requirement was extended in 2021 and 2022 due to the pandemic and the consequential rise of unemployment. For 2023, however, the number of occupations has been reduced. 

4) Admission of non-EU/EFTA citizens holding a Swiss university degree

The Federal Council has released a message that non-EU/EFTA citizens graduating from a Swiss university or a Federal Institute of Technology with a master or a doctoral degree in an area with a shortage of skilled workforce should have simplified access to the Swiss labor marked. 

Already today, graduates from non-EU/EFTA countries with degrees e.g. in mathematics and computer science may be exempt from quotas in case they pursue gainful work in Switzerland in areas with a shortage of skilled workers. The Federal Council has proposed to amend the Federal Act on Foreign Nationals and Integration (FNIA) regarding such graduates from Swiss universities. In the future, they will be able to stay and work in Switzerland if they are employed in areas with high scientific or economic interest for Switzerland. For such employments, the quotas, which are normally applicable for non-EU/EFTA job seekers, will be lifted. Nevertheless, the other admission requirements (e.g. education and employment in areas with high scientific and/or economic interest for Switzerland) will remain the same. In practice, hiring non-EU/EFTA citizens with a Swiss university degree will be in the discretion of the different cantons and can hence still be a complex process.

It is estimated that around 200 to 300 graduates per year will benefit from this amended FNIA. In general, this group of people is well integrated in Switzerland. 

The planned amendment in the FNIA is expected to enter into force once and if it passes public hearing and the decision by the parliament. 

5) Switzerland extends protection status S for Ukrainian Refugees until Spring 2024

In March 2022 the Federal Council activated the protection scheme (status S) for “people in need of protection” due to the outbreak of the Ukrainian war. The protection status, which was limited to one year, has now been extended by the Federal Council until 4 March 2024. A condition for the lifting of status S is lasting stability in Ukraine, which, according to the Federal Council, is presently not the case.

Therefore, Ukrainian citizens and non-Ukrainian citizens with valid residence permits in Ukraine who have fled the war can still apply for the protection status (S-permit) in Switzerland. The S-permit can be applied at any open border crossing or at one of the six federal asylum centers. The entry visa exemptions for Ukrainian citizens still applies.

The federal as well as the cantonal authorities have agreed to extended support measures and according to the immigration authorities in Switzerland, the resident’s offices of the respective municipality will be responsible for processing the extension of S-permits. 

At this point in time, the registration offices cannot confirm the details of the process of permit extension. It is expected that the process will involve S-permit holders to appear at the local Swiss authorities in charge, in person, and to complete an extension form. As the authorities expect a large demand for permit extensions in the coming few months, an expected processing time is difficult to communicate but the process is estimated to take approx. 3-5 weeks, at least. However, the right to remain (working) will still be valid once the application has been submitted with the authorities, even if the current permit has expired and the new has not yet been issued.

6) Switzerland and the UK extend the Services Mobility Agreement (SMA) until end of 2025

The SMA between the UK and Switzerland, which was due to run out at the end of 2022, has been extended until 31 December 2025. The bilateral agreement applied since January 2021 facilitates access for services providers despite the UK’s withdrawal from the European Union and services to alleviate the immediate effects of Brexit on companies and working professionals. 

As a result of the extension of the SMA, service providers located in the UK may still send their employees or themselves to Switzerland to provide services for up to 90 days in a calendar year using the online notification procedure. The following employees can be registered: 

  • UK-citizens employed in the UK (incl. self-employment); and
  • Non-UK citizens employed in the UK, if integrated long-term in the regular labor market in the UK (either for at least twelve months with a temporary residence permit or with a settlement permit).

Self-employed service providers who are EU/EFTA citizens resident in the UK can continue to provide services if the following two conditions are met: the service provision has started no later than 31 December 2020 and a written contract has been concluded before that date. 

The SMA only applies to cross-border services provisions of up to 90 days per calendar year and per employer. Any local hires are governed by the FNIA.

7) Language requirements for EU citizens of countries with a settlement treaty in place

EU citizens of countries with which Switzerland has concluded a settlement treaty are generally entitled to a C-permit after an ordinary and uninterrupted stay of five years, if the integration criteria are met and no grounds for revocation exist. Citizens of these countries (below) were previously exempt from the general language requirements in connection with a C-permit application.

Switzerland has particularly concluded settlement treaties with the following EU-countries:

  • Belgium
  • Germany
  • Denmark
  • France
  • Liechtenstein
  • Greece
  • Italy
  • The Netherlands
  • Austria
  • Portugal
  • Spain

On 1 October 2022, the State Secretariat for Migration (SEM) has issued a directive amendment to the FNIA. According to the amendment, foreigners applying for a C-permit must prove that they possess the required language skills (at least: oral A2, written A1). The cantons are yet to transpose this directive into their practice, but it’s expected that the first cantons will start as of 1 January 2023. Hence, EU citizens of these countries will soon need to meet the required language requirements to obtain a C-permit as a new prerequisite.

The KPMG immigration team will make sure to share any future immigration-related changes on the different media channels (Flash Alerts, Social Media, Client Mailing). In case you have a general query or even a specific case, do not hesitate to contact your immigration experts at KPMG.

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