A relocation package is the bundle of financial support and services an employer offers to move an employee from one country to another. It is written into the employment contract, an assignment letter or a company policy. For Switzerland, it is the answer to one question: who pays for, and who organises, each step between the employee's departure and the first weeks on site?
This page explains what a package contains, how to decide who qualifies, and where tax questions arise. It is written for the HR or mobility manager who has to draft or review the policy.
What a relocation package is, in plain terms
The package is a policy decision, not a legal entitlement. Swiss law does not oblige an employer to offer one. The contract, the group mobility policy or a collective agreement sets what the transferee receives.
Three features define it:
- It is tied to the move. Benefits exist because the employee changes country, not because of the role itself.
- It is time-limited. Most items cover the move and the settling-in period, then stop.
- It is the employer's choice of design. The same destination can have a minimal package or a very full one.
If you are comparing Switzerland with other destinations, start with what a relocation package to Switzerland should include. For the cost side, see how much a relocation package is worth.
The main components
Most packages are built from the same blocks. Your policy selects which blocks apply, and to whom.
Immigration and permits
Your employee must hold the right residence and work authorisation before starting work. Switzerland has two regimes: nationals of the EU or EFTA (under the free movement agreement) and nationals of third states (outside the EU and EFTA). The State Secretariat for Migration (SEM) describes both. The detailed conditions for third-state nationals vary and depend on the profile, so the employer should confirm them with the authority.
A package usually states who files the application, who pays the fees and what happens if the permit is refused. See immigration support and the permit finder.
Transport of household goods and travel
This covers the removal of belongings, temporary storage, flights, and sometimes a pre-assignment visit. Customs and import formalities depend on the origin country and on the goods. Your policy should say which items are covered and whether there is a cap.
Housing
Housing support ranges from a home search service to temporary accommodation on arrival. A transferee who has never lived in Switzerland rarely knows the local rental process. A home search service is the usual response. Some policies add a rent contribution for a defined period.
Settling-in
Arrival formalities are a package component in their own right. The employee must register with the local commune (the Gemeinde, or municipal registration office). The commune expects the registration within 14 days of arrival, though the exact rule can vary by commune or canton. On site, the employee typically presents an identity document, the residence or work permit and proof of health insurance.
A settling-in service handles these steps. The first three months checklist lists them in order.
Health insurance and other cover
Anyone domiciled in Switzerland must take out basic health insurance (LAMal in French, KVG in German) no later than three months after taking up residence. If the deadline is met, cover is backdated to the date of residence. If it is missed, cover starts at affiliation, a premium surcharge can apply and the canton can assign an insurer. Your policy should say who ensures this is done on time and whether the employer contributes to premiums.
Family and education
Spouse or partner support, language lessons, and school or childcare search are common add-ons. International schooling is a frequent point of negotiation for families.
Tax and payroll support
Tax advice for the employee, the handling of withholding tax and the treatment of social security are normally separate lines in the policy. They are covered below.
Eligibility: who gets what
Eligibility is a design choice. Most employers set it in tiers.
| Trigger | Typical policy question |
|---|---|
| New hire from abroad | Full package, partial package or lump sum? |
| Intra-group transfer | Does the assignment policy apply instead? |
| Short assignment | Is it a commuter or business-travel arrangement rather than a move? |
| Permanent relocation | Does the package include repatriation cover? |
| Senior or specialist roles | Is there a higher tier with extra services? |
Four questions help you draw the line:
- Is the move permanent or an assignment with a return date?
- Does the employee bring family?
- Is the role hard to fill, so that the package is a hiring tool?
- Does the employee's nationality change the immigration work?
Write the answers down. A policy that is not written down produces inconsistent offers and, later, disputes about fairness.
Lump sum or managed service
This is the central design choice. A lump sum gives the employee a fixed allowance to organise the move. A managed service has the employer arrange and pay for services directly.
A lump sum is simple to budget. It does, however, leave a transferee alone with unfamiliar rules on permits, housing and insurance. A managed service costs more to administer but reduces errors. Many employers combine the two: managed immigration and settling-in, with a lump sum for the physical move. The decision frame goes through the trade-offs, and lump-sum relocation and writing a lump-sum policy cover the detail.
Tax treatment: the questions to settle
Tax treatment depends on the item, the employee's situation and the canton. This page does not give tax advice. It lists the questions your tax adviser should answer before the policy is issued.
- Is each benefit taxable income for the employee? Cash allowances are generally treated differently from services paid directly to a provider. Confirm item by item.
- Is there a gross-up? Some employers cover the tax on benefits so the employee is not worse off. Others do not. State your position.
- How does withholding tax apply? Foreign employees without a settled permit are often taxed at source. See withholding tax at source and payroll and social security for assignees.
- Does the employee file a return later? That depends on status and income. See tax returns in Switzerland.
- Where does the employee become resident for tax? The canton matters, as rules differ across Switzerland.
A specialist examines the individual case. The request at the foot of the page starts that process.
Common mistakes in package design
- Treating the package as a cost line without defining who owns each task.
- Forgetting that the employee must have a work permit before starting, which affects the start date.
- Leaving health insurance to the employee and missing the deadline.
- Using one tier for every assignee, whatever the family situation.
- Not stating what happens if the employee leaves early.
- Ignoring the arrival formalities that sit between the move and the first payslip.
Checklist for HR
- Decide whether the move is a hire, a transfer or an assignment
- Define tiers and eligibility in writing
- Choose lump sum, managed service or a mix
- Assign owners for permits, housing and registration
- Set the health insurance responsibility and deadline
- Ask your tax adviser to review each benefit
- Define the early-leaver terms
- Brief the transferee before departure
For a wider view, see employee relocation to Switzerland, designing a relocation policy and the overview of relocation services. Examples are on the package examples page.
Frequently asked questions
What is a relocation package?
It is the set of financial support and services an employer provides when an employee moves country for work. It covers items such as immigration, removals, housing and settling-in.
Is a relocation package mandatory in Switzerland?
No. Swiss law does not require it. The contract or the company policy decides what the employee receives.
Who usually receives one?
New hires from abroad, intra-group transfers and assignees. Many employers set tiers by seniority, family situation or how hard the role is to fill.
What does a package normally include?
Typically immigration support, transport of goods, travel, housing help, settling-in and sometimes family and tax support. Your policy chooses the blocks.
What is the difference between a package and an assignment policy?
An assignment policy covers a temporary posting with a return date and often includes allowances. A package is broader and also fits permanent hires.
What is a lump-sum relocation?
The employee receives a fixed allowance and organises the move alone. The employer does not pay providers directly.
What is a managed relocation?
The employer or a provider arranges and pays for each service. The employee has less to organise.
Which is better for a Switzerland move?
It depends on the transferee's experience and the policy budget. A managed service reduces risk for people who have never lived in Switzerland.
Who applies for the work permit?
Usually the employer, with the employee supplying documents. Your policy should say who files and who pays.
Do EU and third-state nationals get different support?
The immigration route differs. EU and EFTA nationals use the free movement route, while third-state nationals follow separate admission rules. The package can reflect that.
Must the employee have a permit before starting work?
Yes, the right authorisation must be in place first. Plan the start date around the permit process.
What must the employee do on arrival?
Register with the commune. The expected deadline is 14 days after arrival, though it can vary by commune or canton. The employee brings identification, the permit and proof of health insurance.
Who is responsible for health insurance?
The individual is legally obliged to be insured. The policy can make the employer responsible for helping with the choice and paying part of the cost.
What is the deadline for basic health insurance?
No later than three months after taking up residence. Within that period, cover is backdated to the date of residence.
What happens if the deadline is missed?
Cover starts at affiliation, a premium surcharge can apply and the canton can assign an insurer.
Are relocation benefits taxable?
Often yes, but it depends on the item and the canton. A tax adviser should review each benefit.
What is a gross-up?
The employer pays an extra amount to cover tax on a benefit. It keeps the employee whole. It is a policy choice.
Does withholding tax apply to a foreign employee?
It often does, depending on permit and status. See the page on withholding tax at source.
Can an employer ask the employee to repay the package?
Many policies include an early-leaver clause. The wording should be in the contract and checked by a legal specialist.
Should family members be covered?
Many policies do cover them, since family circumstances affect housing, schooling and permits. Decide this by tier.
Can the package cover schooling?
Some do, usually as a defined contribution or a school search service. The terms should be explicit.
How long should support last?
Most packages cover the move and the first months on site. The policy should state an end point.
How do I start designing a policy?
Define the move types, write the tiers, choose the delivery model and ask tax and legal advisers to review it.
How can the Swiss Relocation Agency help?
It connects you with relocation companies in Switzerland. Depending on your request, it puts you in touch with the one that fits the need.
Sources
Related pages
- Employee relocation to Switzerland
- Designing a relocation policy for Swiss assignme
- What a relocation package to Switzerland should
- How much is a relocation package worth? Benchmar
- Relocation package examples
- Lump-sum relocation
- Lump sum or managed relocation? A decision frame
- Writing a lump-sum relocation policy