Can I become self-employed in Switzerland?
Yes — with recognition of the status and your own social contributions. Self-employed activity is recognised case-by-case by the AHV compensation office based on the economic facts (own name and account, own risk, own investments, several clients) — the contract alone doesn't decide. You pay the AHV/IV/EO contributions (about 10%) entirely yourself; there's no ALV (no unemployment cover) and no mandatory accident/pension-fund insurance. Entry in the commercial register is mandatory from an annual turnover of CHF 100,000 (sole proprietorship). You become VAT-liable from CHF 100,000 taxable turnover (register with the ESTV). In short: yes, with AHV recognition and your own contributions.
📋 The rules
- Get status recognised by the AHV compensation office
- Your own AHV/IV/EO contributions ~10%
- No ALV, no mandatory accident/pension insurance
- Commercial register from CHF 100,000 turnover
- VAT from CHF 100,000 turnover (ESTV)
🔓 Exceptions
- Contribution rate falls at low income (to 5.371%), minimum CHF 530/year
- Reduced VAT threshold (CHF 150,000) for some non-profit/culture/sport
- Status judged on economic facts, not the contract
⚠️ Penalties & fines
Claiming a bogus self-employment that the compensation office doesn't recognise means you count as an employee, with consequences for contributions and insurance. Ignoring the VAT obligation or the commercial-register duty risks back-claims and fines. Beware a myth: "as a self-employed person I'm automatically covered for unemployment" is false — there's no ALV for the self-employed. Tip: get your status recognised by the compensation office early, plan for the missing unemployment and pension cover, and clarify the VAT obligation.
📎 Official sources
❓ Frequently asked
How is my self-employed status recognised?
The AHV compensation office decides case-by-case whether you're self-employed, based on the economic facts: whether you act in your own name and on your own account, bear your own risk, make your own investments and work for several clients. The contract alone isn't decisive here.
What contributions must I pay?
As a self-employed person you pay the AHV, IV and EO contributions of about ten percent in total entirely yourself. At low income the rate falls, with a minimum contribution per year. There's no unemployment insurance and no mandatory accident or pension-fund insurance for you.
Do I have to enter the commercial register?
A sole proprietorship must enter the commercial register from an annual turnover of CHF 100,000. Below that, entry is voluntary. The entry creates clarity about the firm and owner and is a precondition for certain business steps and for inclusion in particular registers.
From when am I VAT-liable?
You become VAT-liable from a taxable annual turnover of CHF 100,000 and must then register with the Federal Tax Administration. For certain non-profit, cultural or sports organisations a higher threshold of CHF 150,000 of taxable turnover applies before registration is required.
Am I covered for unemployment as self-employed?
No. The self-employed aren't covered by unemployment insurance and get no unemployment benefit if the activity falls away. Plan for this gap, for example with reserves, and consider voluntary provision, as there's also no mandatory pension fund for the self-employed.
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