Entry, residence and the right to work in Switzerland are all interlinked. Pressure from the EU is gradually bringing freedom of movement rules into place. It's hoped that this will in future allow citizens of the EU to bypass the quota permit system. Currently EU citizens not in Switzerland have the following rights:

 Until 31 May 2007, there is a fixed quota for work permits that limits in-migration to a maximum of 15,000 for long-term residence and 115,500 short-term residence per year. After this time, quotas will be suspended for EU citizens wishing to work and/or live in Switzerland. By June 2009, Switzerland has promised to make a decision on whether or not to extend the agreement. A positive response will result in freedom of movement being fully introduced between Switzerland and the EU, beginning June 2014.

Obtaining Residence in Switzerland

This is a complex process with 6 different types of permit to apply for. The following are available:

• 120-day permit
• Class A permit
• Class B permit
• Class C permit
• Fiscal deal permit
• Political refugee permit

The class A permit is for blue collar workers. All permits other than the 120-day option are part of the quota system under the current system. See above for plans to extend the freedom-of-movement into place.

'120-Day' permit: A specialist worker may spend up to 120 days in a year to work in a specified position.

Class B permit: This allows an individual to live and work in Switzerland and is the most commonly issued. For professional and managerial workers or self employed individuals wishing to start their own company in Switzerland, this is the choice of permit. It also applies for those wanting to reside in Switzerland but with enough wealth to live off their own resources. The permit usually will have the following characteristics:

Class C permit: This is for a longer term residency and grants the holder essentially the same rights as a Swiss citizen. It also permits the purchase of real estate property within the country. In order to obtain this class C permit, the applicant must have held a class B permit for 5 to 10 years. This time period is usually affected by the country of origin for the applicant. This is the final step before an individual can apply to become a Swiss citizen. The same conditions as the class B permit apply here .

Fiscal Deal permit: Wealthy individuals may wish to live in Switzerland and spend income earned outside Switzerland but have no desire (or need) to work in the country, for instance international tennis players. The permit is a variant of the class B permit. The conditions for obtaining a fiscal deal permit require the applicant to have a certified net wealth of over CHF 2,000,000. He must also be able to spend at minimum 180 days per year in the country. A successful applicant pays significantly lower tax than a Swiss national in the same income bracket. This is due to the assessment to tax being based not on the applicants real income but instead a significantly lower notional amount. The applicant may negotiate with the canton in which he resides to agree a personal amount of tax payable. OECD standards indicate Switzerland is already a very low tax country and with the fiscal deal, holders are subject to extremely low levels of taxation. Typically it takes up to 3 months for this permit to be processed and approved (or rejected).