Part-Time Self-Employment in Switzerland: The Essential Aspects

The idea of part-time self-employment has gained significant traction in recent years, especially in progressive countries like Switzerland where a flexible and dynamic workforce is valued, and workers are encouraged to explore their entrepreneurial passions. In this article, we delve into the fundamental aspects of part-time self-employment in Switzerland, exploring what it entails, who can become self-employed part-time, its advantages and disadvantages, important legal considerations, and common questions you might have about this interesting mode of work.

There are no restrictions on who can take up part-time self-employment. Individuals from various backgrounds, including professionals, students, and homemakers, can explore self-employment opportunities while managing their other primary responsibilities. Cross-border commuters and foreigners may also take up profit-making self-employment activities in Switzerland subject to certain requirements being met (more on this later).

Small and medium-sized enterprises (SMEs) make up over 99% of commercial companies in Switzerland and create two-thirds of the jobs in the country, according to the Federal Statistical Office. This thriving ecosystem makes Switzerland particularly welcoming for new entrepreneurs.

That said, there are important factors to consider before embarking on part-time self-employment:

Firstly, it is recommended to have a stable source of income from elsewhere, be it a secure full-time job, or another guaranteed source of funds. This is especially important at the beginning of taking up part-time self-employment where a stable income source will make it easier to explore your entrepreneurial activities without unnecessary pressure. Generally, part-time self-employment activities are meant to function as a supplementary income stream and shouldn’t be relied on for covering your primary living costs.

Another consideration is your personal capacity to take on additional work. Part-time self-employment may be rewarding, but it also comes as an added time strain. You should be ready and able to take on this added burden on top of your main job, without damaging your performance or quality of life.

The main legal considerations include adhering to your duty of loyalty to your primary employer, registering with the compensation fund, paying social security contributions (AHV/IV/EO), and declaring all self-employment income on your tax return. Understanding these requirements is essential to ensure compliance and avoid legal issues.

Duty of loyalty to your primary employer

If you have a full-time job and decide to take up part-time self-employment alongside it, you must adhere to the duty of loyalty to your primary employer. Basically, this means avoiding conflicts of interest and ensuring that your self-employment activities do not interfere with your obligations to your employer.

The duty of loyalty is a legal obligation that is outlined in Art. 321a of the Swiss Code of Obligations (OR). The duty of loyalty is seen to be violated if the part-time work in question:

• Directly competes with the primary employer (e.g., serving company clients on a private basis),
• Negatively impacts the company’s reputation,
• Impairs the employer’s performance to the extent that they are unable to properly fulfil their obligations to the company.

Social security contributions

As with full-time employees, self-employed individuals must generally also contribute to the 1st pillar old-age and survivors’ insurance (AHV/IV/EO). The 1st pillar is important for any working professional as it allows you to cover your living needs in old age or compensate your family in the event of death.

Self-employed individuals pay AHV/IV/EO on their net self-employment income at a degressive rate (approx. 5.371%–10.0%). At higher incomes (around CHF 60,500 and above), the maximum rate is 10.0%. Employees pay 5.3% while their employer pays another 5.3%, totaling 10.6% (AHV/IV/EO), as of 2025.

Here are some important details regarding social security contributions if you are self-employed part-time:

• If you are in full-time employment and your income is insured with the AHV, you must still register your self-employed secondary occupation with the compensation office, unless your annual income does not exceed CHF 2,500 (as of 2025), in which case contributions to the AHV will only be levied at your request.
• If you are self-employed as a secondary occupation and belong to a professional association, you must generally join the professional association and pay into its funds in addition to the compulsory social insurance.
• Daily sickness benefits insurance is not compulsory
• If you employ staff as part of your self-employment, you must also register them with the social insurance schemes (AHV, IV, family allowances, etc.).

Tax considerations

Income generated from part-time self-employment must be declared on your tax return and is subject to income tax in the same way that the salary from your main employment is. Self-employed individuals are required to file their taxes independently, therefore keeping accurate records of income and expenses is essential for tax purposes.

If you use a sole proprietorship to conduct your part-time business, the income from these activities is taxed normally along with your regular income. However, if you operate a GmbH or AG, you need to keep in mind the potential for double taxation, in that the profits are taxed at the corporate level and then again as personal income tax when they are withdrawn in the form of dividends and/or salary.

Understanding the tax implications of self-employment is vital to avoid legal issues in the future and optimise your personal tax liability.

Registrations requirements

You are required to register with the compensation fund to become legally recognised as a self-employed person in Switzerland. To do so, you must fill out the registration form available on the compensation fund’s website. You will also need to attach the required documents such as copies of invoices that you have already issued, business agreements, company address and rental agreement, insurance policies, etc.

Furthermore, if you decide to incorporate a legal business entity through which to conduct your self-employment, such as a GmbH or AG, you will be required to formally register the company into the corporate register and fulfill all other obligatory registration requirements for incorporating a new company in Switzerland.