Starting a side business in Switzerland: employer, AHV, VAT, unemployment

This page explains the general rules that apply in Switzerland and points to the official sources. It is not legal, tax or social insurance advice. Check your case with the body named in each section.

The essentials in one table

Am I allowed to have a sideline next to my job?

Swiss law does not forbid having an activity alongside your job. It sets one limit: the employee’s duty of loyalty. According to the State Secretariat for Economic Affairs (SECO), a sideline is unlawful if it breaches that duty, laid down in Article 321a paragraph 3 of the Swiss Code of Obligations. SECO mentions three cases:

• you compete with your employer through paid work;
• the reputation of the company suffers;
• the activity is so extensive that it reduces your capacity to work to the point of jeopardising your job.

The Confederation’s SME Portal adds that the rules on maximum working hours and minimum rest apply to the hours worked for different employers added together.

Do I have to ask my employer for permission?

Start by rereading your employment contract, the staff regulations and, if there is one, the collective agreement. These documents may require you to declare a sideline or to ask for authorisation. If so, follow the procedure, in writing.

Even without a clause, talk to your employer as soon as there is any doubt: same sector, same clients, use of your working time or work equipment. Written agreement, even by simple e-mail, protects you.

Am I self-employed in the eyes of the AHV?

You do not decide that alone. According to leaflet 2.02 of the AHV/IV Information Centre, people are considered self-employed if they act in their own name and on their own account, are free to organise their work and bear the economic risk of their activity. It is the compensation offices that determine, case by case, whether an activity is self-employed for AHV purposes.

How much does AHV cost on sideline self-employed income?

The figures below come from leaflet 2.02 on the contributions of self-employed persons to the AHV, IV and EO (old-age, invalidity and income compensation insurance), as of January 1, 2026.

• Minor sideline income. If you carry out the self-employed activity as a sideline and the annual income does not exceed CHF 2’500, contributions are only collected at your request.
• Standard rate. AHV 8.1%, IV 1.4%, EO 0.5%, i.e. 10.0% of income.
• Sliding scale. Below CHF 60’500 in annual income, the rate goes down in steps, from 9.321% to 5.371%.
• Minimum contribution. For an annual income below CHF 10’100, the minimum contribution is CHF 530. If you can prove that this minimum contribution has already been collected on your salary in the same year, you can ask for your self-employed contributions to be calculated at the lowest rate on the scale (5.371%), provided that this income stays below the minimum threshold of the sliding scale.
• Administrative costs. The office also charges a contribution of at most 5% of the contributions due.
• Basis of calculation. Final contributions are set on the basis of your tax assessment.

These amounts change regularly. Always check the current edition of the leaflet, and ask your compensation office for the calculation in your case. For tax on this income, ask the tax administration of your canton.

How do you register as self-employed with the compensation office?

1. Contact the competent compensation office, usually that of your canton. The SME Portal states that people who wish to become self-employed must have their new status recognised by the compensation office.
2. Prepare evidence of your activity: offers sent, invoices, client list, website or presentation page. The office judges on facts.
3. Keep a simple record of your income and expenses from the very first franc. You will need it for AHV and for your tax return.

You do not need to set up a company to start. According to the SME Portal, a sole proprietorship requires no minimum capital and no particular formalities. In return, you are personally liable, with your private assets, for the debts of the activity.

From what turnover do you have to register with the commercial register and for VAT in Switzerland?

Two thresholds, both at CHF 100’000 in annual turnover:

• Commercial register. For a sole proprietorship, registration is only mandatory from CHF 100’000 in turnover (SME Portal).
• VAT. Self-employed people with a turnover above CHF 100’000 are subject to VAT, except in certain fields such as insurance, health or agriculture (SME Portal). The Swiss Federal Tax Administration refers to a turnover of at least 100’000 francs from supplies that are not excluded from the tax, and states that a business can register voluntarily without reaching that threshold. Check your case with the Federal Tax Administration.

What if I am unemployed?

Do not start anything without talking to your adviser at the regional employment centre (ORP/RAV). They and your unemployment fund will tell you what an activity changes for your entitlements.

Swiss unemployment insurance can also support a self-employment project. According to the SME Portal, people without a job can develop their project during a planning phase of up to 90 days, while receiving daily allowances, without checks and without having to keep looking for a job. The conditions mentioned: being unemployed through no fault of your own, being registered with the employment centre and entitled to allowances, being at least 20 years old, and submitting an application with an outline of the project. The application goes to the employment centre where you live.

And what about finding clients?

The legal framework does not give you a business. To go from an idea to a first paying client, follow the method for starting a business with AI. If you are still unsure about the activity, fill in the grid for choosing which business to start.

Frequently asked questions