Taking a sabbatical or turning your back on everyday (work) life for several years is becoming increasingly popular. In this regard, there is a popular misconception that when you leave Switzerland, your tax and social security obligations expire. However, this is not true in every case.
Legal residence
According to Article 24 (1) of the Swiss Civil Code, in the event of a change of domicile:
"The domicile of a person, once established, remains in force until the acquisition of a new domicile."
In the case of a deregistration from Switzerland without taking up a new domicile abroad, the domicile in Switzerland therefore remains from a civil law perspective.
Consequences under tax law
In a Federal Court ruling from 2012, it was decided that the definition of domicile from a tax perspective follows the civil law approach. Therefore, the Swiss tax residency remains in effect until a tax residence has been established abroad.
Consequences from a social security perspective
For the purposes of social security coverage, the definition under civil law is also used, which is why globetrotters are generally still subject to Swiss social security. Globetrotters are explicitly mentioned in fact sheet 2.03 "Contributions to the AHV, IV and EO by persons not in gainful employment". Since persons who are not gainfully employed generally do not earn income that is subject to compulsory social security, the contributions of persons that are not gainfully employed are calculated on the basis of any pension income and their assets.
Administrative procedure & advice
If you are planning a longer stay abroad or a trip around the world, it is worth analyzing the specific situation in advance and taking appropriate measures. In addition, we also support you before, during and after the trip with the administrative tasks so that you can enjoy your time out to the fullest.
