A quasi-resident, as defined in Swiss law, is a person who does not live in Switzerland, but earns the bulk of their income from activities in Switzerland. Individuals with this status must pay Swiss tax on income generated in Switzerland even though they are not resident. The quasi-residence status may also apply to individuals who rent a home in Switzerland but do not intend to remain in Switzerland over a long term.
Quasi-residence compliments the two primary classifications of resident (living and taxable in Switzerland) and non-resident (not living and taxable in Switzerland). If you are not already legally resident in another country and are assigned an address in Switzerland by law, you will be classified as a resident.
The differentiation makes it clear whether or not an individual who works in Switzerland is subject to Swiss taxes. Quasi-residents are required to pay taxes in Switzerland if at least 90 percent of their gross income stems from Swiss sources. The income of their entire household is accounted for when determining this. Even if an individual is 100 percent employed in Switzerland, they may not fall under the quasi-resident designation if their spouse is employed in their country of residence.
A quasi-resident is required to pay Swiss withholding tax, which is deducted directly from their salary by their Swiss employer. If your country of residence has an eligible double taxation agreement with Switzerland, you can generally apply to have the cost of Swiss taxes deducted from your tax bill in your country of residence. This helps you avoid paying double taxes on the same income. You will generally have to present your Swiss salary statements showing that you paid Swiss withholding taxes.
More on this topic:
The comprehensive guide for cross-border workers in Switzerland
