Dual Activity in Switzerland

Professionally: In Swiss parlance, dual activity refers to the simultaneous pursuit of two professional paths. Specifically, it means that a person has two (or more) jobs or sources of income in parallel. Typical scenarios include a part-time job alongside a freelance business, or multiple projects in different fields. It's important that these parallel activities are organized independently and that the person performs distinct tasks in each role.

• Tax-wise: Dual activity leads to multiple incomes that must be considered for tax purposes. There is no separate taxation per activity; all income is ultimately added together in the tax return and assessed jointly. However, the tax office requires that different incomes are transparently declared – such as separately for employment and self-employment. This allows for the correct application of deductions and calculations (see Section 3 for tax details).

• Social insurance law: In Switzerland, social insurance clearly differentiates between employment and self-employment. In cases of dual activity, it is possible for both statuses to apply to the same person simultaneously. The AHV assesses each activity separately to determine whether it constitutes self-employment or employment – a comprehensive view across all activities is not taken. Accordingly, you must pay the correct contributions for both "paths" (e.g., AHV contributions on both the salary from employment and the profit from freelance work). Additionally, different insurance rules apply: As a self-employed person, for example, you are not insured against unemployment and are not automatically covered for accidents, and the second pillar (occupational pension) does not apply automatically. These specifics are covered in detail in Section 4.

• Legally: Dual activity also raises labor and contract law issues. Those who are employed and simultaneously perform assignments on their own account must comply with labor law obligations such as loyalty to their employer (no competition, no impairment of job performance, etc.). Work time regulations still apply: the legally permitted maximum working time per week (usually 45 or 50 hours) and daily rest periods of at least 11 hours must be respected overall – even if the hours are split between two jobs. There is also the issue of liability: In employment, the employer is often liable for damages, whereas in self-employment, you are personally and fully responsible. Dual activity therefore means navigating multiple legal relationships, each with its own rules.

In summary, dual activity in the Swiss context means simultaneously operating in multiple professional roles, with corresponding effects on taxes, social contributions, and legal obligations. The following sections explore the most important aspects in detail.

Not every dual activity looks the same. Especially for freelancers and the self-employed, there are different ways to structure parallel activities. Here are some typical examples:

• Simultaneously employed and self-employed: This is probably the most common model. For example, someone works part-time (e.g., 50%) at a company while building their own freelance business on the side. This setup offers financial stability through the salary and entrepreneurial freedom in the side business. Important: The second activity must not compete with the employer or impair performance, or else conflicts may arise (see Section 6).

• Two parallel self-employments: A freelancer may also run two separate business ventures simultaneously. For example, someone who works as a web developer and a photographer on a freelance basis, or someone who runs a consulting firm and simultaneously an online store as a sole proprietorship. Legally, this is the same self-employed person with multiple income streams – in practice, however, bookkeeping and time spent per business should be kept separate to maintain oversight.

• Activity in different cantons: Dual activity can also occur geographically. For example, a freelancer lives in Canton A but also operates a project/office in Canton B. Since cantons in Switzerland have their own tax authorities, such a case is handled with a tax allocation: income is assigned to the cantons based on the place of activity and taxed there. Usually, only one tax return needs to be filed in the canton of residence; the tax office then handles the distribution among cantons (for inter-cantonal activity). However, it is important to notify the tax authorities if you start a self-employed activity outside your canton of residence.

• Cross-border dual activity: In an increasingly connected work world, freelancers often work in multiple countries simultaneously. For example, someone might have a part-time job in Switzerland and freelance for clients abroad (or vice versa). In such cases, additional questions arise: Where is the income taxed? Which country is responsible for social insurance? Within the EU/Switzerland, coordination rules apply: Generally, you are socially insured in the country where the dependent employment is performed – this takes precedence when there is also self-employment abroad. Tax-wise, it depends on double taxation agreements; foreign income is usually either exempt (with progression clause) or credited, but must be declared in the Swiss tax return. These cross-border cases are complex and should be reviewed with professionals to avoid missing obligations.

Other variants: Dual activity can also mean two employment relationships (e.g., two part-time jobs with different employers). Similar principles apply here: all salaries must be correctly accounted for and taxed, and the employee must avoid overwork and conflicts. Overall, freelancers in Switzerland enjoy relatively flexible rules for combining different activities – as long as they follow the relevant guidelines.

If you generate multiple incomes in parallel in Switzerland, there are some tax implications to consider. First and foremost: All income is taxable and must be declared, regardless of whether it comes from employment or self-employment. The tax office makes no exceptions – even side income must be fully reported. Failure to do so risks retroactive taxes, interest, and even penalties for tax evasion. Therefore, it is essential to report all income sources transparently.

• Combined assessment vs. separate declaration: In the tax return, income from employment (salary, wages) and self-employment is normally recorded in separate sections. For freelancers with dual activity, this means: your salary appears in the wage section, while the profit from your self-employed side business is recorded in the profit and loss statement. However, all income is taxed together. There are no separate tax rates per type of income; instead, the additional side income increases your total taxable income and can push you into a higher tax bracket. In other words: a second income may increase your overall tax burden percentage-wise, since it adds to your base and may trigger a progressive rate.

• Deduction opportunities: On the plus side, multiple activities often allow for additional deductions. For example, for side income from employment (e.g., a second small job), flat-rate work-related expenses can be deducted – typically 20% of the side income, with a minimum amount (the exact amounts vary by canton and year). For self-employed side income, all business-related expenses can be deducted (travel, materials, infrastructure, etc.), meaning only the net profit is taxed. Of course, you must have accurate records. Freelancers with side income are therefore strongly advised to keep separate bookkeeping or at least income-expense records for each activity to substantiate all deductible costs.

• Multiple cantons or countries: If income is earned in different cantons or countries, rules to avoid double taxation apply. Within Switzerland, as mentioned, a tax allocation is made: the income portion is assigned to the canton where the activity is carried out and taxed at the local rate. In practice, either a separate tax return is filed per canton (inter-cantonal) or everything is declared in the canton of residence, and the authorities split it up. Internationally, it depends on the double taxation agreement (DTA): usually, foreign self-employment income is considered in the Swiss residence country only for rate determination (progression clause), if the DTA assigns the taxing right to the activity country. Conversely, foreign employment income (e.g., cross-border commuters) may be subject to special agreements. In all cases, foreign income must also be declared in the Swiss tax return, at least for rate determination. In cross-border cases, it's best to seek tax advice to ensure all declaration requirements are met.

• Special case of business form: Most freelancers operate as sole proprietors (sole proprietorships), where profit and income are considered the same. However, if you establish a corporation (GmbH/AG) for one of the activities in your dual activity setup, a further tax topic arises: double taxation. Profits of the GmbH/AG are first taxed at the corporate level, and distributed dividends are then taxed again at the shareholder level. Moreover, you draw a salary from your own company, which is also taxed. This setup results in a more complex tax burden, but may be appropriate for larger ventures. For side jobs or small-scale activities, the sole proprietorship is usually the simpler and less tax-heavy choice.

Conclusion – Taxes: Multiple parallel activities require disciplined tax management. Declare all income properly, take advantage of allowed deductions, and keep an eye on your overall tax burden. If in doubt, contact the tax office or a tax advisor early to explore individual optimization opportunities (e.g., dual earner deduction for married couples) and avoid pitfalls.

Running multiple activities in parallel has clear implications for social insurance. In Switzerland, the most relevant areas are: AHV/IV/EO (1st pillar), pension fund (BVG) or 2nd pillar, ALV (unemployment insurance), and accident insurance. The following explains the rules and special cases for how these insurances handle dual activity.

AHV/IV/EO – 1st pillar contributions

Every working person in Switzerland must pay contributions to AHV, IV, and EO – this applies to every income. With dual activity, this means: All income is subject to AHV contributions, calculated separately based on type of work. For example, earning CHF 40,000 in an employed job leads to standard payroll deductions (5.3% each for employee and employer). Additionally, CHF 15,000 earned from freelance work is also subject to AHV contributions, but as a self-employed person (graduated rate of about 5–10% of net profit depending on income level).

However, there are small income thresholds and special rules: If the self-employed side income is less than CHF 2,300 per year, no AHV contributions need to be paid, unless you explicitly request it. This threshold is meant to ease the burden on minor supplementary earnings (e.g., hobby revenue). Important: This limit applies per year and per person for self-employed side incomes. If you earn more than CHF 2,300, registration with the AHV compensation office is mandatory. Even if you already pay AHV contributions from your main job, you still have to contribute for the side business – the second activity must be separately registered and accounted for. The authority will formally assess whether it constitutes self-employment (see note on bogus self-employment in Section 6).

For employed side jobs (e.g., a mini job alongside the main job), a similar rule applies: income up to CHF 2,300 per year per employer is AHV-exempt, unless the employee voluntarily requests contribution deductions. Many employers request written confirmation from employees opting out of deductions to avoid future liabilities. (An exception is domestic workers: contributions are always required regardless of income.)

Additionally, a coordination rule applies: If someone earns less than CHF 9,300 from a self-employed side business and has a salary of at least CHF 4,702 from employment (thresholds vary slightly), the compensation office may reduce contributions for the side activity. This avoids disproportionately burdening those who already contribute significantly through employment. Whether and how this reduction is applied is decided by the compensation office upon request.

Practical note: Register any self-employed side business promptly with the compensation office once it becomes relevant. After registration, you usually receive provisional invoices based on estimated income, with final settlement after your tax assessment. Registration also avoids a client being retroactively deemed your employer (see bogus self-employment in Section 6). Also keep main and side business income clearly separated – ideally with separate accounts/bookkeeping, so you can demonstrate profits to the AHV. AHV does not have a comprehensive view of individuals, so each income type must be assessed and billed separately.