Which Swiss canton should Hungarian employees choose?

What factors should you consider when choosing a Swiss canton?

When choosing a canton, at least four questions should be considered together: where the workplace is located, where affordable and suitable housing is available, which residential withholding tax may apply to you, and which cantonal system you will fall under in the event of job loss. A higher gross salary alone does not reflect a household’s actual financial situation.

In Switzerland, the “work canton” and the “canton of residence” are not necessarily the same. Someone may work in one canton but live in another, commuting daily or weekly. This is particularly important if housing near the job is expensive or suitable rental accommodation is scarce.

For an informed decision, it is advisable to assess the following factors separately:

As a Hungarian employee, one specific aspect of this decision is that, due to EU citizenship status, the entry and permit rules are not the same as those applicable to third-country nationals. This may make it easier to change jobs and residence later, but it does not eliminate the need for financial planning.

Before choosing a canton, it is advisable to record the gross salary stated in the employment contract, the expected place of residence, rent, insurance offers and information on withholding tax related to the place of residence in a single table. The aim is not to compare national averages, but to estimate the household's expected monthly cash flow.

Which residence permits are Hungarian citizens eligible for?

As EU-27 citizens, Hungarian nationals are covered by the Agreement on the Free Movement of Persons, i.e. the FZA. They are therefore not subject to the strict cantonal quotas applied to third-country nationals.

The Swiss residence permit is often called an Ausländerbewilligung or Ausländerausweis. From the perspective of choosing a canton as a Hungarian employee, B and L permits are the most relevant.

A work permit is called Arbeitsbewilligung in German. In everyday usage, however, residence and work rights are often referred to together, although administrative procedures and the names of documents may vary depending on the situation.

Hungarian citizenship is not merely an administrative detail in this context. EU/EFTA status under the FZA is why the B and L permits of Hungarian employees provide occupational and geographical mobility, as set out in the dossier. Rules applicable to third-country workers should therefore not automatically be applied to Hungarian citizens.

Specific administrative steps should always be checked with the competent cantonal migration authority for the place of residence and with the State Secretariat for Migration (SEM). Place of residence, employment contract and family situation may together affect which documents are requested.

Can we move freely between cantons with a B or L permit?

Yes. The B residence permit and L short-term permit issued to EU/EFTA citizens provide geographical and occupational mobility: holders may change jobs and move between cantons.

Changing cantons is called Changing Cantons. For Hungarian employees, this means that neither the employer’s canton nor the canton of residence necessarily ties them to a single location in the long term.

This flexibility can offer a practical advantage during the initial period in Switzerland. For example, someone may initially rent a flat close to their workplace and later choose another canton or municipality if it offers more favourable housing, transport or household costs.

However, mobility does not mean that every decision to move is financially neutral. When changing residence, the following factors may change:

• The withholding tax rate at the place of residence may differ from the rate in the previous canton or municipality.

• The premium for compulsory basic health insurance may vary by region and canton.

• Rental prices and availability may also differ from one municipality to another.

• In the event of job loss, the RAV office responsible for the place of residence will be the primary point of contact.

• When moving, it is particularly important to keep residential details and official registrations up to date.

A change of canton should therefore not be viewed solely as a permit-related matter. The appropriate sequence is generally to first assess the total cost of living in the prospective location and the practicality of commuting, then complete the relevant administrative formalities based on official cantonal guidance.

How does our place of residence affect the withholding tax we pay?

Foreign employees living in Switzerland who do not hold a C settlement permit – including Hungarians with a B or L permit – may be subject to withholding tax. Withholding tax, in German Quellensteuer, is deducted directly from wages by the employer.

Withholding tax is not a uniform, nationwide Swiss rate. According to ch.ch, its amount can vary significantly between cantons, as it also includes elements of federal, cantonal and local, i.e. municipal (Gemeinde) taxes.

For this reason, two Hungarian employees with the same gross salary may receive different net salaries if their main residence is in a different canton or municipality. The actual deduction is not determined solely by the name of the canton: the place of residence, personal and family circumstances, and the tax table applicable in the relevant year also matter.

For commuters travelling between cantons, withholding tax must generally be paid according to the rate of the canton of residence, i.e. the main place of stay. Since the research dossier also cites a community forum source for this determination, it is advisable in individual circumstances to seek official confirmation from the competent cantonal tax authority or the Eidgenössische Steuerverwaltung (ESTV).

The following mistakes should be avoided when comparing withholding tax:

1. Do not look for a nationwide tax rate. The Quellensteuer also includes cantonal and municipal components, so comparisons may be misleading without specifying the exact place of residence.

1. Do not consider only the canton where the workplace is located. In the case of cross-cantonal commuting, the rate applicable to the main place of residence may generally be relevant.

1. Do not treat example figures from previous years as current rates. Tax tables, personal circumstances and changes in residence can all affect the deduction.

1. Do not confuse withholding tax with the total Swiss tax burden. Withholding tax is a method of deduction applied by the employer; a simple canton ranking does not replace an individual tax assessment.

1. Calculate net salary based on residence-related information. No reliable conclusion can be drawn from the gross salary stated in the employment contract without also taking the actual place of residence into account.

From a Hungarian perspective, it is particularly important not to compare only the monthly gross salary in CHF with income in Hungary before accepting a job in Switzerland. Withholding tax, housing and health insurance together determine the amount that is actually available after everyday expenses.

What cost-of-living differences can be expected between the cantons?

Living costs in Switzerland can vary considerably between cantons and municipalities. The most important differing items are rent, compulsory basic health insurance and taxes, which together determine a household’s actual purchasing power.

It is therefore not enough to ask which canton is “cheap”. There may also be significant differences within a canton between places of residence in urban areas and smaller municipalities. Due to housing, the insurance region and the municipal tax environment, even two nearby municipalities do not necessarily have the same monthly cost level.

According to an example dated 23 February 2026 in the research dossier, a family’s annual compulsory basic health insurance premium in canton Zug is approximately 10 700 CHF. This is neither a general Swiss premium level nor an amount applicable to every household in Zug: compulsory basic health insurance premiums vary by canton and region.

For comparing cantons, it is advisable to follow the order below:

1. What is the total monthly cost of housing?

In addition to rent, the location of the property is also decisive. A cheaper home does not necessarily mean lower overall expenditure if the workplace is far away and daily commuting entails significant time or costs.

When choosing a place of residence, the rent should be assessed together with accessibility to the workplace. The place of work, transport connections and the actual frequency of commuting are all part of the decision.

2. Which health insurance region will the household fall into?

The cost of compulsory basic health insurance is not uniform throughout Switzerland. There may be cantonal and regional differences, so the insurance premium should not be inferred from an example from another canton.

For those moving with a family, this can be a particularly significant expense. The cost structure of a single person and a multi-person household differs, so individual offers must be interpreted for the entire family.

3. How can the tax burden at your place of residence vary?

For withholding tax, both the canton and the municipality may play a role. Therefore, even where the rent appears favourable, it is necessary to check the withholding tax framework associated with the selected primary residence.

The tax burden at your place of residence must always be assessed based on the current official tax table and your individual circumstances. Outdated online calculations or the experiences of other households are no substitute for this verification.

4. How much remains after fixed costs?

When choosing a canton, the most useful unit of comparison is the household’s estimated monthly balance. This should include at least net salary, housing, health insurance and commuting costs.

As a Hungarian employee, you can make a well-founded decision by comparing several specific residential scenarios rather than looking for one single “good canton”. For the same workplace, it is advisable to examine at least one nearby place of residence, one with more favourable housing costs and one with a different tax environment.

How do the cantonal employment offices, the RAVs, help in the event of job loss?

In the event of job loss, you must register with the Regional Employment Centre responsible for your place of residence, in German Regionales Arbeitsvermittlungszentrum (RAV) . The RAV supports re-employment and monitors job-search activities.

In Switzerland, unemployment insurance and job placement operate within a decentralised, cantonal system. Therefore, responsibility for the RAV is determined primarily by the place of residence rather than the employer's location.

Contact details for RAV offices can be found via the official Arbeit.swiss platform. The service has a dual role:

• The RAV provides support in finding new employment.

• The RAV monitors and verifies job-search activities.

• The office operating in the canton of residence is the responsible point of contact.

• A change of canton can therefore also have practical implications in the event of job loss.

This does not mean that a canton should be chosen because of the RAV. It means that a residential decision also has administrative consequences in the event of labour-market uncertainty. Anyone deciding between two similar places of residence should also consider which cantonal institutional system the respective address will connect them to.

This article does not detail the individual eligibility conditions, deadlines and financial benefits relating to job loss. These must be checked separately based on the current information provided by Arbeit.swiss and the cantonal RAV.

Sources

• ch.ch: Permits for living in Switzerland —

• State Secretariat for Migration (SEM): FAQ – EU/EFTA citizens in Switzerland —

• ETH Zürich: Change canton —

• ch.ch: Withholding tax —

• ch.ch: Paying taxes —

• Frontalieri Ticino: Cost of living in Switzerland – ranking of expensive and affordable municipalities —

• Arbeit.swiss: Contact —

• Arbeit.swiss: Official portal —

• Reddit: B permit in a different canton from where you work and live —

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