Switzerland’s long-running effort to stabilise its relationship with the European Union took a decisive step forward on 11 November 2025 when details of a new 1,800-page institutional agreement leaked in Bern. Among the most eye-catching provisions is a clause that would give EU citizens the right to obtain a **“settlement permit” (C-permit)** automatically after five consecutive years of lawful residence in Switzerland—without the language or integration tests that currently apply.
If ratified, the measure could transform the legal status of an estimated **700,000 EU nationals who already meet the five-year threshold**, turning what is today a renewable B-permit into a permanent status that grants unfettered access to the Swiss labour market and social benefits. Business associations welcomed the move, arguing that easier long-term status will help companies retain talent in a labour market suffering acute skills shortages—especially in life-sciences clusters around Basel and the fast-growing fintech scene in Zurich.
![Swiss-EU Draft Deal Would Grant Unconditional Permanent Residence to EU Nationals After Five Years]()
The proposal is part of a broader package designed to ensure Switzerland’s continued privileged access to the EU single market in return for closer alignment with EU rules on state aid, free movement and dispute settlement. Critics, led by the right-wing Swiss People’s Party (SVP), warn that unconditional permanence could spur a surge in immigration and strain housing, healthcare and transport infrastructure. They have already threatened a referendum—an ever-present wildcard in Swiss politics.
For global mobility managers the potential change is significant. EU assignees currently face uncertainty after five years because conversion from a B-permit to a C-permit is at the discretion of cantonal authorities and dependent on meeting integration criteria. Should the draft deal pass, HR teams could plan for **seamless long-term assignments and faster family reunification**, while employees would enjoy greater portability when moving between cantons or changing employers. Companies should nonetheless prepare for a transition period; the Federal Council has indicated that the new residence rule would not enter into force until 2027 at the earliest, pending parliamentary approval in Bern and Brussels—and, very likely, a popular vote.
In practical terms, employers should begin auditing their EU workforce to identify individuals who will cross the five-year mark in 2026-27 and budget for possible legal-status upgrades. They should also watch accompanying legislation on social-security coordination, as permanent residence may trigger new pension or health-insurance obligations. Finally, mobility teams should engage early with cantonal authorities, many of which will need extra resources to cope with a backlog of automatic C-permit issuances once the reform kicks in.
If ratified, the measure could transform the legal status of an estimated **700,000 EU nationals who already meet the five-year threshold**, turning what is today a renewable B-permit into a permanent status that grants unfettered access to the Swiss labour market and social benefits. Business associations welcomed the move, arguing that easier long-term status will help companies retain talent in a labour market suffering acute skills shortages—especially in life-sciences clusters around Basel and the fast-growing fintech scene in Zurich.
The proposal is part of a broader package designed to ensure Switzerland’s continued privileged access to the EU single market in return for closer alignment with EU rules on state aid, free movement and dispute settlement. Critics, led by the right-wing Swiss People’s Party (SVP), warn that unconditional permanence could spur a surge in immigration and strain housing, healthcare and transport infrastructure. They have already threatened a referendum—an ever-present wildcard in Swiss politics.
For global mobility managers the potential change is significant. EU assignees currently face uncertainty after five years because conversion from a B-permit to a C-permit is at the discretion of cantonal authorities and dependent on meeting integration criteria. Should the draft deal pass, HR teams could plan for **seamless long-term assignments and faster family reunification**, while employees would enjoy greater portability when moving between cantons or changing employers. Companies should nonetheless prepare for a transition period; the Federal Council has indicated that the new residence rule would not enter into force until 2027 at the earliest, pending parliamentary approval in Bern and Brussels—and, very likely, a popular vote.
In practical terms, employers should begin auditing their EU workforce to identify individuals who will cross the five-year mark in 2026-27 and budget for possible legal-status upgrades. They should also watch accompanying legislation on social-security coordination, as permanent residence may trigger new pension or health-insurance obligations. Finally, mobility teams should engage early with cantonal authorities, many of which will need extra resources to cope with a backlog of automatic C-permit issuances once the reform kicks in.
