A leaked draft of the long-awaited institutional framework agreement between Switzerland and the European Union, seen by VisaHQ and several Bern-based media outlets on 11 November 2025, suggests a seismic shift in Swiss immigration law. The 1,800-page text contains a clause that would entitle any EU national who has lived in Switzerland continuously and lawfully for five years to receive a C-permit – Switzerland’s permanent residence document – automatically and unconditionally. At present, most EU citizens spend years on renewable B-permits and must pass language or integration tests before qualifying for a settlement permit.
If enacted, the rule would instantly upgrade the legal status of roughly 700,000 EU nationals who already meet the five-year threshold. They would gain unrestricted access to the Swiss labour market, the right to change employers or become self-employed without prior authorisation, and entitlement to most social benefits. Cross-border talent pipelines would also become more flexible: employers could move staff to Swiss offices in the knowledge that permanent residence – and therefore intra-company mobility – would follow in a predictable timeframe.
![Leaked Swiss-EU draft deal would grant automatic permanent residence to EU citizens after five years]()
Politically, the draft aims to stabilise Swiss-EU relations after the Federal Council’s 2021 decision to walk away from an earlier accord. The new framework is designed as a package: easier permanent residence for EU citizens is paired with Swiss access to EU research programmes, electricity markets and public procurement. Right-of-centre parties and some cantonal authorities have already criticised the residence clause, warning of pressure on housing and infrastructure, while business associations, universities and the pharmaceutical sector have reacted favourably.
Practical implications are still several steps away. The text must first be initialled by negotiators, approved by the Federal Council, translated into Switzerland’s four national languages and then submitted to Parliament. Observers expect fierce debate and a possible optional referendum in late 2026. Multinational employers are nevertheless advised to map out which EU staff could benefit and to update long-term assignment costings, social-security planning and talent-retention policies accordingly.
If enacted, the rule would instantly upgrade the legal status of roughly 700,000 EU nationals who already meet the five-year threshold. They would gain unrestricted access to the Swiss labour market, the right to change employers or become self-employed without prior authorisation, and entitlement to most social benefits. Cross-border talent pipelines would also become more flexible: employers could move staff to Swiss offices in the knowledge that permanent residence – and therefore intra-company mobility – would follow in a predictable timeframe.
Politically, the draft aims to stabilise Swiss-EU relations after the Federal Council’s 2021 decision to walk away from an earlier accord. The new framework is designed as a package: easier permanent residence for EU citizens is paired with Swiss access to EU research programmes, electricity markets and public procurement. Right-of-centre parties and some cantonal authorities have already criticised the residence clause, warning of pressure on housing and infrastructure, while business associations, universities and the pharmaceutical sector have reacted favourably.
Practical implications are still several steps away. The text must first be initialled by negotiators, approved by the Federal Council, translated into Switzerland’s four national languages and then submitted to Parliament. Observers expect fierce debate and a possible optional referendum in late 2026. Multinational employers are nevertheless advised to map out which EU staff could benefit and to update long-term assignment costings, social-security planning and talent-retention policies accordingly.
