Settlement agreement between Switzerland and the USA. Practical significance today.
Last reviewed
03.06.2026
Statute as of
01.01.2024
Statute citations
7 linked
Reading time
20 min read
As of: 01.06.2026 · Snapshot
Agreement on Establishment between Switzerland and the USA 1850 — the 5-year path to C settlement permit for US citizens
Frequently asked
4 answers on this topic.
Concrete questions people ask about USA — Treaty of 1850.
Formally yes, but in practice this is superseded by the Federal Act on Foreign Nationals and Integration. US citizens are third-country nationals and are subject to the ordinary provisions of the Federal Act on Foreign Nationals and Integration (B residence permit, contingent, priority check). The agreement does not provide for facilitated settlement. C settlement permit after 10 years under the ordinary procedure, and after 5 years if the requirements for facilitated naturalisation are met.
Statute citations
7 statute citations, each linked directly.
01Reviewed: Tier A · Info
Niederlassungs- und Handelsvertrag CH–USA 1850, SR 0.142.113.361
: 01.01.2024 — Current version of FNIA SR 142.20, OASA SR 142.201 and SR 0.142.113.361 (in force since 8.11.1855).
Status
: AI draft, pending review by the supervising lawyer of record (CLR — Lawyer-of-Record).
1. Overview — the bilateral agreement in a nutshell
The Treaty of Establishment and Commerce between the Swiss Confederation and the United States of America of 25 November 1850 (Systematic Collection Number SR 0.142.113.361) is one of the oldest still in force bilateral agreements of Switzerland and the substantive legal basis for the fact that nationals of the United States are treated preferentially when granting the Swiss settlement permit, after five instead of ten years of lawful residence. The treaty was ratified on 8 November 1855 and has been continuously applicable ever since – with the exception of individual adjustments and the formal adoption of certain consular provisions.
Switzerland drafted the agreement during a period of economic and migratory change: in the 19th century, the USA was the most important country of emigration for Swiss citizens, which is why the mutual settlement privileges were highly relevant for both parties to the agreement. Today, the migration balance is partially reversing – US citizens are the largest non-European group of people in Switzerland with long-term residence – and the agreement is primarily unfolding its practical significance in the reduced waiting period for the C settlement permit.
From a constitutional law perspective, the agreement is enshrined in both contracting states: Switzerland applies the monist principle, which makes the agreement directly part of federal legislation (Art. 5 para. 4 and Art. 190 of the Federal Constitution); in the USA, it became the "supreme law of the land" within the meaning of Art. VI cl. 2 of the US Constitution after ratification by the Senate. A unilateral repeal by the Swiss legislature would be inadmissible under international law; a mutually agreed revision or termination would be possible through diplomatic channels, but this has not occurred for 175 years.
2. Main provisions — what the agreement actually governs
The agreement contains, in its original seventeen articles (with subsequent partial repeals and amendments), three main sets of provisions: rights of establishment, rights relating to property and economic activity, and equal treatment before consular and judicial authorities. For Swiss immigration law 2026, the first set of provisions is primarily relevant.
Art. I (Right of Establishment, in substance): The Contracting Parties grant each other that their respective nationals shall be treated on the territory of the other Contracting Party, under the laws in force there, in the same way as their own nationals, as regards establishment, the exercise of trade and industry, and residence. This clause on national treatment forms the basis for the privileges that have been accumulated in practice in Switzerland in the application of the AIG. The article has been modified in its specific wording over the years, but it has remained as a fundamental rule.
Art. III (Equality before the law and property, in substance): Both Contracting Parties guarantee to the nationals of the other Party that they shall enjoy the same rights with regard to property, inheritance and acquisition as their own nationals, that they may appear before the courts without impediment, and that no discriminatory special taxes or charges shall be levied. This clause in particular guarantees the acquisition of real estate by US nationals residing in Switzerland on the same basis as for Swiss nationals – with the cantonal and federal restrictions for persons residing abroad (Lex Koller, SR 211.412.41) applying independently.
Anti-discrimination clause: In keeping with the spirit of the entire agreement, and reinforced by Articles I and III, the agreement prohibits the contracting parties from treating US nationals or Swiss nationals in the key areas of establishment, property and the exercise of commercial activities in a less favourable manner than their respective nationals. The clause is not a most-favoured-nation clause in the strict sense (it does not therefore automatically grant the right to the most favourable treatment for third-country nationals), but it has a similar effect in practice, insofar as national law must ensure that any preferential treatment is compatible with the provisions of the agreement.
VERIFY (as of 2026): The precise current scope of individual articles – in particular, the question of which provisions have been superseded or modified by subsequent bilateral agreements (consular agreement, extradition treaty, double taxation agreement) – can be verified with the Federal Department of Foreign Affairs (EDA) or in the consolidated Fedlex version of SR 0.142.113.361. Consultants are advised to consult the current treaty text or the SEM practice guidelines before applying them to any specific procedure.
3. The key practical consequence — C settlement permit after 5 instead of 10 years
The most significant effect of the agreement on Swiss immigration practice is the halving of the waiting period for the settlement permit. While the AIG stipulates an ordinary period of ten years of residence with a short-term or residence permit (of which the last five years must be continuous with a residence permit) for third-country nationals under Art. 34 para. 2 lit. a, US citizens can be granted a C settlement permit based on the agreement after only five years of legal residence.
The legal basis for this preferential treatment lies on two axes: firstly, the shortened deadline results directly from the agreement itself (clause on the treatment of nationals and on the right of establishment, Art. I, interpreted in accordance with its purpose); secondly, it is specified in national law by the practice of the State Secretariat for Migration (SEM) and by the cantonal migration offices, in particular on the basis of Art. 34 para. 5 AIG (persons who are particularly well integrated) and Art. 60 VZAE in conjunction with the SEM directives on the C settlement permit.
Important: The reduction in the required period is discretionary, not a subjective legal entitlement. The cantonal authority must fully examine all other requirements for C settlement, in particular the integration criteria under Art. 58a AIG and the language requirements specified in Fedlex·Art. 60a VZAE. A US citizen who has received social assistance for five years, has violated the law, or has not achieved the required language levels will have their application rejected, as will a corresponding applicant without a contractual privilege after ten years.
VERIFY — current SEM practice for US settlement in 2026: The SEM guidelines on "Foreign Nationals" (Chapter III, C settlement permit, sections on contract-based privileges) specify each year which documentary evidence the migration authorities require in the five-year application. The current version of the SEM guidelines must be consulted before each consultation.
4. Requirements for US C settlement — the integration criteria
The agreement shortens the deadline; it does not replace the substantive integration assessment. A US citizen who applies for a C permit after five years of lawful residence must meet the same integration criteria that the FNIA provides for the expedited granting of a C permit under Art. 34 para. 4 FNIA – the contractual privilege applies exclusively to the temporal component.
Requirements at a glance (with a cross-link to permits/permit_c_settled.md for the full version):
Requirement
Legal basis
Note
5 years of uninterrupted lawful residence
Agreement + Art. 34 para. 5 AIG
with a valid B residence permit; L periods count under strict conditions
The cantonal authorities — and, secondly, the SEM in the approval procedure under Fedlex·Art. 99 AIG in conjunction with Fedlex·Art. 85 VZAE — examine each of these criteria individually and in their entirety. Swiss C settlement is also, even with contractual privilege, a decision at the discretion of the authority with a tendency to grant: if the criteria are met, the permit will generally be granted; if there are justified doubts, the authority may refuse or postpone it.
5. Comparable Bilateral Agreements — who still benefits from the five-year waiting period
The five-year period of eligibility for the C settlement permit is not limited to US citizens. A number of other states enjoy the same privilege on a comparable bilateral treaty basis or by virtue of a SEM directive. According to long-standing SEM practice, the list includes, in particular:
Canada (bilateral settlement agreement, SEM practice)
Australia and New Zealand (SEM Directive)
United Kingdom (for rights acquired before Brexit or, under the Switzerland–UK Agreement on the Rights of Citizens, for the groups of people protected by it; see bilaterals/bi_uk_post_brexit_citizens_rights.md)
Germany, Austria, Italy, France, Belgium, the Netherlands, Luxembourg, Spain, Portugal, Greece, Denmark, Sweden, Norway, Finland, Liechtenstein and other EU/EFTA member states (bilateral agreements on the establishment of companies, which in practice are superseded by the AFMP).
EU/EFTA member states in general under the Agreement on the Free Movement of Persons (AFMP, SR 0.142.112.681), which establishes its own system for the right of establishment that is structurally independent of the treaty system of the 19th century (see framework/fw_fza_vfp_glossary.md).
Important clarification: For EU/EFTA citizens, the preferential treatment in practice applies via the AFMP, not via the historical settlement agreements of the 19th century. The US treaty of 1850 is therefore, in the current context, one of the few remaining classic bilateral preferential treatments outside the AFMP regime, with particular practical importance for the large US citizen group in Switzerland.
VERIFY — complete updated list: A definitive, officially consolidated list of the five-year treaty states is periodically published by the SEM in the instructions for the foreign nationals section. The drafter recommends consulting the current SEM practice before each consultation relating to a specific state.
6. The decisive break — the US remains a third country under the AIG.
However important the five-year privilege in the granting of a C permit may be: before the C permit requirements are met, i.e. during the first years of residence in Switzerland, the Federal Act on Foreign Nationals and Integration treats US citizens as third-country nationals in the strict sense. This has significant practical consequences that must be considered before any consultation.
First permit application procedure — the full third-country hurdle: A US citizen who wishes to work in Switzerland undergoes the ordinary FNIA third-country procedure with all the restrictions that do not derive from the 1850 treaty:
Priority for Swiss nationals (Art. 21 FNIA): The Swiss employer must demonstrate that no suitable worker is available on the Swiss or AFMP labour market.
Annual maximum numbers / quotas (Art. 20 FNIA in conjunction with Annex 1 and 2 OASA): US nationals are counted towards the B and L third-state quotas, which the Federal Council determines annually and allocates to the cantons.
Personal requirements (Art. 23 FNIA): In principle, permits are only granted to qualified workers (managers, specialists, university degree or equivalent professional experience).
Locally applicable wage and working conditions (Art. 22 FNIA): The employment must not undercut Swiss wage levels.
Only after five years of lawful residence does the treaty privilege apply – and even then, only in relation to the question of entitlement to a C permit, not in relation to the question of initial residence. Anyone who, as a US national, does not come to Switzerland via marriage, study, family reunification or a privileged L pathway, but exclusively via ordinary work authorisation, will face the full impact of the third-country regime.
This structural two-tier system — third-country regime upon entry, treaty privilege upon settlement — is the central message of any consultation for US clients. Anyone discussing the immigration prospects of a US national must mention the treaty privilege (within five years), but must not ignore the preceding third-country filter.
7. Family reunification for US nationals — application of the third-country nationals regime, not the FZA.
The 1850 Agreement does not apply to family reunification. US nationals holding a B or C permit are subject to the general third-country nationals’ rules of Articles 43 and 44 of the Federal Act on Foreign Nationals and Integration (FNIA) for the reunification of their family members.
C permit holders (Art. 43 AIG): Spouses and unmarried children under 18 are entitled to family reunification, provided that: they will live together with the applicant, suitable accommodation is available, they are not dependent on social assistance, they do not receive supplementary benefits, and spouses can communicate in the national language or have registered for a language support programme (language level A1 upon initial grant, see Art. 73a OASA).
B permit holders (Art. 44 AIG): In this case, there is a discretionary right to family reunification, subject to certain conditions, in particular the requirement of a secure livelihood for the entire family without recourse to social assistance. The authority has more discretion than in the case of C permit holders.
Deadlines (Art. 47 FNIA): The application for family reunification must be submitted within five years (for spouses and children over 12 years: twelve months) from the date of the permit or the establishment of the family. Late applications for family reunification will only be approved under very restrictive conditions ("important family reasons").
Contrast with the AFMP regime: EU/EFTA citizens can bring their family members under the much more generous conditions of AFMP Annex I, Article 3 — in particular, without an A1 language requirement and with a wider circle of persons (parents-in-law, dependent relatives). This asymmetry is a practical disadvantage for US families in Switzerland compared to EU/EFTA families, which is not remedied by the 1850 Agreement.
8. Naturalisation for US citizens — no special procedure
The 1850 treaty governs settlement, not citizenship. A US citizen seeking Swiss citizenship undergoes the full ordinary naturalisation procedure under the Federal Act on Swiss Citizenship (SCA, SR 141.0) and under cantonal and municipal law.
The standard requirements (Art. 9, 11, 12 SCA):
Federal residence requirement: ten years of lawful residence, including three years in the five years preceding the application; years between the ages of 8 and 18 count double (but a total of at least 6 actual years must be completed).
C settlement permit as a prerequisite for submitting the application (Art. 9 SCA).
Successful integration as defined in Art. 11 lit. a SCA, as further specified in Art. 12 SCA (respect for security and public order, respect for Swiss values, participation in economic and social life and education, promotion of family integration, B1 level of spoken language and A2 level of written language as defined in Art. 6 SCA).
No receipt of social welfare benefits in the three years prior to the application (clarification of the Ordinance on Social Welfare).
Additional cantonal and municipal requirements apply (length of residence in the canton/municipality, integration interview, knowledge test in some cantons).
Facilitated naturalisation (Art. 21 SCA) is possible for the spouse of a Swiss national after 5 years of marriage + 3 years of residence in Switzerland (or, if residing abroad, after 6 years of marriage and close ties to Switzerland). This facilitation is not specific to US citizens – it applies regardless of the nationality of the foreign spouse.
Dual citizenship Switzerland–USA: Switzerland permits dual citizenship without restriction; Swiss naturalisation does not require relinquishment of US citizenship. The USA, in turn, de factotolerates multiple citizenship and does not require recognition; at the same time, US citizenship is not terminated by the acquisition of another citizenship (unless the person concerned actively declares a waiver as part of a formal US renunciation). US-Swiss citizens with both passports are eligible to vote in Switzerland and remain subject to tax and reporting obligations in the USA (see point 10).
VERIFY — current SEM/SCA practice for US citizens: Naturalisation proceedings are conducted at cantonal and municipal level; the SEM issues the federal naturalisation permit. Cantonal practices vary. For detailed information on current practice, see permits/permit_naturalisation_paths.md and framework/fw_bug_2018_glossary.md.
9. Pre-application L routes — Trainee and au pair for US nationals
Before the five-year period has elapsed, there are two preliminary L pathways for US citizens, which in practice often represent the gateway to a longer-term stay and are facilitated compared to the ordinary third-country procedure in terms of the permit regime.
Trainee (intern within the framework of the bilateral trainee agreement): Switzerland and the USA are among the countries that have concluded a bilateral trainee agreement. On this basis, young US professionals aged between 18 and 35 with completed vocational training can work in Switzerland in their field of training for up to 18 months (12 plus 6 extension). The permit is not subject to quotas (does not count towards the annual maximum numbers) — however, priority is given to nationals and local wage conditions apply. Legal basis: Art. 42 AIG (young professionals) in conjunction with Art. 41–42 VZAE and the bilateral trainee agreement. Practical details: permits/permit_l_short_stay_subclasses.md, section 3.2.
Au pair: The SEM directive on au pairs governs the simplified procedure for third-country nationals aged between 18 and 25 who are hosted by a Swiss host family and perform light household duties for a maximum of 12 months in exchange for board, lodging and pocket money. The authorities issue the L permit under the au pair procedure, outside the priority for nationals (Fedlex·Art. 30 VZAE, hardship clause), if the requirements of the SEM directive are met. US citizens are regularly represented in this category. Practical details: permits/permit_l_short_stay_subclasses.md, section 3.1.
Both routes – unlike the contractual privilege in the case of C settlement – do not lead to a permanent privilege; they merely offer simplified entry and residence arrangements, which can subsequently (by changing the purpose of the permit or by means of a new permit procedure) lead to a B residence permit, provided that the ordinary requirements of the Federal Act on Foreign Nationals and Integration are met.
10. Tax Aspects — Anti-Scope, with a brief overview
The 1850 treaty does not contain a comprehensive tax arrangement. The tax relationship between Switzerland and the USA is governed by the Double Taxation Agreement (DTA Switzerland–USA, SR 0.672.933.61) and by a series of supplementary agreements, in particular the FATCA Agreement of 14 February 2013 (SR 0.672.933.63), which obliges Swiss financial institutions to report accounts held by US persons.
Citizenship-based taxation in the USA: The USA taxes its citizens worldwide, regardless of their place of residence. A US citizen residing in Switzerland therefore remains liable for tax and reporting obligations in the USA on their total worldwide income, even if the double taxation agreement contains exclusion, credit and exemption rules that mitigate most double taxation scenarios. The FBAR reporting requirement (Foreign Bank Account Report) for US persons with foreign accounts exceeding USD 10,000 is a frequently underestimated compliance area.
Practical consequence: Swiss banks have become increasingly reluctant to accept new US clients in recent years (FATCA cost-benefit analysis). A US citizen moving to Switzerland should clarify their access to banking services at an early stage – this is a common practical issue that has nothing to do with the right of residence itself, but can influence the migration decision.
Anti-Scope: SwissImmigrationPro is not a tax advisory service. The above information is intended to provide guidance on the existence and general outline of tax-related issues; for any specific question regarding tax obligations, FATCA reporting, FBAR reporting requirements, the principle of return, the treatment of 401(k) plans, IRAs or Roth structures under the Double Taxation Agreement, exit taxation upon acquiring Swiss citizenship or relinquishing US citizenship (Expatriation Tax, IRC § 877A), a qualified professional in international tax law should be consulted – ideally a law firm experienced in Swiss-US double taxation or a US Certified Public Accountant with Swiss experience.
11. Note on Reform — bilateral stability, not a subject for negotiation
The 1850 Treaty of Establishment has been in force for 175 years and is one of Switzerland’s most stable bilateral agreements. It is not the subject of ongoing bilateral negotiations between Switzerland and the United States, nor has either party to the treaty recently called for its revision or termination.
Structural stability factors:
Constitutional entrenchment in both states (Switzerland: monism, Art. 5 para. 4 of the Federal Constitution; USA: Art. VI cl. 2 of the US Constitution) makes unilateral revocation more difficult.
Mutual interest: The USA remains one of the most important countries for Swiss citizens to emigrate to; Switzerland is home to a growing US diaspora.
No visible political friction: The agreement is not a contentious issue in the political debate; neither the Swiss Federal Administration nor the US Administration has indicated any need for revision in recent years.
VERIFY — current status 2026: The current applicability — for example, whether individual provisions have been suspended or amended by subsequent bilateral agreements — can be verified in the consolidated version of Fedlex, SR 0.142.113.361. Those providing advice who do not specialise in international treaty law should consult the EDA, Directorate for International Law, or a law firm specialising in migration law for specific questions regarding application.
12. Anti-Scope — what this page is not
SwissImmigrationPro provides on this page a structured, legally sound overview of the 1850 settlement agreement between Switzerland and the USA and its practical effect on Swiss immigration law. This page is not individual legal advice and not a strategy for optimising the acquisition of settlement rights.
In particular, we do not make statements on:
Personal eligibility: Whether the requirements for the expedited grant of a C permit after 5 years are met in individual cases depends on the specific integration assessment carried out by the competent cantonal authority. We do not provide forecasts on the success of permit applications.
Optimisation advice: Whether a specific route to residence (trainee vs. ordinary work permit; B vs. C after 5 years vs. naturalisation after 10 years) is "the best" for a particular case is a matter of legal strategy, not a question of knowledge. Cross-link: CLR (Lawyer-of-Record), and other specialists in immigration law registered in the cantonal bar register.
Tax advice: As explained in detail in point 10, the Swiss-American tax situation is highly complex (citizenship-based taxation, FATCA, FBAR, double taxation agreement offsetting, expatriation tax). We expressly refer you to specialist tax experts.
US Immigration Law: This page deals exclusively with Swiss immigration law and the contractual privileges granted to US citizens in Switzerland. For questions regarding US immigration law (visas, green cards, naturalisation), a law firm authorised to practice US immigration law should be consulted.
13. Cross-references
permits/permit_c_settled.md — C settlement permit, full version with integration criteria and grounds for revocation
permits/permit_b_resident.md — B residence permit, initial residence scheme for nationals of third countries
permits/permit_l_short_stay_subclasses.md — L permit, trainee and au pair subcategories
permits/permit_naturalisation_paths.md — ordinary and facilitated naturalisation
bilaterals/bi_uk_post_brexit_citizens_rights.md — Switzerland–UK Citizens’ Rights Agreement (comparative case)
framework/fw_aig_vzae_glossary.md — AIG and OASA terminology
