Compensation fund, AVS contributions, IDE number. The practical procedure for registering your activity legally
Updated May 2026
Contents
- Why this guide exists
- Self-employed status, what it actually means
- Before you start. What must already be in place
- The six steps of registration
- Choosing your compensation fund
- Contribution rates 2026. What you will actually pay
- The documents checklist
- Common pitfalls and how to avoid them
- Frequently asked questions
- Support and resources
01Why This Guide Exists
Most escorts working in Switzerland know they should “declare their income” but the actual procedure is rarely explained in plain terms. There is a specific path: the compensation fund (caisse de compensation), AVS recognition of self-employed status, the IDE business identification number, and the cantonal tax declaration. Each step has its own logic and timing.
This guide walks through the procedure end to end, with a focus on what actually applies to sex workers in Switzerland, including a few simplifications that exist specifically for this profession, especially in Geneva.
If you have not yet read our companion piece on taxes for escorts in Switzerland, start there: it explains why contributions matter (rentes, AI, APG, fiscal consequences). This article explains how to set up the registration that makes those contributions possible.
02Self-Employed Status. What It Actually Means
In Swiss social insurance law, the line between salaried and self-employed is not contractual. It is economic. A compensation fund decides your status based on the real conditions of your work, not what a contract says.
Standard criteria for self-employed status (according to OFAS guidelines):
- You work in your own name and on your own account
- You assume the economic risk of your activity (no income if no clients)
- You are free to organize your work without instructions from a third party
- You work for multiple clients (mandataires)
- You make long-term investments in your own infrastructure
For sex work in Geneva, there is a simplification. According to the Aspasie guide, the AVS considers sex workers self-employed regardless of where they work, and verifies BTPI registration as proof of activity. This sidesteps the usual “multiple clients” demonstration that other professions must produce. The same logic applies in most other Swiss cantons that regulate the activity.
What self-employed status gets you
- Mandatory contributions to AVS, AI and APG, and the right to corresponding benefits later (retirement, disability, loss of income allowances)
- Recognition for income tax purposes, since your professional expenses become deductible
- An IDE number, your unique business identifier, useful for invoicing and bank accounts
- A clear administrative status if you ever apply for a residence permit, a loan, a mortgage, or family benefits
What it does not cover
- Unemployment insurance: self-employed people are not covered. There is no path to chômage benefits.
- Accident insurance: not automatically included. You must take out private LAA coverage or rely on your health insurance with accident extension.
- Mandatory occupational pension (LPP, second pillar): optional for self-employed people. Recommended but not required.
03Before You Start. What Must Already Be in Place
Three things must be settled before any AVS registration. Trying to skip these creates problems that are hard to fix later.
Right to work in Switzerland Required
Federal immigration law
What is required
- Swiss nationality, OR
- A valid permit allowing self-employment: B with self-employment, C, or B/L UE-AELE for independents
- OR an EU/EFTA online notification under the 90-day rule (limited to short-term work)
Practical consequence
- Without one of these, no compensation fund will accept you and no canton will register your activity
- If you currently hold a salaried EU/EFTA permit, you must change it to a self-employment permit before applying
A valid Swiss postal address Often overlooked
Standard administrative requirement
What is required
- A real address where you actually receive mail in Switzerland
- A trusted person to collect mail when you are away
Practical consequence
- Compensation funds, tax administration, and BTPI all communicate exclusively by paper mail
- Missing a letter can mean missing a deadline, an invoice, or a status decision
Mandatory health insurance (LAMal) From day one
LAMal, Federal health insurance law
What is required
- Anyone domiciled in Switzerland must take out LAMal coverage from the day of arrival
- This applies to permits B, C, L and to cross-border G workers from non-bordering countries
Practical consequence
- Premiums start at around CHF 350 per month, much more in some cantons
- Premiums are owed retroactively to the arrival date even if you affiliate later. Set the money aside immediately
04The Six Steps of Registration
The procedure has six distinct steps, in this order. Do not skip ahead. Each step depends on the previous one being complete.
Step 1. Register with the cantonal authority for sex work
Before any AVS or tax procedure, you must declare your activity to the relevant cantonal police or authority that regulates prostitution. In Geneva, this is the BTPI; in Vaud it is the cantonal commercial police; in Zurich it is the Stadtpolizei; in Bern, Fribourg and other cantons there are equivalent procedures.
This is the registration that gives your activity a recognized starting date. The compensation fund will refer to it.
Step 2. Start your activity in real terms
You cannot apply for self-employed status before you actually start working. You must have at least the first signs of real activity: a profile online, advertising, the first clients, the first revenue. The compensation fund needs evidence that the activity exists, not just an intention.
Compensation funds typically request:
- Proof of advertising or visibility (profile screenshots, ads, links to platforms)
- Bank statements showing incoming amounts
- Receipts or invoices, even basic ones
- Photos of equipment or premises if relevant
For sex work in Geneva, BTPI registration itself counts as one of the strongest pieces of activity evidence. The Aspasie guide makes this explicit. You still benefit from documenting other elements (advertising, bank flows) but the BTPI side simplifies the dossier.
Step 3. Apply to a compensation fund (caisse de compensation)
This is the central step. The compensation fund is the body that:
- Decides whether your activity is recognized as self-employed
- Calculates and collects your AVS, AI and APG contributions
- Manages your individual contribution account (your future rente record)
- Issues your IDE number through the federal system
You apply by filling out an affiliation questionnaire, typically online, on the cantonal fund’s website. The form asks for personal details, the type of activity, an estimated annual income for the current year, your IBAN, and supporting documents.
The fund will examine your file and respond within a few weeks. The answer is either: status of self-employed recognized (with a unique account number) or refused (in which case you remain treated as a salaried person, and you would need to clarify or reapply).
Step 4. Receive your IDE number automatically
The IDE (Identifiant fédéral des entreprises) is your unique business number. It looks like CHE-XXX.XXX.XXX. As soon as the compensation fund recognizes your self-employed status, the Federal Statistical Office automatically generates your IDE and you receive a confirmation letter.
You do not apply for it separately. It comes free, with the AVS recognition. You will use it on invoices, bank account openings, and contracts.
Step 5. Declare your activity to the cantonal tax administration
Once you are recognized as self-employed, you must signal this to the tax administration of your canton of residence. From that point onward, you receive an annual tax declaration, often with a specific form for sex workers.
In Geneva, the tax administration is the Administration fiscale cantonale (AFC). The BTPI also transmits your registration data automatically to the AFC under Art. 9 al. 3 lit. a of the LProst, but you should still confirm the link is established.
Step 6. Pay your provisional contributions every quarter
The compensation fund will issue four invoices per year for provisional contributions, calculated on the income estimate you provided. You pay them quarterly. After each tax year closes, the actual income is communicated by the tax authority and the fund recalculates: you either receive a refund or pay the difference.
05Choosing Your Compensation Fund
Self-employed people in Switzerland have free choice of compensation fund. In practice there are two main routes.
Comparison of compensation fund options for self-employed escorts
| Fund type | Examples | What to know |
|---|---|---|
| Cantonal compensation fund | OCAS (Geneva), CCNC (Neuchâtel), Caisse AVS Vaud, Ausgleichskasse Zürich, Ausgleichskasse Bern | The default for everyone who is not part of a professional association. Fast, used to handling all profession types, has dedicated procedures for sex work in cantons that regulate it. |
| Professional/inter-professional fund | FER, CIFA, Caisse CVCI | Linked to a specific employer association. Useful only if you also belong to that association for other reasons. No specific advantage for sex work. |
For most escorts, the cantonal fund is the right choice. The procedure is well-known to the staff, the path is documented, and your file is processed alongside thousands of others.
Where to apply, by canton
- Geneva: OCAS (ocas.ch)
- Vaud: Caisse AVS Vaud (caisseavsvaud.ch)
- Zurich: SVA Zürich (svazurich.ch)
- Bern: Ausgleichskasse des Kantons Bern (akbern.ch)
- Other cantons: the directory at ahv-iv.ch lists all 26 cantonal funds.
06Contribution Rates 2026. What You Will Actually Pay
For self-employed people, the contribution rate depends on your annual net income (after deduction of professional expenses). The rate is degressive below CHF 60,500 and reaches the maximum at that threshold.
Self-employed contribution rates AVS/AI/APG 2026
| Annual net income (CHF) | Rate AVS/AI/APG | Note |
|---|---|---|
| Under 10,100 | Minimum lump sum | CHF 530 per year minimum, regardless of income (even with zero income) |
| 10,100 to 60,499 | 5.371% to 9.321% (degressive scale) | Rate increases with income on a sliding scale |
| 60,500 and above | 10.0% (full rate) | Maximum rate applies from this threshold upward |
On top of these rates, the compensation fund charges an administrative fee, capped at 5% of the AVS/AI/APG contribution. For most cantons, the actual rate sits between 1.5% and 3% depending on the contribution amount.
Family allowances (allocations familiales)
Self-employed people in Switzerland are also subject to family allowance contributions under the LAFam. The cantonal compensation fund usually handles this in parallel with AVS contributions. Rates vary by canton (typically between 1% and 3% of net income).
A practical example
A self-employed escort in Geneva declares CHF 80,000 of net income (after deductions) for 2026:
- AVS/AI/APG: 10% × 80,000 = CHF 8,000
- Family allowances (Geneva, ~2.45%): ~CHF 1,960
- Administrative fee (~2%): ~CHF 200
- Total social contributions: roughly CHF 10,160 per year, paid in four quarterly invoices
The same person at CHF 30,000 of net income would pay roughly CHF 2,500 to CHF 2,800 total, including the administrative fee and family allowances.
07The Documents Checklist
Compensation funds vary slightly in their requirements, but the standard package includes the items below.
Standard documents for self-employed registration
| Document | What it proves |
|---|---|
| Copy of passport or Swiss ID | Identity |
| AVS number (if you already have one) | Existing record in the social insurance system |
| Copy of valid residence/work permit | Right to work in Switzerland |
| BTPI registration confirmation (Geneva) or equivalent | Activity legally declared to the canton |
| Proof of activity start (advertising, profile, first invoices, bank flows) | Real activity, not just intention |
| Estimated annual income for the current year | Basis for provisional contribution calculation |
| IBAN of your Swiss bank account | For invoice handling and potential refunds |
| Lease or proof of address | Confirmation of your domicile in the canton |
08Common Pitfalls and How to Avoid Them
Underestimating your first year income Frequent
Practical consequence
The pattern
- You declare a low estimated income to keep quarterly contributions small
- Your real income at year-end is much higher
- The compensation fund recalculates and issues an additional invoice
How to avoid it
- If your provisional acomptes are off by more than 25%, late payment interest applies
- Update your estimate during the year if your activity grows
- Set aside roughly 12 to 14% of net income each month as reserve for social contributions and administrative fees
Late affiliation Costly
5-year retroactive limit
The pattern
- You delay AVS registration for months or years
- The fund eventually catches up with you through the BTPI or tax data
- You owe contributions retroactively, plus late interest
How to avoid it
- Apply within the first quarter of starting your activity
- Retroactive contributions are limited to 5 years from the end of the civil year. Anything older is lost, including the right to count those years toward your retirement rente
- Missing years reduce your rente at retirement, sometimes substantially
Confusing salaried with self-employed Risky for sex work
Art. 195 CP
The pattern
- An “agency” or “salon manager” tells you they will employ you and handle your AVS
- They keep a percentage and dictate your hours, prices, or clients
How to avoid it
- Sex work cannot legally be a salaried activity in Switzerland. Anyone who employs you in this sense risks prosecution under Art. 195 of the Swiss Criminal Code
- You must remain self-employed, with full control over your work conditions
- If someone tries to dictate your prices, schedule, or clients, that is a red flag. Talk to Aspasie or another support organization
09Frequently Asked Questions
Do I need to register with the commercial register (Registre du Commerce)?
Not unless your annual turnover exceeds CHF 100,000. Below that threshold, registration is optional. Most independent escorts are below it and do not register. The IDE number you receive through the AVS is fully sufficient for invoicing and tax purposes.
Do I have to charge VAT (TVA)?
No, as long as your turnover stays below CHF 100,000 per year. Above that, you must register with the Federal Tax Administration for VAT (and add the mention “TVA” to your IDE number). Sex work itself is not exempt from VAT in Switzerland: the threshold rule applies normally.
How long does the AVS recognition take?
A few weeks typically, sometimes longer if the file is incomplete. Apply early in your first quarter of activity and respond promptly to any document request. The decision arrives by post.
What happens if my activity is irregular or I take long breaks?
You still owe the minimum AVS contribution of CHF 530 per year as long as you remain registered as self-employed. If you stop working entirely for a year or more, declare the cessation in writing to your compensation fund. If you continue without earning, you may instead be considered a “person without lucrative activity” (PSA), with separate contribution rules based on wealth and other revenue.
Can I have a salaried job and an independent escort activity at the same time?
Yes. The AVS recognizes that a person can be salaried for one activity and self-employed for another. Economic conditions decide. You declare both incomes. If your independent income is below CHF 2,500 per year and you are already covered for AVS through your salaried job, contributions on the independent side are only due on request.
Should I open a separate bank account for my activity?
Strongly recommended. It simplifies the documentation of your activity for the compensation fund and the tax authority, makes accounting easier, and creates a clear separation between professional and personal flows. A standard private bank account is fine. You do not need a “business” account.
What about pension savings (3rd pillar)?
As a self-employed person without a 2nd pillar, you can contribute up to 20% of your net income, capped at CHF 36,288 in 2026, into a 3a (third pillar) plan. These contributions are fully deductible from taxable income, which makes them one of the most efficient tax optimizations available to self-employed escorts.
What if I work in several cantons?
Your compensation fund is determined by your canton of residence (or where the seat of your activity is located if it differs). You can work in other cantons, but you must check each canton’s specific registration rules. The BTPI in Geneva is not the same as the Stadtpolizei in Zurich.
10Support and Resources
The procedures described here are administrative, not punitive. Compensation funds and tax authorities deal with thousands of self-employed registrations every year. Sex work is a recognized profession in Swiss social insurance law. You have the same rights and obligations as any other independent worker.
OCAS Geneva
Geneva cantonal compensation fund. Affiliation and contributions.
Centre d’information AVS/AI
National information center for memos and contribution tables
Aspasie
Geneva. Practical guide for sex workers, AVS questions, accompaniment.
FIZ
Zurich. Counseling and administrative support for sex workers.
Xenia
Bern. Counseling for sex workers.
Federal Statistical Office (OFS)
IDE register, where you can verify or look up your business identifier.
Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or social insurance advice. Rates and procedures evolve every year. Always verify current rules with your cantonal compensation fund, the federal AVS information center, or a specialized organization before making decisions.
Last updated: May 2026
