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How hard is it to re-instate my residence permit?

If you de-register, permit is invalidated - You will have to show evidence of employment, to obtain another permit

During job application procedures when asked if I have: valid permits to work in CH....what should I put? Yes or No?

You do not have a valid permit. If you had stayed registered, then by law you must to continue to pay health insurance and tax.

During job application procedures when asked if I need: sponsorship? What should I put? Yes or No?

Yes, it's that evidence of employment, that you require. For EU Citizen, the criteria will be the same as when you obtained the invalidated permit

@CoolAndrea90

As EU citizen you can come here and hunt for a job at any point in time.

For the B, you better get a job offer.

At your job applications, are you eligible, it will be a Yes

Sponsorship No. You pay the fee for the B, not the employer.

You do not require working visa.

Some employers will either pay your fee or reimburse you the fee for B-Permit Application.

Good luck with the job hunt :-)