Working from home has increased significantly in recent years and presents new challenges for cross-border employment relationships. This is particularly significant for Switzerland in relation to France, as more than half of the cross-border workers employed in Switzerland come from France.
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Working from home has increased significantly in recent years and presents new challenges for cross-border employment relationships. This is particularly significant for Switzerland in relation to France, as more than half of the cross-border workers employed in Switzerland come from France. As of January 1, 2023, French cross-border workers may work up to 40% of their working hours from home in France without losing their cross-border worker tax status. Additionally, starting January 1, 2025, new documentation requirements will apply to employers who hire French cross-border workers.
Under domestic law and the Double Taxation Agreement between Switzerland and France (DTA CH–FR), income is generally taxed according to the place-of-work principle (Art. 17(1) DTA CH–FR). However, for French cross-border commuters whose employers are based in one of the eight border cantons—Bern, Basel-Landschaft, Basel-Stadt, Jura, Neuchâtel, Solothurn, Vaud, and Valais—a special provision applies based on a 1983 agreement: Provided they return to their residence in France on a daily basis, their income is taxed exclusively in France.
Up to 45 non-return days are permitted without jeopardizing cross-border worker status. In addition, the threshold of 10 days per year for temporary assignments in the country of residence or third countries must be observed. Up to a maximum of 40% of working hours per calendar year may be worked from a home office in the country of residence. If this limit is exceeded, taxation is applied on a pro-rata basis according to the principle of the place of work.
Employers now have comprehensive reporting, documentation, and withholding obligations under the withholding tax system. Since the beginning of 2025, new requirements for recording work-from-home days have been in effect. Timely and correct implementation of these regulations is crucial, especially since failures to comply can result in double taxation for the employee and/or liability for the employer.
Working from home has become an integral part of today’s working world and has presented new challenges for tax law with regard to cross-border employment relationships. For cross-border commuters, working from home can lead to a shift in tax jurisdiction from the country of employment to the country of residence. As a net importer of labor, Switzerland is particularly affected by the implications of this development.
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