Cross borders - new Swiss taxation

Finance, Taxes, Banking, Insurance and Retirement
1

Just seen this is coming in from 1st January.

" CROSS-BORDER WORKERS : At the beginning of 2025, a legal basis will come into force in Switzerland for the taxation of cross-border workers’ income when they work from home. The basis will thus be created to allow cross-border workers to be taxed even if they telework abroad. As a rule, income is taxed in the country where you work. If cross-border workers switch to the home office, their income would therefore be taxed in the country where they live. The changes are limited to Switzerland’s five neighbouring countries. Cross-border workers in France can now work from home for up to 40% of their working time, in Italy, the threshold is 25%."

Does that mean they could be taxed in their home country and in Switzerland too if working from home?

2

There are longstanding agreements between CH and FR governing frontaliers. All this does is to change the work from home threshold from 25 to 40% Over 40% they pay taxes to FR, 40% or under they pay taxes to CH. Almost all want to pay Swiss taxes.

The various Cantons in turn contribute to neighbouring FR departments and communes in compensation.

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3

Ah, didn’t know there were such agreements in place though it makes sense there would be.