How can I as a cross-border commuter benefit from tax advantages in the EU?
July 16, 2022 | 50,00 EUR | answered by Selma Rosenblatt
Dear Tax Advisor,
My name is Sven Rapp and I work as a cross-border commuter in a company in Germany. Recently, I have been looking into the topic of tax advantages for cross-border commuters in the EU and wondering how I can benefit from these advantages as a cross-border worker.
My current situation is as follows: I commute daily from my residence in Switzerland to work in Germany. I have heard that cross-border commuters can take advantage of certain tax benefits because they work in an EU country and live in a non-EU country.
I am currently unsure if I am already maximizing all possible tax advantages and if there are more opportunities to save taxes or receive refunds. I am concerned that I might be overlooking something or doing something wrong and as a result, losing money.
Therefore, I would like to know from you what specific steps I can take to benefit from the tax advantages in the EU as a cross-border commuter. Are there specific forms I need to fill out? What evidence do I need to provide? Are there specific deadlines to be aware of? And how can I ensure that I am doing everything correctly and not suffering any financial disadvantages?
I would greatly appreciate it if you could assist me in your online consultation and provide me with specific tips on how to optimize my tax situation as a cross-border commuter.
Thank you in advance for your support.
Sincerely,
Sven Rapp
Dear Sven Rapp,
Thank you for your inquiry regarding tax benefits for cross-border commuters in the EU. As a cross-border commuter living in Switzerland and working in Germany, you can indeed benefit from various tax advantages. It is important that you take advantage of all opportunities to optimize your tax situation and avoid any financial disadvantages.
First and foremost, it is important to know that cross-border commuters usually have to pay taxes in both countries. In your case, you would pay taxes on your income in Germany, as you work there, and in Switzerland as your country of residence. However, there are certain regulations and agreements between the countries to avoid double taxation and grant tax benefits to you as a cross-border commuter.
In order to benefit from tax advantages in the EU as a cross-border commuter, you typically need to meet certain requirements. This includes being able to prove that your center of life is in Switzerland and that you only commute to Germany for work. Additionally, you must register as a cross-border commuter with the tax office and fill out the necessary forms.
In Germany, there is the so-called "cross-border commuter tax law," which is specifically tailored to cross-border commuters. Here, you can claim deductible expenses such as travel costs, meal allowances, and accommodation costs. You can include these in your tax return to reduce your tax burden.
It is advisable to consult a specialized tax advisor to ensure that you fully utilize all opportunities to optimize your tax situation as a cross-border commuter. The tax advisor can help you prepare your tax return, fill out the necessary forms, and inform you about deadlines and evidence requirements.
Overall, it is important that you research thoroughly and take all necessary steps to benefit from tax advantages in the EU as a cross-border commuter. With the support of an experienced tax advisor, you can ensure that you do everything correctly and avoid any financial disadvantages.
I hope this information is helpful to you and I am happy to answer any further questions you may have.
Best regards,
Selma Rosenblatt
Tax Advisor
