What do I need to consider if I am working as a cross-border commuter and also freelancing?
November 22, 2022 | 50,00 EUR | answered by Paula Bauer
Dear tax consultant,
I am Dora Freudenberger and work as a cross-border commuter in Switzerland. In addition to my regular employment, I would like to start working as a freelancer. However, I have concerns that this could have tax implications and therefore would like to gather information in advance on what I need to consider.
Currently, I work in Switzerland as an employee in a company and commute regularly from my residence in Germany to work. I mainly derive my income from this employment. Now, I have the opportunity to offer my professional skills independently and work as a freelancer. These would be projects that I would undertake in addition to my regular job.
My concerns are that I do not know how my freelance work would affect my tax situation as a cross-border commuter. I fear that this could lead to difficulties and therefore want to gather all necessary information in advance to avoid potential problems.
Could you please explain to me what I need to consider if I work as a freelancer in addition to being a cross-border commuter? Are there any specific regulations or requirements that I need to be aware of? How will my freelance work affect my tax returns in Germany and Switzerland? What steps do I need to take to properly register and pay taxes for my freelance work?
Thank you in advance for your support and advice.
Best regards,
Dora Freudenberger
Dear Mrs. Freudenberger,
Thank you for your inquiry regarding your freelance work as a cross-border commuter in Switzerland. It is understandable that you are concerned about possible tax implications and would like to gather all necessary information in advance to avoid any problems.
First of all, it is important to know that cross-border commuters are generally taxable in the country where they work. This means that as a cross-border commuter in Switzerland, you must pay taxes on your income from your employment there. However, since you reside in Germany, you are also subject to taxation in Germany. There is a double taxation agreement between Germany and Switzerland to avoid being taxed twice.
If you now wish to engage in freelance work as well, you must be aware that this income must also be taxed in both Switzerland and Germany. Typically, you must declare and pay taxes on your freelance income in Germany. There are various regulations and requirements to consider, especially regarding the registration and taxation of your freelance activity.
To properly register and pay taxes on your freelance activity, you must register as a freelancer in Germany and declare your income in your tax return. It may also be necessary for you to register and pay taxes on your freelance activity in Switzerland, depending on the nature and scope of your work.
It is recommended to consult a tax advisor to clarify all details and specific regulations for your situation. A tax advisor can provide comprehensive advice and help you correctly manage your tax situation as a cross-border commuter with freelance work.
I hope this information is helpful to you and I am available for further questions.
Best regards,
Paula Bauer, Tax Advisor
