What tax benefits are there for cross-border commuters?
November 25, 2023 | 60,00 EUR | answered by Thomas Schottmann
Dear tax consultant,
I am Daniel Krüger and I work as a cross-border commuter in Switzerland. In my case, I commute daily from Germany to Switzerland to work there. Due to the special situation as a cross-border commuter, I have been wondering what tax benefits could result for me.
Currently, I pay taxes in both Germany and Switzerland and I feel that I may be at a disadvantage because of this. I would like to know if there are opportunities to optimize my tax burden and what tax advantages I can take advantage of as a cross-border commuter.
I am concerned that I may be paying unnecessarily high taxes and that I may not be taking advantage of tax opportunities available to me as a cross-border commuter. Therefore, it would be very helpful for me if you could give me an overview of the tax benefits for cross-border commuters and show me possible solutions on how I can improve my tax situation.
Thank you in advance for your support.
Sincerely,
Daniel Krüger
Dear Mr. Krüger,
Thank you for your inquiry regarding tax benefits for cross-border commuters in Switzerland. As an expert on this topic, I can provide you with an overview of the tax advantages available to you as a cross-border commuter, as well as possible solutions to optimize your tax situation.
As a cross-border commuter working in Switzerland, you are generally subject to taxation in Switzerland. This means that you must pay income tax in Switzerland. At the same time, you are still liable for taxes in Germany, as that is where you are resident. This can lead to double taxation, as both countries have the right to tax your income.
To avoid double taxation and take advantage of tax benefits as a cross-border commuter, there are various regulations and agreements between Switzerland and Germany. An important factor is the double taxation agreement between the two countries, which ensures that your income is not taxed twice. Under certain conditions, you may also benefit from the so-called 183-day rule, which stipulates that you generally only have to pay taxes in the country where you work for more than 183 days in a year.
In addition, there are special regulations for cross-border commuters that allow you to deduct certain expenses for tax purposes, such as commuter flat rates or meal allowances. Taking advantage of the tax deductibility for health insurance contributions in Switzerland can also reduce your tax burden.
To optimize your tax situation and maximize all tax benefits as a cross-border commuter, I recommend seeking advice from an experienced tax advisor who is familiar with cross-border taxation. Together, you can analyze your individual situation and take measures to minimize your tax burden.
I hope this information is helpful to you and I am available to answer any further questions you may have.
Best regards,
Thomas Schottmann
