Employment & Social Security Between Germany and Switzerland

Cross-Border Commuters

The Special Rules under Article 15a

For German residents who regularly work in Switzerland and return to their home, the commuter provisions in Article 15a of the treaty may result in different tax treatment from the general employment provisions.

Two questions are particularly relevant: how employment income is taxed under Article 15a, and how days without returning home affect commuter status.

Germany Taxes the Salary; Switzerland May Withhold up to 4.5%

For a qualifying commuter resident in Germany, Germany taxes the employment income. Switzerland may levy withholding tax of no more than 4.5% of gross remuneration when the required residence certificate is supplied. The Swiss tax permitted under Article 15a is credited against German income tax. The 4.5% deduction is therefore not the employee's final overall income tax burden.

Provide the Swiss employer with the applicable residence certificate issued by the German tax office, generally Form Gre-1 or its renewal. Excess Swiss withholding is not automatically creditable in Germany; a Swiss correction or refund may be necessary.

Regular Commuting and Work-Related Non-Return Days

From 2026, protocol paragraph 5(b) defines regular return by reference to travel from the residence to the workplace and back on at least 20% of the agreed workdays in the calendar year. Occasional attendance in Switzerland does not automatically satisfy this test.

The separate non-return test must also be met. For full-year, full-time employment, commuter status is lost if work-related non-return days exceed 60. A lower threshold may apply to employment for only part of the year or part-time employment spread over fewer days. Private overnight stays are not qualifying work-related non-return days.

Keep a dated work and travel calendar, evidence of the professional reasons for overnight stays, and the relevant employer certificates, including Form Gre-3 where required. A Swiss G permit does not itself establish commuter status under the tax treaty.

Social Security

German or Swiss Social Security?

Social security coverage does not automatically follow the allocation of taxing rights. Relevant factors include the country of employment, the country of residence, work in several countries, the extent of work from home and any temporary assignment.

Where the EU–Switzerland coordination rules apply, particularly to Swiss and EU nationals, Regulations (EC) 883/2004 and 987/2009 generally assign an employee to one country's legislation. Other nationalities require a separate check of personal scope and any applicable bilateral agreement. Residence in Germany alone does not make the EU–Switzerland rules applicable to everyone.

Germany and Switzerland have participated in the framework since July 1, 2023. It requires the agreement of employer and employee and an application; continuation of Swiss coverage is not automatic. Regular non-telework activity in Germany, habitual work in a third country or self-employment can put the arrangement outside its scope.

For Swiss coverage, the Swiss employer applies through its AHV compensation office using ALPS. Approval and the A1 certificate may cover up to three years, with renewal possible. The usual retrospective window under the framework is at most three months, subject to its conditions. The planned working pattern is generally assessed over the next twelve months.

Swiss Employers

German Employer Obligations in Cross-Border Employment

Where an employee living in Germany works for a Swiss employer, German wage tax, social security and other employer obligations may become relevant alongside the employee’s personal income tax.

The situation page Swiss Employer, German Residence brings these issues together. The compliance section explains the related tax return requirements.

German income tax liability does not automatically mean that every Swiss employer must withhold German wage tax. Section 38 EStG requires a separate assessment, including a German establishment or permanent representative, commercial labour leasing, or a German host company that economically bears, or should bear, remuneration in an international assignment. Without wage withholding, the employee may still owe German advance payments and annual income tax.

If German social security legislation applies, a Swiss employer may have German registration and contribution obligations even without a German tax establishment. These obligations require their own review.

Assignments

Assignments from Switzerland to Germany

A temporary assignment from Switzerland to Germany can involve employment taxation, employer obligations, social security and the treatment of variable remuneration. These issues should be considered together.

For a Swiss treaty resident temporarily working in Germany, the Article 15(2) exception requires all three conditions: presence in Germany of no more than 183 days in the relevant calendar year, remuneration paid by or on behalf of an employer not resident in Germany, and remuneration not borne by the employer's German permanent establishment. The economic employer and cost allocation must be examined. A short assignment alone does not establish exemption.

A qualifying posting under Article 12 of Regulation 883/2004 can preserve the sending state's social security legislation for up to 24 months, subject to conditions including a continuing employment relationship and the rule against replacing another posted worker. The A1 certificate confirms the applicable social security legislation; it does not establish an income tax exemption.

Related Topics

Further Topics Relevant to Cross-Border Employment

Documentation

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