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Situation

Living in Germany · Swiss employer · Cross-border employment

Working for a Swiss Employer While Living in Germany

The tax treatment of your salary depends on where you actually work, your residence under the tax treaty and whether you qualify as a frontier worker. Social security, German wage tax withholding and the Swiss employer's obligations require additional, separate reviews.

Legal and technical information as at:

Overview

A Swiss employment contract does not determine the tax treatment on its own

A Swiss payslip does not mean that your entire salary is taxable exclusively in Switzerland. Having a residence or habitual abode in Germany generally gives rise to unlimited German income tax liability. If you have homes in both countries, residence under Article 4 of the tax treaty must also be established.

The following guidance mainly concerns employees who are resident in Germany for treaty purposes and work for a private Swiss employer. Different treaty provisions may apply to certain senior executives, directors' fees, public service employment and specific activities.

The sequence is: first identify the applicable treaty provision, then implement the tax treatment and relief. Social security and the employer's obligations must then be assessed separately.

Take account of the treaty changes applying from 2026

The amending protocol of 21 August 2023 entered into force on 27 November 2025. Most changes apply from 1 January 2026. They include clarifications on regular return, days of non-return and the allocation of employment income. For earlier tax years, the version applicable at the time must be used.

Additional information from the Swiss perspective

Our Swiss tax knowledge section explains cross-border employment, withholding tax and social security from the Swiss perspective.

Explore the Swiss Tax Guide (German)

Working arrangements

Where is the work actually performed?

02

Swiss office and working from home

The proportion of work performed from home can have different consequences for tax and social security.

Review Working from Home
03

Business travel and other countries

Document travel days, places of work and return patterns. Workdays in third countries can affect frontier-worker status.

Review Workdays (German)
04

Working permanently only in Germany

Where work is normally performed exclusively in Germany, the general employment provision generally allocates taxing rights to Germany.

Review Employer Obligations

Income tax

Frontier-worker rules or taxation by place of work?

Article 15a

Frontier workers: Germany taxes the salary

If Article 15a of the treaty applies, employment income is generally taxable in Germany. Provided the required certificate of residence is submitted, Switzerland may withhold no more than 4.5% of gross remuneration.

The Swiss tax permitted under the treaty is credited against German income tax. The 4.5% withholding is not the final overall tax burden.

Article 15

No frontier-worker status: review the places of work

If Article 15a does not apply and the general employment provision governs the income, Switzerland may generally tax remuneration attributable to work performed there. Pay for work performed from home in Germany is generally taxable in Germany.

For work in third countries, additional treaties and their conditions must be reviewed. The Swiss location of the employer does not automatically allocate those days to Switzerland.

183 days

No general tax-free threshold

The 183-day rule does not provide blanket protection from Swiss tax. Several conditions must be satisfied simultaneously.

If the relevant employer is resident in Switzerland, the employer condition in Article 15(2) of the treaty will generally not be met for work performed there. Outside the frontier-worker rules, Switzerland may therefore tax the income from the first Swiss workday.

Exemption, the progression rule and supporting evidence

Swiss employment income qualifying for exemption under Article 24 of the treaty generally remains relevant when determining the German tax rate. For employment income, exemption requires, in particular, the evidence specified in section 50d(8) of the German Income Tax Act (EStG): proof that the assessed foreign tax has been paid or that the other country has waived its taxing right. Other provisions that may restore German taxation must also be reviewed where relevant.

Swiss withholding tax deducted at an excessive rate or contrary to the treaty cannot simply be credited in Germany. A correction or refund must generally be pursued through the Swiss procedure.

Review special roles separately

Article 15(4) of the treaty may apply to certain senior executives, Article 16 to directors' fees and Article 19 to public service employment. Where the treaty gives priority to Article 15a, frontier-worker status must still be assessed. The ordinary workday allocation must not be applied to every role without review.

Frontier workers

Return patterns, days of non-return and certificates

Frontier-worker status is a tax classification under the treaty. A Swiss cross-border commuter permit alone does not establish that the tax conditions are met.

Regular return: at least 20%

Under the protocol provision applicable from 2026, regular return exists where the employee travels from their home to their place of work and back on at least 20% of the agreed workdays in the calendar year. This is a separate condition alongside the review of days of non-return.

More than 60 days of non-return

For full-time employment throughout the calendar year, frontier-worker status is generally lost if there are more than 60 work-related days of non-return. The threshold must be adjusted for employment lasting only part of the year or part-time employment involving fewer workdays. Working fewer hours on every normal workday does not, by itself, reduce the threshold.

Working from home is not a day of non-return

Under the consultation agreement of 15/18 July 2022, working for the entire day at the German home does not count as work-related non-return. The other conditions must nevertheless be met, particularly regular return on actual commuting days.

Provide evidence of residence and non-return

To obtain the limited Swiss withholding rate, the German certificate of residence, usually form Gre-1 or its renewal certificate, must be submitted. If loss of frontier-worker status is claimed, the employer's certificate of days of non-return and the required endorsement by the Swiss tax authority must be obtained.

Business trips may be counted differently from overnight stays

From 2026, the protocol expressly clarifies that one-day business trips within Germany or Switzerland do not count as days of non-return, whereas one-day business trips to third countries do. Simply counting nights spent away from home is therefore insufficient. Where the employee actually does not return, the work-related reason and the applicable rules on whether returning would be reasonable must also be reviewed.

Further Reading: Frontier Workers Living in Germany (German)

Working from home

Working from home in Germany does not automatically require salary allocation

Article 15a

Frontier-worker status continues

If the conditions in Article 15a continue to be met, its taxation system generally remains applicable. The salary is not split using the ordinary ratio of German and Swiss workdays merely because some days are worked from home in Germany.

The social security thresholds of 25% and less than 50% are not tax limits on working from home under Article 15a.

Article 15

Allocation under the general employment provision

Where employment income is allocated under Article 15(1), the protocol applicable from 2026 requires the actual workdays in the relevant period to be used. The employer must certify the workdays and places of work.

A standard denominator of 240 days cannot replace this review. Bonuses, share-based compensation, periods of release from duties and severance payments may require separate allocation by period and type of remuneration.

Workdays

Employment Income by Place of Work

When allocation is required and which supporting documents are needed.

Read the Article (German)

Employer obligations

What must the Swiss employer consider in Germany?

Section 38 EStG

Working from home does not automatically create wage tax withholding obligations

A German wage tax withholding obligation requires a statutory connection, such as a domestic permanent establishment or permanent representative within the meaning of the German Fiscal Code. Special cases include commercial labour leasing and an economic employer in an international assignment.

A Swiss company does not become a domestic employer for German wage tax purposes merely because its employee lives in Germany. If there is no withholding obligation, the employee's German income tax remains payable; it is generally collected through advance payments and the annual assessment.

Social security

German reporting obligations can arise without a permanent establishment

If German social security legislation applies, the Swiss employer must comply with the relevant reporting, contribution and record-keeping obligations. A German subsidiary or permanent establishment for income tax purposes is not required.

In particular, the employer must arrange an establishment number (Betriebsnummer), reporting, contribution calculations and payroll records. Section 28f(1b) of Book IV of the German Social Code (SGB IV) requires employers without a registered office in Germany to appoint an authorised representative based in Germany.

Does the home office create a German permanent establishment?

Under the German tax administration's guidance in paragraph 4 of the AEAO on section 12, an employee's ordinary home office generally does not constitute a permanent establishment of the employer. A key factor is that the employer typically does not have the private premises at its disposal. Reimbursing costs or not providing another workplace is generally insufficient on its own.

The position may differ where the company has actual rights to use the premises, where particular management functions are performed or where the place of management is in Germany. The activities of a permanent representative and a possible dependent-agent permanent establishment must be reviewed separately. Domestic requirements and treaty limitations must be distinguished.

Official Administrative Guidance: AEAO on Section 12 (German)

Implementing wage tax and social security compliance

Registration, payroll and documentation should be clarified before the working arrangement starts or changes.

Read the Employer Guide (German)

Social security

Below 25%, below 50% or mainly working in Germany?

The following overview concerns the usual arrangement of residence in Germany, a Swiss employer, regular work in Switzerland and IT-based telework in Germany. It assumes that the coordination rules in Regulations (EC) No 883/2004 and No 987/2009 apply in relation to Switzerland.

German residence alone does not bring a person within the scope of these rules. In particular, nationality, other employment, self-employment and regular work in additional countries must be considered.

Regular telework in Germany: a simplified overview
Proportion worked in Germany Ordinary allocation Framework Agreement
Below 25% Swiss social security generally applies. No exception under the Telework Framework Agreement is required; the ordinary determination and A1 procedures must still be followed.
25% to below 50% German social security generally applies as the legislation of the country of residence. Swiss coverage is possible on application if all conditions are met.
50% or more German social security generally applies. The Framework Agreement does not apply. An individual exception requires a separate application and is not guaranteed.
Permanently working only in Germany German social security generally applies based on the place of work. The Telework Framework Agreement does not apply.
Application & A1

Swiss coverage must be requested

For the exception covering 25% to below 50% telework, the Swiss employer applies for an A1 certificate through ALPS with its AHV compensation office. The arrangement requires the agreement of the parties involved and applies for a maximum of three years at a time; extensions are possible.

The assessment generally considers the expected working pattern over the next twelve months. Retroactive application is limited under the ordinary procedure, so the application should be made in good time.

Conditions

Other activities may exclude the exception

Habitual additional activities in Germany, such as regular client visits, self-employment alongside the main job or regular work in a third country, may exclude application of the Framework Agreement.

Occasional, spontaneous business trips must be distinguished from such activities. Temporary postings are subject to separate conditions. An A1 certificate determines the applicable social security legislation, not the income tax treatment.

Also review health insurance and the right to choose

Where Swiss social security legislation applies, Swiss health insurance must generally also be considered. Eligible individuals living in Germany may have a right to choose, depending in particular on their nationality. An exemption must generally be requested from the competent authority in the canton of employment within three months. Continuing German health insurance does not replace the formal exemption application.

Staying in Switzerland during the working week

What difference does an additional home in Switzerland make?

A home used during the working week in Switzerland does not automatically end German tax liability. The actual use of both homes, treaty residence, regular return and work-related days of non-return must be reviewed.

Whether accommodation costs and journeys home can be deducted as employment-related expenses depends, among other things, on the conditions for maintaining two households (doppelte Haushaltsführung). It is also necessary to distinguish between employment income taxable in Germany and income exempt under the treaty.

Checklist

Documents for a reliable assessment

Residence and employment contract

Homes, periods of presence, family circumstances, nationality, employer, role and agreed places of work.

Workdays and return patterns

Actual places of work, commuting days, working from home, overnight stays, destinations and reasons for non-return; record holiday and sickness separately.

Salary and special remuneration

Swiss annual salary certificate, monthly payslips, bonuses, share-based compensation and, where relevant, agreements on release from duties or severance payments.

Taxes and certificates

Certificates of residence, employer confirmations, Swiss withholding tax statements, assessments and proof of tax payment.

Social security

A1 certificate, AHV documents, telework agreement, applications for exceptions, health insurance and any exemption decision.

Employer arrangements

German permanent establishments, authority to represent the employer and conclude contracts, use of the home-office premises, registrations and responsible payroll providers.

Coordinate the German tax return and advance payments

Swiss employment income may trigger a German filing obligation and income tax advance payments. Depending on the circumstances, the relevant forms may include Anlage N, N-AUS or an applicable N-Gre form. The Swiss annual salary certificate alone does not replace the German income calculation or the evidence required for treaty relief.

Tax Returns and Reporting Obligations

Further reading

Four reviews need to be coordinated

A working arrangement should be coordinated for both employee and employer. Changes to working from home, the employee's role or business travel may require a fresh review.

  • Residence and frontier-worker status for tax purposes
  • Taxing rights, withholding tax and the German assessment
  • Social security, A1 and health insurance
  • Wage tax withholding, employer reporting and permanent establishment issues

Official sources

Legal provisions and administrative guidance

  1. FTA (ESTV): Germany–Switzerland Tax Treaty and Supplementary Agreements (German) – in particular Articles 4, 15, 15a, 16, 19 and 24.
  2. SIF: Entry into Force and Application Dates of the Amending Protocol (German) .
  3. Amending Protocol of 21 August 2023, Federal Law Gazette 2025 II No 275 (PDF, German) – in particular the new protocol provisions on Articles 15 and 15a.
  4. Consultation Agreement of 15/18 July 2022 (PDF, German) – full days worked from home in the country of residence and days of non-return.
  5. Section 38 EStG (German) – conditions for wage tax withholding; Section 50d(8) EStG (German) – evidence required to exempt foreign employment income.
  6. AEAO on Section 12, in Particular Paragraph 4 (German) – home offices and permanent establishments from the German perspective.
  7. FSIO (BSV): Cross-Border Telework (German) – Swiss coverage and A1 applications through ALPS.
  8. DVKA: Telework and the Framework Agreement (German) – conditions, calculation of the telework proportion and exceptions.
  9. Section 28f SGB IV (German) – payroll records and authorised representatives for employers without a registered office in Germany.
  10. FOPH (BAG): Health Insurance for Cross-Border Commuters (German) – compulsory insurance, the right to choose and exemption applications.

Germany–Switzerland tax advice

Do you live in Germany and work for a Swiss employer?

We review your working arrangement, the treaty allocation of taxing rights, frontier-worker status, Swiss withholding tax and German income tax. Our review also covers working from home, social security and the Swiss employer's potential obligations in Germany.

Have Your Working Arrangement Reviewed