Germany–Switzerland
Topic 08Tax Returns & Reporting Obligations between Germany and Switzerland
If you are tax resident in Germany and have income or other tax-relevant circumstances in Switzerland, you will often need to include them in your German income tax return. This topic focuses on reporting, treaty relief methods, foreign tax credits, tax rate effects, supporting documents and the year of relocation. The tax treatment of employment income, investments, real estate, retirement benefits and businesses is covered in the relevant specialist topics.
Overview
What must be included in a German tax return when Switzerland is involved?
If you are tax resident in Germany, foreign income is generally also included in the German tax assessment.
Whether and to what extent Germany actually taxes that income is then determined by German tax law and the Germany–Switzerland double taxation agreement.
Preparing the tax return therefore requires more than identifying the type of income. It is also necessary to determine whether Germany taxes it, grants a credit for Swiss tax, exempts the income or takes it into account only when calculating the tax rate under the progression proviso.
This topic from the Swiss perspective
TaxRep Switzerland covers German income and assets, focusing on Swiss tax reporting, international tax allocation and withholding tax relief.
Assessment Framework
Four levels of tax reporting assessment
Figures from a Swiss tax return, salary certificate or tax statement cannot simply be copied into a German tax return.
Tax residence
For which period does unlimited German tax liability apply, and where are you resident for tax treaty purposes?
Tax classification
Classify the income under German law and the tax treaty, using the relevant specialist analysis.
Treaty relief method
Does Germany tax the income, grant a credit for Swiss tax or exempt the income?
Reporting
Identify the German tax return schedule, the tax amount, any tax rate effect and the supporting documents required.
Establish the tax treatment before preparing the return
Whether Swiss employment income, income from real estate or an occupational pension fund benefit is taxable in Germany is assessed in the relevant specialist topic. The next step is to reflect that treatment correctly in the German tax return.
Reporting
From tax classification to the German tax return
Different tax return schedules, additional disclosures and Swiss supporting documents may be required, depending on the circumstances.
Employment income
Once the application of Article 15 or Article 15a of the tax treaty, working days and withholding tax has been established, the employment income is reported in the German tax return.
Investment income
After dividends, interest, fund income and gains on disposals have been determined for tax purposes, they are reported together with the relevant foreign tax.
Real estate
After calculating income under German rules and allocating taxing rights under the treaty, it is necessary to determine which amounts must be reported and, where applicable, taken into account under the progression proviso.
AHV & retirement benefits
Each retirement benefit is first classified for tax purposes and then reported in the appropriate German tax return schedule.
Shareholdings & businesses
Dividends, disposals, managing director remuneration and business income may require different reporting procedures.
Foreign tax
Refundable Swiss tax must be distinguished from final Swiss tax and from the amount eligible for a German foreign tax credit.
Common Questions
Anlage AUS, the progression proviso, relocation years and supporting documents
When is Anlage AUS required?
Certain foreign income and foreign taxes require additional disclosures about treaty treatment and foreign tax credits in Anlage AUS, the German foreign income schedule.
What does the progression proviso mean?
Certain Swiss income that is exempt from German tax may still affect the German tax rate applied to other income.
How is a credit for Swiss tax claimed?
The first step is to determine whether Switzerland may retain the tax under the treaty or whether a refund can be claimed.
Which Swiss documents are required?
Depending on the case, these may include salary certificates, withholding tax statements, bank documents, tax assessments, pension documents and real estate records.
What applies in the year of moving from Switzerland to Germany?
The start of German tax liability, treaty residence and Swiss income before and after the move must be allocated to the relevant periods.
What applies in the year of moving from Germany to Switzerland?
The end of unlimited German tax liability, continuing German income, tax rate effects and other consequences of departure must be considered together.
Do Swiss bank accounts require separate reporting?
For German income tax purposes, the main requirement is generally to report taxable income from those accounts correctly. Further reporting obligations depend on the specific circumstances.
What if earlier tax returns contain errors?
Swiss income or other circumstances that were omitted or treated incorrectly should be reviewed in light of the facts and corrected where required.
Common Cases
Situations involving German filing obligations
The following situations commonly affect the German tax return. Each guide explains the underlying tax treatment and the issues relevant to your circumstances.
Cross-border commuter resident in Germany
Swiss employment income, withholding tax, cross-border commuter status, working days and German taxation.
View situationMoving from Switzerland to Germany
The start of German tax liability, the year of arrival and continuing Swiss assets and income.
View situationSwiss securities portfolio while resident in Germany
Swiss investments, dividends, funds, gains on disposals and withholding tax.
View situationSwiss real estate while resident in Germany
Rental income, Swiss real estate taxation, treaty treatment and German tax consequences.
View situationSwiss occupational pension fund while resident in Germany
Pension and lump-sum benefits, German tax classification, the tax treaty and Swiss withholding tax.
View situationSwiss company while resident in Germany
Shareholdings, dividends, managing director and board roles, and the place of effective management.
View situationConnect your circumstances with the relevant tax analysis
These guides explain the tax treatment of cross-border employment, securities portfolios, real estate, retirement benefits and businesses. Use them to establish the treatment that must then be reflected in your German tax return.
In-depth Articles
Tax returns, treaty relief methods and compliance
These articles focus on German tax reporting, foreign tax credits, tax rate effects, relocation years and documentation.
Swiss income in the German tax return
An overview of reporting, treaty relief methods, German tax return schedules, foreign taxes and supporting documents.
Read articleAnlage AUS for income from Switzerland
Foreign income, Swiss taxes, treaty tax credits and the information required in the German tax return.
Read articleThe progression proviso for Swiss income
When Swiss income that is exempt from German tax nevertheless affects the German income tax rate.
Read articleThe tax return for the year of moving from Switzerland to Germany
The start of German tax liability, allocation of income between periods, changes in treaty residence and tax rate effects.
Read articleThe tax return for the year of moving from Germany to Switzerland
The end of unlimited German tax liability, income before and after departure, tax rate effects and continuing German income.
Read articleChecklist for Germany–Switzerland tax returns
Swiss documents for employment income, investments, real estate, retirement benefits, shareholdings and foreign taxes.
Read articleFind the detailed tax treatment for each type of income
The specialist topics explain how Germany and Switzerland tax investments, employment income, real estate, retirement benefits and company interests. This analysis provides the basis for preparing your tax return.
- Portfolios & funds → Investments & Withholding Taxes
- Swiss withholding tax → Investments & Withholding Taxes
- Employment income → Employment & Social Security
- Property income → Real Estate
- AHV & pension funds → Retirement Provision & Pensions
- Companies → Businesses & Shareholdings
Specialist Tax Topics
Explore the tax treatment relevant to your circumstances
The following topics provide detailed analysis of how your income and circumstances are taxed, alongside the reporting guidance on this page.
Residence & Relocation
Residence, habitual abode, treaty residence, moving to Germany, leaving Germany and continuing tax liability.
Explore topicEmployment & Social Security
Cross-border commuters, Swiss employers, working from home, working days, business travel and social security.
Explore topicInvestments & Withholding Taxes
Securities portfolios, shares, dividends, funds, interest, gains on disposals and Swiss withholding tax.
Explore topicBusinesses & Shareholdings
Swiss AGs and GmbHs, shareholdings, dividends, managing director roles and effective management.
Explore topicReal Estate
Swiss real estate, rental income, sales, financing and treaty treatment.
Explore topicRetirement Provision & Pensions
AHV, occupational pension funds, vested benefits, Pillar 3a, pension payments and lump-sum benefits.
Explore topicGermany–Switzerland Tax Advice
Do you need to report Swiss income in Germany?
We coordinate the underlying tax treatment with German reporting requirements, treaty relief methods, foreign tax credits, tax rate effects and the Swiss supporting documents required.
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