Remote work in Switzerland raises complex questions, especially for cross-border commuters. Different tax and social security systems, particularly between Switzerland and France, create additional challenges.
It is important for employers to take a close look at the situation when employees live abroad and work remotely. Above a certain percentage of annual working hours, specific rules apply to ensure that no tax disadvantages arise. What requirements must companies observe—and how can obstacles be avoided?
What are the Swiss regulations on working remotely for cross-border commuters?
Even though there is no explicit right to work remotely in Switzerland, the legislation takes changing forms of work into account. With the increasing prevalence of remote work, companies must comply with certain requirements in order to avoid tax and administrative complications.
The Labour Act (EmpA) applies regardless of the place of work. Among other things, it regulates:
Workforce planning: The workload must be distributed fairly.
Working hours and breaks: Contractual working hours also apply when working remotely.
Overtime and extra work: These must be recorded and compensated.
Technical work equipment: Employers must provide the necessary equipment and tools.
Work-related expenses: Costs incurred at work must be covered.
Taxation of cross-border commuters working remotely: What you need to know
France and Switzerland have introduced a joint regulation on working remotely to avoid double taxation. As long as the proportion of remote work does not exceed 40 percent of annual working hours, there are no tax changes for employers or employees. If this threshold is exceeded, the tax rules of the country of residence apply.
Up to 40 percent working remotely: What are the consequences?
Since January 1, 2023, all taxation remains in Switzerland as long as employees do not work more than 40 percent of their annual working hours remotely. Withholding tax will therefore continue to be levied in Switzerland, even if part of the work is done from France.
This eliminates the international distribution of the tax burden. For employers, this means that taxation works as if the work were performed entirely on site at the company.
💡 Good to know: The agreement does not provide for any exceptions, even for health reasons or due to workplace adjustments. If the 40 percent limit is exceeded, the corresponding remote work days are taxable in France.
More than 40 percent working remotely: Impact on taxation
If the 40 percent limit is exceeded, the portion of the salary corresponding to the days worked remotely is taxable in France from the first day. Only the days worked in Switzerland remain taxable in Switzerland. This makes tax administration more challenging for employers: they must ensure that the tax burden is distributed correctly between the two countries.
Example: If a company allows three days of working remotely per week (≈ 60%), 60% of the salary is taxed in France and 40% in Switzerland.
How are the permitted days of working remotely calculated?
The permissible number of remote work days is based on the number of working days per year. If employees work 240 days per year, an employer can approve up to 96 home office days per calendar year (40% of 240 days). For employees who work 220 days per year, for example, this maximum is reduced to 88 home office days without any tax consequences.
Part-time models and remote work: Special tax rules
For part-time employees, the rules apply in proportion to the level of employment. This means that the proportion of remote work may not exceed 40 percent of the contractually agreed working hours.
Example: An employee working 50 percent of full-time hours can work remotely up to one day per week without any tax implications.
What do employers need to consider when it comes to cross-border commuters working remotely?
Since January 1, 2025, companies have been required to officially confirm the proportion of remote work for all cross-border commuters residing in France. This proof can be recorded either in the employment contract or in a special remote work agreement between employers and employees.
The working days on site must be recorded and confirmed in accordance with the contractual documents. It is crucial that the 40 percent limit is not exceeded. The number of remote work days per week, on the other hand, is not regulated and offers companies and employees corresponding flexibility.
Introduce an efficient system for managing working hours
It is not always easy for companies to comply with Swiss regulations on remote work for cross-border commuters. Bilateral agreements require precise management of remote working days and the maximum number permitted per year.
A specialized tool simplifies these processes, ensures accurate recording—especially for cross-border commuters—and helps to avoid errors.
Conclusion
With specialized software, many processes run automatically. Manual errors become less frequent, and all relevant data is available in real time for the necessary reports. This provides a better overview and significantly reduces the risk of errors in declarations.
