[EMEA] Switzerland and France agree updated cross-border telework tax deal

Swiss and French negotiators have agreed on a new deal that sets clear rules for taxing the growing number of cross-border workers who spend time working from home. The deal, announced in Bern on May 1, confirms the permanent arrangement that took effect at the start of the year and replaces the temporary pandemic-era rules, VisaHQ reports.

Frontier workers can now spend up to 40 per cent of their working time teleworking in their country of residence, usually France, while continuing to pay income tax in Switzerland. If they go over that limit, their income is taxed in France instead, with salary data reported through a shared system. 

For companies around Lake Geneva and the Jura, this reportedly brings welcome clarity and reduces the risk of surprise tax bills.

The rules, however, are now stricter. To remain compliant, employers must provide proof of social security coverage, keep detailed records of where employees work each day, and alert French authorities as workers near the 40 per cent threshold. Many HR systems are being updated to automatically track and share this data. 

The agreement is helpful for Swiss industries that rely on French commuters, as it allows up to two days of home working without losing the benefits of Swiss taxation. This helps companies stay competitive and lets workers keep higher take-home pay, while cantons like Geneva and Vaud protect significant tax revenue.

There are still risks if the limit is exceeded. The 40 per cent cap applies over the whole year, so even a long stretch of working from France could trigger full French taxation on home-working income. VisaHQ advises employers to monitor this closely and keep staff informed, especially during busy holiday periods. Both countries plan to review how the system works after a year, but for now, cross-border workers and their employers have a clearer and more stable set of rules.

Source: VisaHQ

Swiss and French negotiators have agreed on a new deal that sets clear rules for taxing the growing number of cross-border workers who spend time working from home. The deal, announced in Bern on May 1, confirms the permanent arrangement that took effect at the start of the year and replaces the temporary pandemic-era rules, VisaHQ reports.

Frontier workers can now spend up to 40 per cent of their working time teleworking in their country of residence, usually France, while continuing to pay income tax in Switzerland. If they go over that limit, their income is taxed in France instead, with salary data reported through a shared system. 

For companies around Lake Geneva and the Jura, this reportedly brings welcome clarity and reduces the risk of surprise tax bills.

The rules, however, are now stricter. To remain compliant, employers must provide proof of social security coverage, keep detailed records of where employees work each day, and alert French authorities as workers near the 40 per cent threshold. Many HR systems are being updated to automatically track and share this data. 

The agreement is helpful for Swiss industries that rely on French commuters, as it allows up to two days of home working without losing the benefits of Swiss taxation. This helps companies stay competitive and lets workers keep higher take-home pay, while cantons like Geneva and Vaud protect significant tax revenue.

There are still risks if the limit is exceeded. The 40 per cent cap applies over the whole year, so even a long stretch of working from France could trigger full French taxation on home-working income. VisaHQ advises employers to monitor this closely and keep staff informed, especially during busy holiday periods. Both countries plan to review how the system works after a year, but for now, cross-border workers and their employers have a clearer and more stable set of rules.

Source: VisaHQ