Cross-border Workers in Switzerland: Withholding Tax of 4.5% and the 60-Day Rule

Who is considered a cross-border worker?

Under the agreement between Germany and Switzerland, a cross-border worker is defined as someone who resides in one of the two countries, is employed in the other, and regularly returns to their place of residence (Art. 15a of the agreement). The two countries must be different: residence in Germany, place of work in Switzerland, or vice versa. This article addresses the case of residence in Germany. In the reverse case, Switzerland does not count the income toward the tax base but reduces the gross amount of the salary by one-fifth when calculating the tax base.

The result is a split in taxation. Wages are taxed in the country of residence, and the country of employment may levy a limited withholding tax.

How much is the withholding tax, and how is it credited in Germany?

Switzerland may levy a withholding tax of no more than 4.5% on gross wages. This applies only if the employer has a certificate of residence issued by the German tax office; without it, the Swiss tax is not limited to 4.5% (Art. 15a of the Agreement). Germany taxes the wages during the tax assessment and credits the Swiss tax up to 4.5%, treating it as a German withholding tax rather than as a foreign tax. It is already taken into account when determining advance payments.

This credit is contingent upon the wages being included in the tax assessment and no refund having been requested or processed in Switzerland. Anyone who obtains a refund of Swiss taxes there forfeits the credit in Germany.

What does the 60-day rule mean?

Up to 60 workdays in a calendar year during which you do not return to your place of residence for work-related reasons are disregarded. This limit applies to employment throughout the entire calendar year. If it is exceeded, the cross-border commuter regulation no longer applies. Only days on which returning home is not possible or not reasonably expected due to work—such as when an overnight stay at the workplace or on a business trip is required for professional reasons—are counted. Days of illness or accident do not count. Only workdays as defined in the employment contract are counted (Introductory Note to Art. 15a, Marginal Nos. 09–13). There is an agreed-upon, non-binding template for listing travel days: the appendix to Gre-3.

For part-time work with fixed workdays, the limit is reduced on a pro rata basis. The reference figures are 250 standard workdays for a five-day workweek and 300 for a six-day workweek (Introductory Letter, Margin Note 16). Those who work on every standard working day, but only on an hourly basis, retain the full 60 days (Protocol to the Agreement).

What are the rules for working from home?

A workday on which a cross-border worker works full-time at their place of residence is not considered a “non-return day.” The authorities of both countries established this in a consultation agreement dated July 15 and 18, 2022. Days spent working from home therefore do not count toward the 60-day limit. The key factor is “all day”: A day on which you work half the time from home and half the time at your employer’s premises is not covered by this agreement.

The frequency of commuting and how work-from-home quotas affect one’s status are regulated separately by the respective authorities. The Baden-Württemberg tax office’s webpage on cross-border commuters contains information on this topic that will change starting in 2026. This article does not address the implications for social security or labor law.

How does the tax system work in Germany?

The information is based on guidelines issued by the Baden-Württemberg tax offices regarding cross-border commuters to Switzerland. The legal basis applies nationwide.

What happens when cross-border worker status ends?

If this status ends—for example, because the 60-day period has expired—the tax office will no longer issue a certificate of residence. The tax office must be notified immediately when cross-border employment ends so that advance payments can be adjusted. Taxation of wages is then governed by the general rules of the agreement regarding wages. The consequences depend on the individual case and cannot be exhaustively described here; exceptions are listed in the sources.