Cross-Border Commuters between Switzerland and Germany: Key Tax Rules

Introduction

This article deals with the qualification of cross-border commuters according to the DTA Switzerland-Germany. In 2025, around 68,000 cross-border commuters residing in Germany worked in Switzerland, showing the relevance of this article.

Cross-border commuter («Grenzgänger»; hereinafter “CBC”)

For the assessment of the allocation of employment income, a hierarchical procedure must be followed. The cross-border commuter regulation (DBA D-CH Art.15a) as lex specialis takes precedence over the following provisions:

Cross-border commuter (DTA Art. 15a)
- Executive Employee (DTA Art. 15, para. 4)
  - Regular Employee (DTA Art. 15 para. 1 and 2)

In the case of CBCs, the right of taxation of the country of employment is limited to 4.5% of the gross salary, while the country of residence has an overarching right of taxation. In order for an individual to qualify as CBC, the following criteria must be met cumulatively:

Residency in one contracting state and place of work in the other contracting state, and;
Employment (no self-employment), and;
Return per working session as well as on a regular basis, and;
Not more than 60 non-return days.

A return from a work assignment is not limited to two border crossings per working day. It also includes the outward journey at the beginning and the return journey at the end of a multi-day assignment where a daily return is not possible due to operational requirements. This applies, for example, to shift workers, hospital staff, and employees on call.

Returns are qualified being on a regular basis, if the employee travels from the place of residency to the place of work and back on at least 20% of the agreed working days. What seems as restriction of the CBC concept, especially due to the wording is in fact regarded as an extension of it and shall solely relate to part-time employees. That leads to the understanding, that older regulations are still valid, i.e.:

Regularity does not require a minimum of amount of cross bordings per month or week;
There is no minimum amout of workdays in the contracting state of the place of employment required.

Non-return days can only happen on workdays. As such qualify:

Contractual workdays, i.e. usually Monday to Friday;
Business trips over weekends and public holidays, provided that the employer either bears the travel expenses or orders them.

Holidays and sickness days due to illness or accident do not qualify as workdays.

A non-return day may either be due to non-reasonablness or professional reasons.

A recent bilateral agreement that entered into force as per 1.1.2026 and being binding for both Germany and Switzerland, states that non-reasonableness is given, if either the shortest distance by car is more than 100 km per way or if the fastest connection by public transport is more than 1.5 hours per per way. The predominant means of transport vehicle used is decisive.

If there is an effective regular return even though it is not within the range of reasonableness, the actual circumstances are decisive.

As non-return days due to professional reasons should qualify the following:

Multi-day business trips with overnight stays, regardless of where they take place;
One-day business in third countries, regardless of whether the cross-border worker returns to his or her place of residence or not;
Return journey prevented by force majeure.

The following should not be considered as professional reasons days:

Home office days in the country of residence;
Private-related non-return days;
One-day business trips in the contracting states DE and CH;
Multi-day work assignment, for which a return is not possible because the work is carried out over several days due to operational circumstances, e.g. shift workers, hospital staff, on-call duty.

The 60 days are meant to be per calendar year and in full-time employment. If an individual has not been employed in the other state during the entire calendar year, five days shall be entered for each full month and one day for each full week of employment. Home office days do not lead to a reduction of the amount of non-return days.

Our support

Whether an employee qualifies as Cross-Border Commuter or not is highly relevant, especially when in relation to the clarifications of the Executive Employee regulation in Art. 15 para. 4 of the DTA Switzerland-Germany. We are happy to support you and your employees in this regard.