Hiring cross-border workers from France: tax by canton

Frontaliers: three tax situations depending on the canton

For cross-border workers from France, it is above all the place of work that determines how you proceed as the employer. There are three situations: the cantons covered by the 1983 cross-border agreement, the canton of Geneva and the other cantons. If your employees work in several cantons or at changing locations, the allocation should be clarified in advance.

Cantons covered by the 1983 agreement: taxation in France, no withholding tax with a valid certificate of residence
Geneva: withholding tax in Switzerland
Other cantons: withholding tax under the general rules of the double taxation agreement

The 1983 agreement: no withholding tax with a certificate of residence

In the cantons of Bern, Solothurn, Basel-Stadt, Basel-Landschaft, Vaud, Valais, Neuchâtel and Jura, cross-border workers from France are taxed in France under the 1983 agreement. The requirement is a daily return to the place of residence in France and a certificate of tax residence (attestation de résidence fiscale) issued by the French tax office.

If the certificate is provided, you do not deduct withholding tax. It generally has to be renewed every year. If it is missing, the canton may require you to deduct withholding tax. There is a financial compensation between the two countries for this rule – it has no direct consequence for you as the employer, but some cantons require information on the cross-border workers you employ.

Geneva: withholding tax and quasi-résident status

Geneva has not joined the 1983 agreement. Cross-border workers from France who work in Geneva are taxed at source in Switzerland. As the employer, you deduct withholding tax at the Geneva rate and settle it with the cantonal tax authority.

Employees whose household income comes almost entirely from Switzerland can apply for a subsequent ordinary assessment as a quasi-résident. Nothing changes for you regarding the deduction, but the employees need complete salary certificates and withholding tax certificates.

Other cantons: withholding tax under the double taxation agreement

If cross-border workers from France work in a canton that is neither covered by the 1983 agreement nor Geneva – such as Zurich or Aargau – the general double taxation agreement applies. The salary is then generally taxed at source in Switzerland, and France avoids double taxation in the country of residence.

Teleworking: separate limits for tax and social security

Switzerland and France have agreed that cross-border workers can work up to 40 per cent of their working time from home in France without any change to the allocation of taxing rights. Above this limit, other rules may apply. Keep a record of home office days.

Separate limits apply to social security: under the general rules, the insurance obligation can shift once 25 per cent or more of the work is done in France. France applies the framework agreement on teleworking, so that on your application the person remains insured in Switzerland with less than 50 per cent home office. Without an application, or with more teleworking, you might have to pay contributions in France and register there as a foreign employer.

Health insurance: LAMal or the French system

Within three months of starting work, cross-border workers from France choose between Swiss health insurance (LAMal) and insurance in the French system. The decision is generally final. If the person chooses the French system, contributions there are based on income.

For you as the employer, this means: inform employees about the deadline early and clarify whether your employees' choice gives rise to any obligations for you.

Social security and unemployment

If your employees work exclusively in Switzerland, they are covered by Swiss social security: AHV/IV/EO, unemployment insurance, accident insurance and – above the entry threshold – the pension fund. If they become fully unemployed, France is generally responsible for benefits. To register there, the employees need certificates of their employment in Switzerland.

Checklist: hiring cross-border workers from France

How to proceed with every new hire:

Clarify the canton of employment and daily return
Apply for the G permit at the migration office
In cantons covered by the 1983 agreement: request the certificate of residence and renew it every year
In Geneva and the other cantons: set the withholding tax rate and settle it
Register with the compensation fund, pension fund, accident insurer and daily sickness allowance insurer
Agree teleworking, record the days and apply for the A1 certificate
Inform employees about the health insurance deadline

Common mistakes with cross-border workers from France

These issues most often lead to back payments:

No withholding tax deducted in a canton covered by the 1983 agreement without a valid certificate
Employees with several places of work assigned to the wrong canton
Teleworking above 40 per cent not spotted
Home office of 25 per cent or more without an application under the framework agreement
Move to Switzerland or within France not updated

How PROFINIO supports you with cross-border workers from France

For every hire, we clarify which rule applies, monitor certificates of residence and teleworking days, and settle withholding tax in Geneva and the other cantons. If you wish, we take over the entire payroll administration. We advise your employees in French on their choice of health insurance and on the documents for their French tax return.

Frequently asked questions

Do I have to deduct withholding tax for cross-border workers from France?

That depends on the canton of employment. In the cantons covered by the 1983 agreement, you do not deduct withholding tax if there is a valid certificate of residence. In Geneva and the other cantons, the salary is generally taxed at source.

Which cantons are covered by the 1983 agreement?

Bern, Solothurn, Basel-Stadt, Basel-Landschaft, Vaud, Valais, Neuchâtel and Jura. Geneva is not covered and levies withholding tax itself.

What is the attestation de résidence fiscale?

With this certificate, the French tax office confirms that your employee is tax resident in France. In the cantons covered by the 1983 agreement, it is the requirement for you not to deduct withholding tax. It is generally renewed every year.

How much home office can cross-border workers from France do?

For tax purposes, teleworking of up to 40 per cent of working time is possible without any change in taxation. For social security, the person remains insured in Switzerland with less than 50 per cent home office on application under the framework agreement. Without an application, France can become responsible from as little as 25 per cent.

What applies to cross-border workers who work in Geneva?

They are taxed at source in Switzerland. You deduct withholding tax at the Geneva rate and settle it with the cantonal tax authority. Under certain conditions, employees can apply for a subsequent assessment as a quasi-résident.

Do we have to register as an employer in France?

Only if employees are subject to French social security law, for example because of a high home office share without an application under the framework agreement. You then have to pay contributions in France. We look at how this can be avoided together with you.

Do you also advise our employees in French?

Yes. PROFINIO advises in French, German, Italian or English – your employees have a dedicated contact person for questions about both countries.

Important note The information on these pages is general and does not replace individual advice. Rules may change; the laws and agreements in force at the time are authoritative.

Hiring cross-border workers from France: tax by canton of employment, social security and teleworking