Cross-border commuters from Germany: health insurance, taxes and social security

Health insurance: using the right of option

Cross-border commuters resident in Germany are, in principle, subject to compulsory health insurance in Switzerland. However, on application they can be exempted from this obligation and insure themselves in Germany instead (right of option).

The application must be submitted within a short deadline after starting work in Switzerland, and the decision generally cannot be reversed later. Before deciding, compare the benefits and costs of both options – including for family members.

Taxes: Switzerland–Germany double taxation agreement

A special rule in the double taxation agreement applies to cross-border commuters: taxation takes place in principle in Germany. Switzerland levies a limited withholding tax, which is credited in Germany.

For the limited withholding tax to apply, a certificate of residence from your German tax office is generally required. If you frequently do not return to your place of residence for work reasons, you may lose your cross-border commuter status – this should be checked early on.

Social security and retirement planning

Under the Agreement on the Free Movement of Persons, you are generally covered by social security in the country where you work – that is, in Switzerland (AHV/IV, pension fund, accident insurance). If you also regularly work in Germany, for example from home, this may change.

G permit

To work in Switzerland you need a cross-border commuter permit (G permit). We show you which documents your employer and the authority require.

Frequently asked questions