Global mobility and HR updates

Taxation

Cross-border commuters – an overview of complexities and tax pitfalls in our neighbouring countries (DE, FR, IT, AT)

This article provides a practical and concise overview of the key considerations regarding the taxation of cross-border commuters from Germany, France, Italy and Austria.

What companies should know

For many Swiss companies, employing cross-border commuters is a routine part of business operations. Depending on their country of residence, different tax rules apply and cross-border home office arrangements can add further complexity.

Who is considered a cross-border commuter?

A typical cross-border commuter works locally for a Swiss company, lives abroad and usually returns to their place of residence every day. If they also work from home in their country of residence, this creates a cross-border employment relationship with additional tax and social security challenges, as well as other aspects (e.g. work permit). 

Tax regulations

In general, the “place of work” principle applies, meaning taxation occurs where the work is actually performed. However, specific cross-border commuter agreements (e.g. with Germany and France)  and provisions in double taxation agreements (DTAs) may override this rule.

Working from home in your country of residence leads to additional tax and social security challenges. Although this article focuses solely on taxation, it is important to note that the “place of work” principle generally remains applicable. Limited home office work may be permitted, but exceeding the allowed threshold can result in the loss of cross-border commuter status and exposure to double taxation.

Cross-border commuter taxation: Country-by-country comparison at a glance

Conclusion

Cross-border home office arrangements are not a free pass. They involve significant tax and social security risks. Cross-border commuter status and the associated tax advantages can quickly be lost if legal requirements are not complied with. Double taxation, additional levies and the potential creation of a permanent establishment abroad are particularly problematic. Companies and employees must therefore carefully adhere to country-specific rules.

Our recommendations

To reduce the risks associated with cross-border home office arrangements and ensure compliance, we recommend the following measures:

• Document home office arrangements in full (including working days per country)
• Observe double taxation agreements (DTAs) and special cross-border commuter regulations
• Check cross-border commuter status and relevant home office limits per country
• Check the tax and social security implications at an early stage, e.g. in the case of permanent home office work or new working models
• Draw up company-specific home office regulations that also clearly govern cross-border work
• Keep certificates of residence and supporting documents up to date, especially for tax returns

Authors: Gordana Muggler, Marius Décaillet, Naomi Lynn Huber, Denis Cerici, Juan Walker

Labour law 

New EU wage transparency requirements from 2026 – what does this mean for Swiss companies?

From June 2026, EU Directive 2023/970 will require companies in the EU to provide comprehensive wage transparency and reporting on equal pay between women and men. Swiss companies with branches or staff in the EU are also affected.

Key content of the directive (from 7 June 2026)

• Disclosure of salary ranges in job advertisements
• Granting employees the right to request salary information for comparable roles and banning confidentiality clauses related to wages
• Reporting obligation for companies with more than 100 employees in an EU country
• Reversing the burden of proof in discrimination cases

Impact on Swiss companies

Directly affected if:

• Subsidiaries or permanent establishments exist in the EU
• Employees residing in the EU 

Indirectly affected if:

• Your company is involved in EU tenders
• Wage transparency becomes part of ESG or compliance audits

Our recommendations for HR and payroll

• Review structures: Which locations/units are affected in the EU?
• Conduct wage analyses:
  • Compare salaries of men and women
  • Identify and document discrepancies greater than 5%
• Adapt HR processes:
  • Disclose salary ranges in EU job advertisements
  • Prepare reporting for each country (technical & content)

Tip: 

Do you operate in several EU countries and are unsure whether your remuneration structures comply with the new EU wage transparency regulations? Forvis Mazars supports you in conducting wage analyses that comply with the law and in establishing transparent criteria in a practical, data protection-compliant and country-specific manner.  

Author: Gordana Muggler

Immigration

New EU Entry-Exit System (EES) from October 2025: What you need to know

On 12 October 2025, the EU will launch its new Entry-Exit System (EES), a digital border control system that electronically records the entry and exit of third-country nationals (persons without EU/EFTA citizenship) during short stays in the Schengen area.  The aim of the EES is to digitally record entries and exits in order to better control the length of stay and increase border security. 

The EES partially replaces the traditional passport stamp and automatically registers entries and exits with the following data: 

• Date and place of entry and exit
• Travel document details
• Biometric data (photo, fingerprints)
• Length of stay to track compliance with the 90 days within 180 days rule

Who does the EES apply to?

The system distinguishes between affected and unaffected groups of peope as follows: 

• Third-country nationals without EU/EFTA citizenship
• Short stays of up to 90 days (visa-free or with a Schengen visa)
• Not affected: EU/EFTA citizens and persons with a valid residence permit from a Schengen country (e.g. B or C permit in Switzerland)

Does the EES also apply to Switzerland?

Yes, as a Schengen member, Switzerland will introduce the EES at the same time as the EU, starting on 12 October 2025, with full implementation expected by April 2026. Swiss airports and border crossings are currently preparing for the technical implementation. 

EES vs. ETIAS 

The EES should not be confused with ETIAS (European Travel Information and Authorisation System). While the EES monitors entries and exits, the ETIAS is an electronic entry authorisation that is expected to become mandatory for visa-free third-country nationals from the third quarter of 2025.

What does this mean for companies?

For international employees or business travellers from third countries (e.g. USA, UK, India) who regularly travel to the Schengen area, the EES will become a mandatory checkpoint. It is essential to monitor the length of stay, as the system will precisely record how long someone remains in the Schengen Area. Violations of the 90/180-day rule can lead to entry refusals.

Our recommendations: 

• Check early on whether your employees are affected by the new system.
• Adjust your travel guidelines accordingly
• Prepare your employees for the introduction of ETIAS in Q3/2026

Author: Gordana Muggler

Social security

13th AHV pension coming in December 2026 – here is the most important information (as of September 2025) 

From December 2026, all AHV pensioners in Switzerland will receive a 13th monthly AHV pension (this additional payment does not apply to IV (disability) or survivors' pensions). The Federal Council is implementing the decision of the electorate, which approved the  popular initiative for an extra monthly pension in March 2024. 

• Eligibility: Only those who are entitled to a regular AHV old-age pension in December will receive the 13th pension.
• No pro-rata payment: Anyone who dies during the year (January–November) is not entitled to the 13th pension.
• First payment: December 2026.

Financing of the 13th AHV pension (as of September 2025); not yet regulated. 

• The Federal Council's preferred solution for financing the 13th AHV pension is currently a 0.7% increase in VAT. The National Council also favours this option and rejects financing via higher payroll taxes. The Council of States, on the other hand, proposes a broader financing approach that includes a two-stage VAT increase, totalling up to 1 percentage point.
• Increase in wage contributions by 0.4 percentage points (0.2% for employees and employers).
• At the same time, the contribution rate for unemployment insurance (ALV) is to be reduced by 0.2 points in order to offset the wage burden.

Conclusion 

The 13th AHV pension will be introduced in 2026,  but as things stand today, no political decision has yet been made on how it will be financed in the long term. A solution is expected in the coming months.

Author: Gordana Muggler

Payroll 

Payroll changes from January 2026 – What Swiss employers need to know.  Key updates relate to withholding tax, wage data reporting, remote work, and social insurance.

New automatic wage data exchange with France (from 2026/2027)

From 2026/2027, Switzerland will gradually introduce automatic and digital wage data exchange with France. This is based on new agreements on the fair taxation of cross-border commuters and teleworkers abroad. 

Timeline

• France: Automatic data exchange planned to start only for income earned from 2026 onwards – first automatic data exchange in 2027 for the 2026 tax year. 
• Legal basis (AIALG): In force from 1 January 2027.

Who is affected?

• Swiss employers with employees residing in France. 
• Employees working remotely from abroad (especially France)
• Companies of all sizes,  including SMEs.

What new measures must companies take?

• Record salary data: including tax ID, withholding tax, social security contributions, home office days.
• Report electronically: annually to the cantonal tax authority (format as specified).
• Inform employees: about the purpose, scope and data transfer.
• Store data: for at least 10 years.

Our recommendations

• Review or create home office agreements for cross-border commuters
• Observe data protection law: Employees have no right to object 
• Adapt payroll and HR systems in good time

Author: Gordana Muggler

CHF 2,500 exemption limit for social insurance: What will change from 2026

Currently, salaries below CHF 2,500 per year per employer are generally not subject to AHV/IV/EO/ALV contributions, unless employees request a pay slip or work in private households or the cultural sector, where contributions are already payable from the first franc.

Starting from 1 January 2026, social security contributions will be extended to small wages. The previous exemption limit of CHF 2,500 per year per employer will no longer apply to other sectors where work is often project-based or short-term.

The following sectors will now be subject to contributions from the first franc earned:  

• Design
• Museums
• Media
• Choirs

Our recommendations: 

• Review affected employment relationships in good time
• Adjust wage systems and processes 
• Inform line managers and budget managers about the changes and their implications

Author: Gordana Muggler
 

Contact us:

In addition to tax issues, we also provide comprehensive support and assistance with all other aspects of cross-border employment, including work permits, social security, labour law, wage payments and equal pay analyses.