Teleworking for Cross-Border Employees

Teleworking for Cross-Border Employees Residing in France

Principles

To ensure compliance with the applicable legal framework, particularly the addendum to the double taxation agreement between Switzerland and France, and to avoid any risk of double taxation requiring subsequent steps with tax authorities, the principles defined below must be strictly respected.

• The teleworking rate must not exceed 40% of the annual workload.
• This percentage includes a maximum of 10 days per year of business travel in France for cross-border employees working in the cantons of Vaud, Neuchâtel, and Valais.
• For those working in the canton of Geneva, this maximum of 10 days per year applies to business travel in France and any other country outside Switzerland.
• For cross-border employees working in the cantons of Vaud, Neuchâtel, and Valais and subject to the agreement of April 11, 1983, a quota of 45 days per year applies to business travel outside France as well as days without returning to their residence.

Apart from these specific provisions, the general teleworking regulation (LEX 4.1.8) remains applicable.

Recording Obligations

• Employers are required to transmit annually the teleworking rate of cross-border staff to the cantonal tax administration (this rate includes business travel days in the state of residence).
• Since 2026, a protocol ensures the automated sharing of data between states. The data include the employee’s full name, date of birth, postal code of residence, details of teleworking percentages or the number of teleworking days, and the amount of total gross remuneration paid.
• The first transmission will take place in January 2027 for the 2026 data.

The principles set out above apply to all cross-border workers, except for persons of Swiss nationality and dual nationals.

Agreement of April 11, 1983 on the Taxation of Cross-Border Workers

Under this agreement (applicable notably to the cantons of Vaud, Neuchâtel, and Valais), cross-border employees meeting the required conditions are taxed in France and not subject to withholding tax in Switzerland.

However, if the above principles are not respected, the employer must apply withholding tax. For example, if the maximum teleworking rate is exceeded during the year, taxation at source will apply retroactively from January 1.

Swiss Nationals or Dual Nationals

As EPFL is a public-law employer, Swiss nationals or dual nationals residing in France are not covered by the 1983 agreement. They are therefore subject to withholding tax in Switzerland and are not subject to automatic data exchange.

Teleworking for Cross-Border Employees Residing in Italy

Cross-border employees may perform up to 25% of their working time via teleworking from their home without tax implications.

They therefore remain taxed at source where they work.

A person is considered a cross-border employee if the following three cumulative conditions are met:

• Residence in a municipality within 20 km of the Swiss-Italian border
• Daily return to the main residence (with a tolerance of 45 days per year without returning)
• Salaried work is performed in the border region of the other contracting state (Switzerland or Italy). The following regions are considered border regions:
  • Italy: Lombardy, Piedmont, Aosta Valley, Autonomous Province of Bolzano
  • Switzerland: Cantons of Graubünden, Ticino, and Valais

Teleworking for Cross-Border Employees Residing in Germany

To benefit from cross-border tax status, the employee must return to their residence in Germany daily or at least 60 days per year.

Income is taxed in Germany. The employer withholds tax at source, which is then credited against German tax.

Teleworking is allowed up to 40% of the annual workload, in accordance with regulation (LEX 4.1.8).