The taxation of cross-border workers between France and Switzerland is one of the most complex in Europe. The Franco-Swiss agreement of April 11, 1983 and its amendments define the taxation rules based on the canton of employment, creating two distinct regimes.
Geneva regime: cross-border workers employed in Geneva are taxed at source in Switzerland. They can apply for quasi-resident status if at least 90% of their household's worldwide income is taxed in Switzerland, which entitles them to the same deductions as a resident (pillar 3a, actual expenses, etc.). This application is made through the TOU and can generate substantial savings.
Other cantons regime: cross-border workers employed in the cantons of Vaud, Valais, Neuchâtel, Bern, Jura, and Fribourg are taxed in France under the tax residence certificate system. Switzerland pays financial compensation to the canton. These cross-border workers must declare their income in France with a tax credit or exemption with progression.
In both cases, the stakes are significant: choosing the optimal rate schedule, correct declaration in France, avoidance of double taxation, and optimization of cross-border deductions. A mistake can cost several thousand francs.
Our experts master both systems and guide you to maximize your tax advantages while remaining compliant with the legislation of both countries.