Inform you about 2023 news from our Swiss cross-border workers
The year 2023 is a year of significant changes for Swiss cross-border workers. While Switzerland continues to be a magnet for cross-border workers due to its attractive salaries and high quality of life, new trends and regulations have emerged over the year, impacting the lives of these cross-border workers. In this article, DECORDIER immobilier explores for you the major news of 2023 for Swiss cross-border workers.
One of the most significant trends in 2023 is the widespread adoption of remote working. The COVID-19 pandemic has accelerated this transition, and many Swiss companies continue to allow their employees to work from home, even after health restrictions are lifted. This has significant implications for cross-border commuters, as they can now consider living further from Switzerland, thereby reducing their housing costs while still enjoying the benefits of the Swiss job market.
The new social security rules applicable since July 1, 2023, now 2 regimes will apply.
1. New agreement extends teleworking possibilities, some EU/EFTA countries have decided to conclude an agreement allowing workers to carry out up to 49.9% of their activity from their country of residence without affecting the rules social security. The worker is subject to social security at the employer's headquarters as long as he does not telework more than 49.9% from his country of residence. He will remain affiliated to social security in Switzerland.
If he exceeds this ceiling, he will be subject to social security in his country of residence, for all his activity, even that carried out from Switzerland. The application of the agreement will not be automatic and the parties to the employment contract must require an A1 certificate from the Swiss compensation fund.
2. EU/EFTA countries that do not sign the new agreement will be subject to the ordinary rules that were applicable before the pandemic; Employees are subject to social security in the country where their head office is located. They can work from their country of residence, less than 25% of their activity rate without consequences. If the 25% ceiling is reached or exceeded, employees are then subject to social security in their country of residence, for their entire activity. A worker who resides in France and who works mainly in Switzerland (State where his employer is based) will have the possibility of teleworking from France for up to 24.9% of his total working time, while being affiliated to Swiss social security. If this limit is exceeded, all of his activity, including that carried out from Switzerland, will be subject to French social security. All EU/EFTA countries that have not signed the new agreement will be subject to these rules. For the moment, neither France nor Italy have expressed their intention to sign it.
Regarding taxes, the agreement of December 22, 2022 between Switzerland and France allows cross-border workers to practice teleworking for up to 40% of working time without the State of income tax modifying its income rate. Taxation is a major concern for Swiss cross-border workers. In 2023, several changes were made to the tax regimes for cross-border workers. Some Swiss cantons have adjusted their tax rates for cross-border workers, while others have introduced tax incentives to encourage their presence. It is essential that cross-border workers stay informed of these changes to optimize their financial situation.
Mobility is a key aspect of life for Swiss cross-border workers, but it has been disrupted in 2023 due to various factors. Problems with public transport, such as strikes and breakdowns, have affected the punctuality of cross-border commuters. Additionally, Brexit-related border issues have created additional challenges for British nationals working in Switzerland. Effective mobility management has become an essential skill for cross-border commuters.
The cost of living in Switzerland remains high, and this has a direct impact on cross-border workers. In 2023, some border regions saw an increase in property prices due to increasing demand from cross-border commuters seeking more affordable housing close to Switzerland. It is for this reason that our Lake Geneva region does not suffer from the downward cycle of the real estate market observed in many cities in France. The towns of Thonon and Evian-Les-Bains maintain a dynamic market as observed by our real estate professionals from our DECORDIER immobilier agencies in Thonon and Evian-Les-Bains, specializing in the Chablais sector. You can find our article on “How to find accommodation while living on the border in Thonon and Evian les Bains?” " HERE .
Border controls continued to evolve in 2023. Bilateral agreements between Switzerland and the European Union were reviewed, leading to adjustments in border management. Cross-border commuters should stay informed about visa requirements, work permits and other regulations, as these can change quickly.
In conclusion, 2023 was a year of challenges and opportunities for Swiss cross-border workers. As teleworking becomes more and more common, taxation, mobility and cost of living remain major concerns. Effective management of these aspects is essential to take full advantage of the advantages offered by the Swiss job market while maintaining a healthy life balance. Swiss cross-border workers should continue to closely monitor regulatory and economic developments to adapt to changes and make informed decisions for their professional and personal future.
DECORDIER immobilier agencies can help you with your real estate project:
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
www.decordier-immobilier.com