Early next year I (Dutch national) might move to Switzerland to work for our local Swiss branch of my Dutch employer. In that case I will be in Switzerland during the week, but spend most weekends at home in the Netherlands, as that's where my partner will stay.

My employer is indifferent whether to contract me through the Dutch office or through the Swiss office, but they don't really know whether this is actually allowed. To me being contracted by the Swiss office sounds attractive, because of the low taxes on income, relative to the Netherlands.

I have a few questions in this respect, hopefully someone will be able to point me in the right direction :

- Are there any specific conditions (permit wise) to be officially contracted by the Swiss office? I.e. do I need to register at the local municipality, are there minimum income requirements, etc? I will probably earn around 100K (excluding bonus and expenses for housing and transportation).

- Are expenses paid by the Swiss employer for housing and transportation regarded as income in Switzerland, or would these in any other way affect my marginal tax rate?

- The Dutch tax service will view me as a Dutch resident ("centre of my social life") and will therefore levy taxes on e.g. my wealth (we have wealth-based taxes). There is a tax treaty between the Dutch and Swiss government that prevents double taxation on income. I know this is quite a specific question, but perhaps someone has experience with this specific situation: will the Dutch government levy additional taxes on my income taxed at source in Switzerland, to make up for the difference in marginal tax rate between both countries (it will be my only source of income)? I called their "foreign taxation helpdesk" but they didn't really know.

Thanks Other suggestion are, of course, very welcome as well!

Well, if you only will work during the week here, why don't you continue to stay on the payroll of the Dutch company? Your employer is indifferent on you being on the payroll in CH or NL. The Dutch company only has to pay the appartment in CH (or the Swiss company pays the rental costs of the appartment for you and it reinvoices / recharges the rental costs to the Dutch company).

Switzerland and NL both are members of Schengen, so you can travel in and out of Switzerland and NL freely.

I think I can see why you'd rather be taxed in Switzerland! Dutch taxes are quite high.

A fair question to ask the employer: Will your income be adjusted for the Dutch vs. Swiss standard of living and living expenses? Despite the low taxes, costs are quite high here, as opposed to Holland where costs are quite low.

e.g. A Dutch salary of 100,000 Euro compared to a Swiss salary of 125,000 CHF does not make the same disposable income in the end.

Could you just be a Dutch employee and commute to Switzerland on the company's dime?

Your employer will need to obtain a Swiss work permit for you which is also a residence permit & the Swiss authorities will expect your employer to deduct Swiss tax from your Swiss salary payments.
If your employer pays you in NL & does not pay Swiss tax here then I expect they will have a difficult discussion with the Swiss tax authorities. Best for you to stay out of that discussion & say it is between your employer & the Swiss.

If the Dutch tax service views you as a Dutch resident then they will want tax from you.
I am not a tax lawyer but if your employer pays you here & deducts Swiss tax then I suppose it would be as follows but this is just a guess as I know nothing about Dutch tax laws.
Suppose you are paid 100 & Dutch tax service wants 50
But your employer already paid 30 to the Swiss tax authorities; then due to the double tax agreement the Dutch will want 50 - 30 = 20 from you.

One way or another, as you stated, you will continue to be taxed in NL, as your social centre is in NL.

So, you won't be able to take advantage of Swiss taxation. Your will be taxed in NL for your worldwide income and worldwide net assets. Any taxes paid are deductible in your NL tax filing.

About "Could you just be a Dutch employee and commute to Switzerland on the company's dime?"
Basically if you work here for more than 3 months in a year (used to be 9 days! ) & you are an EU citizen then you need a Swiss work permit - there are some professions where you have to register immediately.

Thanks for your replies so far

If I remain on the Dutch payroll, I would get some compensation for doing a project abroad - apart from transportation and housing, I'd receive an extra allowance of about +- 1500 CHF net to cover for additional expenses.

Including the extra allowance and pension contributions, my marginal tax rate in the Netherlands is approx 32%, based on the same 100K CHF. Every percent tax rate decrease yields an extra 85 CHF net per month, and I guess a marginal tax rate of about 20% should very well possible (given my 'relatively' low income).

I've learned that the Dutch tax service levies Dutch income tax, based on worldwide income, relative to the proportion of Dutch income vs worldwide income. So when no income is earned in the Netherlands, no additional income tax is levied. This is how it works in general, I will have to confirm whether this is also the case for Switzerland.

But, according to some replies, we wouldn't even have a choice: given that I'd pretty much work full-time in Switzerland, that's where I would have to register (as well) and pay taxes, right?

An expat agreement would probably be the easiest solution. You remain a Dutch employee, but the company will pay for accommodation in CH + some salary compensation to afford life in Switzerland.

However in that case the company will probably not refund the weekly commuting (if they were planning to do this in the first place).


Have you considered making Switzerland your "centre of life"? In my opinion, that is the only way to benefit from low taxes etc. The autohorities don't have to know that you are going back EVERY weekend, and the reality is probably that you will end up going only every other week or less. I have seen this happening to other people...

Hello raschaoot


I know nothing about the tax situation but I do know that the Swiss authorities will require you do obtain a residency permit even if you travel back every weekend - you will be required to obtain a B permit. see also advice from Marton

Secondly they will hit you for a health insurance contribution.
This will be more that 300 Chef a month minimum plan. You may get away with this one by organising an international coverage from you existing health insurer. I seem to remember that there is a recent thread started by an Irish guy moving to Basel who was going down this route.


I think you may also find that a canton like Geneva might be more flexible than Schwyz for example. It would also help if you employer is important to the canton where they are based. negoitate from a position of power!


Good luck

John

do you know know how much it will cost to rent an appartment here in CH? At the very least CHF 1'500 per month, but I guess the minimum will be closer to CHF 2'000 per month (for a one person household). When your employer will pay for it, it will be taxable as income. Same for your travel expenses during the weekends, if these are reimbursed by the employer. That applies to Dutch as well as CH taxation.

I won't have a choice in making CH my "centre of life". I am in a registered relationship and my other half remains in the NL. For some other reasons have to remain registered at my current address in the NL as well. Plus, I'll be commuting. I guess this only really matters for the Dutch tax service - as long as my income is taxed at source, the Swiss won't care.

@JohnC: I can apply for cross-border health insurance coverage (had that a few years back as well), I just don't know whether I'll still be entitled to get a Dutch health insurance if I don't have a Dutch salary and do not pay Dutch social insurance premia.

@switch: The company will pay for (simple) housing and commuting expenses. You're saying these expenses are taxable, right?

@Wakey: Will the Swiss tax authorities even allow me working there for a year, full-time, without paying Swiss income tax?

G permit for EU weekly commuters possible. Can be as far as Azores.

raschaoot, I understand that you are confused about that new tax partnership legislation in NL, but if you get a B permit, deregister from municipality and travel weekly it wont harm you tax wise. You will be considered as emigrated person.
There is also a number of scenarios depending on your partnership status.
http://www.belastingdienst.nl/variab....html#P58_6628

But is seems to me you will remain a tax resident even if you get one year B permit because your employer is Dutch company.
http://www.belastingdienst.nl/variab...d_temporarily/

In this case you better take a G permit. Genuine as real situation is.

good call Amaras

Looks like the G Permit is the way to go
In the old days when I first moved here the border countries had to border Switzerland but now it seems that this has been relaxed.

See offical website here:

http://http://www.bfm.admin.ch/content/bfm/en/home/themen/aufenthalt/eu_efta/ausweis_g_eu_efta.html

Regards

John

I've looked into the G permit thing and have a few questions:
- Am I allowed to get a G permit if I am on the Dutch payroll and no Swiss taxes are paid?
- A G permit does not grant me residency status. But can I rent a place to live?
- It says that I am required by law to return home every week. I might not do so every weekend (skiing, sight-seeing, girlfriend comes to visit me, whatever). Is this a big problem?

Thanks