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Old 26.01.2015, 21:31
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Complex situation, too many options - job change vs. tax vs....

Hi,

Alright, here's my situation. I went through the posts both here and on toytowngermany.com and couldn't find any similar situation - I admit it is very particular.

Case at hand: two people, 30+ years of age, not married (but living together since ages, plenty of documents to prove it if needed), no kids. Both having pretty good jobs in Munich, Germany. Both are educated to MSc level and have plenty of working experience. Toughest of all - both come from a EU-2 country (Romania & Bulgaria), thus no unrestricted right to work in Switzerland until (at the earliest) next year.
Event: one of the two - say Person 1 - has the option of getting a job in Switzerland. Person 2 has no job lined up in the area.

Option 1: Person 2 gives up the current job and finds something else in Switzerland. Both live and work in Switzerland, pay Swiss tax and health insurance, pretty clear-cut here.

Option 2: Person 2 has the opportunity of working remotely for his current employer in Germany. Both persons live on the German side of the border. If my understanding is correct:
- Person 2 pays regular German tax and health insurance
- Person 1 pays Swiss and German tax as a Grenzgänger, can choose either Swiss or German health insurance (or one of the GG offers covering both countries)
Question 2.1: Is the above assessment right or wrong?

Option 3: Person 2 has the opportunity of working remotely for his current employer in Germany. Both persons live on the Swiss side of the border. Assume the German employer of Person 2 is OK with him/her working from outside Germany.
If my understanding is correct, Person 1 pays Swiss tax and health insurance as a Swiss resident
Question 3.1: Can Person 2 live in Switzerland without having a Swiss work contract (or other Swiss-based earnings)?
Question 3.2: Assuming 'yes' to Q3.1 (the gross and netto wage Person 2 is making now, with German taxes, is fairly decent, even by Swiss standards), which tax would Person 2 be paying (German / Swiss / both)?
Question 3.3: Assuming 'yes' to Q3.1, Person 2 can choose either Swiss or German health insurance (or one of the GG offers covering both countries), right?

I know it's a complex case and a lot to ask for. Any opinions are very much appreciated.
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Old 26.01.2015, 21:37
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Re: Complex situation, too many options - job change vs. tax vs....

Get married.

Tom
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Old 26.01.2015, 21:39
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Re: Complex situation, too many options - job change vs. tax vs....

Benefit being Person 2 would automatically get a work permit in Switzerland, thus leaning towards Option 3?
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Old 26.01.2015, 21:56
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Re: Complex situation, too many options - job change vs. tax vs....

OK I'm looking into this further, correct me where I'm wrong.
Let's take some figures, all values in CHF - not that there's much of a difference now against the EUR:
- Person 1 - 8000 gross / month
- Person 2 - 6000 gross / month

Using the following calculators:
- Germany: http://www.parmentier.de/steuer/steuer.htm?wagetax.htm
- Switzerland: http://www.lohncomputer.ch/en/home.html

Option 2 (both living in Germany):
- Person 1 earns 8000 gross in Switzerland, of which approximately 6500 are left after Swiss GG tax; 200 more deducted for health insurance; finally, German taxes account for another 2400 --> total left ~3900
- Person 2 earns 6000 gross in Germany; deducting health insurance and tax --> total left ~3600
===> total netto income 7500

Option 3 (both living in Switzerland):
- Person 1 earns 8000 gross in Switzerland, of which approximately 5700 are left after Swiss GG tax; 300 more deducted for health insurance; --> total left ~5400
- Person 2 earns 6000 gross in Germany; deducting German health insurance and tax --> total left ~3600
===> total netto income 9000

Or am I terribly wrong? If not, I need to figure out if the extra 1500 make up for the difference in cost of living.
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Old 26.01.2015, 21:59
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Re: Complex situation, too many options - job change vs. tax vs....

If both are living in CH, why pay tax in D?

Tom
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Old 26.01.2015, 22:11
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Re: Complex situation, too many options - job change vs. tax vs....

Ah! You mean there'd be no taxation at the source of the income, but only at the place of residence?! Cos then this changes also the other case taken into account...
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Old 26.01.2015, 22:22
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Re: Complex situation, too many options - job change vs. tax vs....

In Option 2, isn't there some kind of tax treaty where the Swiss taxes are paid back/cancelled out by the German or vice versa?

The problem with Option 3 maybe is would the Swiss authorities accept a German company as an employer of a Bulgarian/Romanian citizen? They are not allowed to be self-employed due to the quota limitations.

http://www.kmu.admin.ch/kmu-gruenden...x.html?lang=en

Or would the family reunification permit, if they can get that as opposed to a concubine one, cancel that out?

I agree with Tom. For ease, get married!
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Old 26.01.2015, 22:45
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Re: Complex situation, too many options - job change vs. tax vs....

This is too complicated for normal people, retire early.
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