As of 1 January 2026, the amendment to the bilateral double taxation agreement (DTA) which was signed in 2023 between Switzerland and France has entered into force. This amendment introduces permanent rules governing the taxation of income derived from cross-border teleworking. The teleworking regime applies to individuals who reside in France and work in Switzerland, such as cross-border commuters, and who perform part of their professional activity through telework from their home in France.
This amendment confirms the introduction of a 40 percent teleworking threshold, including a maximum of 10 days of temporary assignments abroad, for cross-border employees residing in France.
In this alert, we answer some commonly-asked questions relating to the amendment.
How are cross-border commuter permits (G permits) impacted?
These changes do not affect Swiss immigration rules. From an immigration perspective, the immigration requirements for applying for or renewing a G (cross-border commuter) permit remain unchanged, as the amendment relates exclusively to tax matters.
Does exceeding the 40 percent teleworking threshold automatically result in the loss of the G permit?
No, the G permit is a Swiss work authorization granted to a person who lives in France (or another EU/EFTA country) and works in Switzerland while returning home at least once a week. This permit is not automatically withdrawn simply because its holder teleworks more than 40 percent. The permit remains linked to the employment contract with the Swiss employer and to the person’s residence in France, as long as these conditions continue to be met.
Therefore and even if the tax situation changes (for example, the employee becomes taxable in France rather than in Switzerland, or the portion of Swiss income that is taxed changes), the G permit remains valid as long as:
- There is an employment contract with a Swiss employer.
- The employee continues to return home each week (the physical presence requirement of the cross-border permit).
What changes then as of 2026?
In practice, the regime remains largely unchanged compared to the rules applicable until 31 December 2025.
Teleworking carried out in France for up to 40% of the annual working time, including a maximum of 10 days per year spent on temporary assignments outside Switzerland, will remain exclusively taxable in Switzerland.
Two structural elements are now permanently embedded in the agreement:
- Switzerland will pay financial compensation to France for employees whose teleworking rate does not exceed the 40% threshold.
- An automatic exchange of salary data is implemented between the Swiss and French tax authorities to ensure proper monitoring and compliance.
How have employer obligations changed as of 2026?
Until December 31, 2025, the teleworking rate could be evidenced through the employment contract or a teleworking agreement.
From January 1, 2026, employers must actively track teleworking days and temporary assignments for each employee residing in France. Based on this tracking, employers are required to report the teleworking rate to the Swiss Federal Tax Administration (FTA). The reported rate includes teleworking days as well as temporary assignments, capped at 10 days per year.
The reporting must be made at the beginning of year N for the preceding tax year (N–1). As a result, the first data transmission will take place in early 2027, based on teleworking activity during the year 2026.
This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Chase for any case- or company-specific assessments.
