An analysis by Tax Partner AG, Taxand Switzerland
According to EU regulation (EU VO 883/2004), employees who work in multiple countries and conduct a significant part (25% or more) of their work in their country of residence are subject to the social security system of that country.
Employers often limit working from home across borders to maintain social security obligations in Switzerland. During the COVID-19 pandemic flexible rules were applied, however these expired on 30 June, 2023.
From 1 July 2023, a multilateral agreement has been signed by various EU/EFTA countries and Switzerland, allowing more extensive cross-border home working (up to 49.9%) without altering social security responsibilities. This applies to employees covered by the EU Free Movement Agreement or the EFTA Convention, with both employer and employee countries of residence having signed the agreement.
Peter Vogt and Deborah Schwarz of our Swiss partner firm, Tax Partner AG, provide further insights here.
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