Are there ways to optimize my tax burden as a cross-border commuter?
July 3, 2024 | 50,00 EUR | answered by Helma Fischer
Dear tax consultant,
I am Johann Kock, a cross-border commuter between Germany and Switzerland. For several years, I have been working in Switzerland but still reside in Germany. Lately, I have noticed that my tax burden as a cross-border commuter is quite high and I am wondering if there are ways to optimize it.
Currently, I pay taxes on my income in both Switzerland and Germany. Since tax rates in Switzerland are generally lower than in Germany, I would like to explore if there are measures I can take to reduce my tax burden. Additionally, I am concerned that I may be overlooking any tax benefits or deductions that may be available to me as a cross-border commuter.
I am wondering if, for example, it would make sense to claim certain expenses to lower my tax burden. Or are there specific regulations or agreements between Germany and Switzerland that I could take advantage of to gain tax benefits?
I would greatly appreciate it if you could provide me with specific ways to optimize my tax burden as a cross-border commuter. I want to ensure that I am maximizing all legal options to improve my financial situation.
Thank you in advance for your support.
Sincerely,
Johann Kock
Dear Mr. Kock,
Thank you for your inquiry regarding optimizing your tax burden as a cross-border commuter between Germany and Switzerland. As a tax advisor specializing in this topic, I can show you some concrete possibilities on how you can improve your financial situation.
First of all, it is important to know that as a cross-border commuter, you generally have to pay taxes in both countries. However, there are various measures to optimize your tax burden. One possibility is, for example, to consider deductible expenses. As a cross-border commuter, you can, under certain conditions, claim expenses such as travel between your residence and workplace, work-related supplies, training costs, or relocation expenses for tax purposes. These can reduce your tax burden.
Furthermore, there are special regulations and agreements between Germany and Switzerland that can offer you tax advantages. For example, there is the double taxation agreement between the two countries, which ensures that you are not taxed twice. You can, among other things, request the offsetting of taxes paid in Switzerland against your German tax burden.
Another important point is choosing the right tax class. As a cross-border commuter, you have the option to choose between tax class I and tax class III in Germany. In some cases, tax class III can lead to a lower tax burden, especially if your spouse has no income or works in a lower-taxed country.
In addition, you should also consider the option of retirement savings. By contributing to a company or private pension plan, you can take advantage of tax benefits and at the same time plan for your future.
However, it is important to emphasize that every tax situation is individual and it is advisable to seek advice from a tax advisor who is knowledgeable about cross-border commuters. Only in this way can you ensure that you fully exploit all legal possibilities and optimize your tax burden optimally.
I hope this information is helpful to you and I am happy to answer any further questions you may have.
Sincerely,
Helma Fischer
