Can I as a cross-border commuter also save on social security contributions?
March 19, 2022 | 60,00 EUR | answered by Thomas Schottmann
Dear tax advisor,
My name is Jens Pohlmann and I work as a cross-border commuter in Switzerland. In the past, I have already benefited from the tax advantages as a cross-border commuter, but now I am wondering if it is also possible to save on social security contributions.
Currently, I am paying social security contributions in both Germany and Switzerland, which of course affects my net income. Therefore, I am looking for ways as a cross-border commuter to achieve savings in this area.
I am aware that the social security systems in Germany and Switzerland are different and it may therefore be complicated to save contributions. Nevertheless, I am interested to know if there are any legal regulations or agreements between the two countries that could allow me to reduce social security contributions.
I am concerned that I may be financially disadvantaged as a cross-border commuter due to double contributions and would like to know if there are ways to solve this problem. For example, are there specific forms or applications that I can submit to save on social security contributions?
I would greatly appreciate your expert advice on this matter and hope that you can provide me with some tips and solutions on how I can also benefit as a cross-border commuter in terms of social security contributions.
Thank you in advance for your support.
Sincerely,
Jens Pohlmann
Dear Mr. Pohlmann,
Thank you for your inquiry regarding the possibility of saving social security contributions as a cross-border commuter. It is understandable that you are thinking about how to optimize your net income by saving in this area. I am happy to provide you with some information on this topic.
First of all, it is important to know that the social security systems in Germany and Switzerland are indeed different. As a cross-border commuter, you are usually insured in your country of residence, which is Germany. This means that you pay contributions to the statutory pension, health, long-term care, and unemployment insurance in Germany.
However, in Switzerland, you are not automatically covered by social security, as you only work there but do not reside there. Therefore, in Switzerland, you must also make contributions to the AHV (Old Age and Survivors' Insurance) and to the occupational pension scheme. These contributions are mandatory and cannot be simply bypassed.
However, there is a social security agreement between Germany and Switzerland, the so-called "EU Regulation 883/2004," which ensures that cross-border commuters are not double-taxed for social security. This means that you can only be insured in one country, usually your country of residence, which is Germany.
To ensure that you do not pay double contributions, you must apply for form E 101 from the relevant German health insurance fund. This form certifies that you are insured in Germany and exempt from Swiss contribution obligations. This way, as a cross-border commuter in Switzerland, you can save on social security contributions.
It is important that you take care of applying for form E 101 in a timely manner to avoid back payments. I also recommend that you contact a specialized tax advisor or a consulting service for cross-border commuters to clarify your individual situation and receive further tips on saving on social security contributions.
I hope this information helps you and am available for any further questions.
Best regards,
Thomas Schottmann
