Introduction

Living in Germany changes the default

Moving your habitual abode to Germany flips your tax baseline: Germany taxes your global income unless a treaty or special rule says otherwise. That means Swiss-source wages, pensions, and investments must be analysed under both German domestic law and the DTA.

What “Swiss specifics” still matter?

Two recurring topics: (1) employment in Switzerland while residing in Germany (the Grenzgänger regime of Art. 15a DBA) including the residual 4.5% Swiss withholding and the 60 non-return days; and (2) how Swiss pensions (AHV/2nd pillar/3a) and Swiss investment income interact with German rules (progression, credit).

Filing reality

Even with German payroll or Swiss source tax in play, your annual German assessment reconciles everything—allowances, treaty relief, foreign tax credits—so documentation and year-end statements from Swiss employers/pension funds/banks are essential.

1) German Residency & Scope

With a residence (AO §8) or habitual abode (AO §9) in Germany, you are unlimited tax liable on worldwide income (EStG §1). “Limited tax liability” applies only if you have no residence/habitual abode in Germany and earn German-source income. Treaty outcomes can modify where salary/business profits are taxed, but residency for German assessment is still domestic-law based.

2) The Germany–Switzerland DTA

• Employment (Art. 15): Taxation generally where work is performed; special Art. 15a rule for commuters overrides the default (see next section).
• Business profits (Art. 7): Germany taxes Swiss-resident businesses only if there is a German permanent establishment; vice versa for German residents with Swiss PEs.
• Real estate (Art. 6): Taxed where the property is located.
• Relief: Germany typically applies credit or exemption methods to avoid double taxation per treaty articles and §34c/§34d/§36 EStG mechanics.

3) Cross-Border Commuters (Art. 15a DBA D-CH)

As a German-resident employee who regularly works in Switzerland and returns to your German home, you may qualify as a Grenzgänger under Art. 15a of the DTA. Key features:

• Primary taxation in Germany: Your Swiss salary is fully taxable in Germany as state of residence. :contentReference[oaicite:1]{index=1}
• Swiss residual withholding: Switzerland may levy up to 4.5% source tax on gross remuneration; Germany grants a tax credit for this amount in the assessment. :contentReference[oaicite:2]{index=2}
• 60 non-return days limit: If you fail to return to your German residence on more than 60 working days in a calendar year (business reasons), the Grenzgänger status is lost; Switzerland then gains broader taxing rights based on work-state taxation. :contentReference[oaicite:3]{index=3}
• Certificates & process: German tax offices issue residency/commuter certificates (e.g., Gre-1/Gre-2) used by Swiss payroll to cap withholding at 4.5%. :contentReference[oaicite:4]{index=4}
• Court & guidance: Recent decisions confirm daily-return interpretation and credit mechanics; always monitor employer home-office agreements and travel patterns. :contentReference[oaicite:5]{index=5}

Home-office days in Germany can affect the non-return day count and treaty allocation; special COVID-era arrangements have expired—use current rules. :contentReference[oaicite:6]{index=6}

4) Common Income Items & Relief (German residents with Swiss connections)

• Swiss employment income: Taxable in Germany; claim Swiss 4.5% withholding as a credit. Track non-return days and keep Swiss payroll statements. :contentReference[oaicite:7]{index=7}
• Swiss pensions (AHV/2nd pillar/3a): Typically taxable in Germany for residents (subject to treaty specifics and product type). Obtain annual pension statements for German return.
• Swiss bank/investment income: Taxable in Germany (worldwide basis). Swiss withholding taxes may be creditable under the DTA.
• German-source income while resident in Germany: Regular German rules apply (wages with ELStAM, business income, rentals, capital income). Consider solidarity surcharge and church tax where applicable.

5) Practical Steps & Documentation

• Register residence in Germany and ensure payroll uses correct ELStAM attributes.
• If commuting to Switzerland: secure/renew Gre-1/Gre-2 certificates; maintain a day-by-day calendar (returns vs. non-return days), travel tickets, and home-office logs. :contentReference[oaicite:8]{index=8}
• Collect Swiss Lohnausweise, Quellensteuer confirmations (showing 4.5%), and pension/bank annual statements for the German return.
• Coordinate with your Swiss employer on payroll setup (4.5% cap) and with your German advisor on FTC mechanics in the assessment. :contentReference[oaicite:9]{index=9}

7) Compliance & Useful Links

• Art. 15a DBA D-CH (Grenzgänger): background and professional summaries incl. 4.5% credit. :contentReference[oaicite:12]{index=12}
• 60 non-return days rule (loss of commuter status). :contentReference[oaicite:13]{index=13}
• Certificates GRE-1/GRE-2 (Finanzämter Baden-Württemberg). :contentReference[oaicite:14]{index=14}
• Canton Zurich info on 4.5% commuter tax. :contentReference[oaicite:15]{index=15}
• KPMG/BMF notes on home-office consultation agreements (historic; check current status). :contentReference[oaicite:16]{index=16}

8) FAQ