Remote from holiday abroad: tax guide for border workers (cross-border guide)

Context

In a nutshell

• Tax at source: withheld in Switzerland, not in the holiday country
• LAMal: coverage guaranteed everywhere, but check with the insurer
• Communicate to the employer: recommended administrative practice before departure

Key facts

• What: Continue working remotely during a holiday in a third country
• When: Temporary period of stay abroad (days or weeks)
• Where: Any country outside Switzerland (EU, EEA, non-EU)
• Who: Border with G Permit and Swiss contract
• Legal basis: Italian-Swiss Convention of 9 December 1976

A border worker who continues to work remotely while on holiday abroad does not incur double taxation. The income tax at source is withheld exclusively from Switzerland, as established by the Italian-Swiss Convention of 9 December 1976. This principle remains valid regardless of where the border worker is physically at the time of execution of the work.

However, the situation is complex because it touches on the issue of temporary residence. During the holiday period, the border worker maintains his/her ordinary residence and personal registration, while the stay abroad is exceptional. Italy avoids double taxation on income from employment through the tax credit (EC framework of the annual tax return, Form 730). Therefore, any tax due in Italy is calculated net of tax

Operational details

Taxation and tax at source: what changes and what doesn't

Taxation on income from employment for a border worker follows the principle of the place of performance of the benefit. Since the frontier worker is formally employed at a Swiss company, the Swiss source tax is the correct tax, regardless of where the work is physically performed at that time. This is particularly relevant during a holiday: the fact that the border worker temporarily stays in a third country (France, Spain, Austria, Greece, Portugal) DOES NOT trigger a parallel taxation in the holiday country for that income. European laws generally do not tax income from services performed remotely to a Swiss employer.

Swiss rates remain unchanged: withholding tax withholding continues according to federal and cantonal tables. Employee social contributions (AVS/AI/IPG at 5.3%, AD/AC at 1.1% up to CHF 148,200 of wage bill, LAINF between 0.7% and 1.5%, LPP between 7% and 18% depending on the age group from 25 years onwards) remain ordinary. None of these amounts change according to the place of performance of the service.

Compulsory LAMal insurance guarantees 24-hour coverage, even in the event of a medical emergency in the holiday country. Emergency benefits are covered by the Swiss health insurance fund by virtue of the domiciliation in the LAMal registers, even if temporarily absent

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

What to Communicate to Your Employer Before a Working Vacation

The first step is to inform the HR manager and your direct supervisor that you will be working remotely from a foreign location. Although there is no explicit legal obligation to do so, it is a common administrative practice and prevents misunderstandings regarding availability, time zones, and compliance with company remote work policies. Many Swiss companies already have procedures in place for remote work; informing your employer of the duration of your stay abroad allows for transparent coordination and demonstrates professional responsibility.

Aspects to report to your employer:

• Precise period of the working vacation (from… to…)
• Country of stay and time zone difference
• Confirmation of your availability for meetings and critical deadlines
• Verification that the remote Internet connection is stable and secure (VPN, privacy, compliance with company cybersecurity protocols)

Checks with LAMal Insurance and Banks

Before leaving, contact your Swiss health insurance fund to clarify whether coverage includes emergency care in your destination country, what documents or procedures are necessary in case of a medical visit, and whether prior authorization is required for planned treatments. LAMal usually covers emergencies, but reimbursement timelines and procedures vary.

Also contact your bank to inform them of the situation, so that recurring payments (mortgage, insurance, utilities) are not disrupted due to a temporary address change or atypical transactions from your vacation area.

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