Are you already a cross-border worker, or are you thinking of becoming one? Would you like to learn more—especially about your health insurance (cross-border commuter insurance), your new tax situation, your take-home pay in Austria, the best bank account for cross-border commuters, how to optimize currency exchange, and much more? Then B-Quadrat is the right place for you.

We are an independent insurance broker specializing in cross-border workers. We know exactly what questions you have. We’re happy to assist you in applying for the health insurance plan that’s right for you, help you with the paperwork, and offer valuable tips for you as a cross-border worker.

We will guide and support you and your family throughout the entire process. Of course, we will also be there to offer advice and assistance afterward.

Save yourself the trouble of tedious and time-consuming research—trust us! We’ve been advising and assisting cross-border workers for over 20 years.

Sincerely,

THE VIDEO

Learn everything about our services for new cross-border commuters in just under 2 minutes.

Professional advice for cross-border workers, including net pay calculations

> Free and non-binding advice since 2003
> Net wage calculation & practical tax tips
> Best and Most Affordable Health Insurance for Cross-Border Commuters
> Tips on Choosing the Best Bank Account and Exchanging Currency
> Help with registering with the tax office and much more

As a cross-border commuter from Austria to Switzerland or Liechtenstein, there are 3 variants of health insurance are available. You have 3 months from the start of your employment to decide whether to take out health insurance in Switzerland, statutory health insurance in Austria (ÖGK) or private health insurance for cross-border commuters (Grenzgängerversicherung).

Which of these options suits you best depends very much on your situation: current age, state of health, family situation and the desired level of benefits.

As a rule, private health insurance is the best option for cross-border commuters because, to put it in a nutshell, the level of benefits is by far the highest and the insurance premiums are usually much cheaper than with the other two options.

Ask us: we will be happy to work with you to find the best solution!

Health insurance – comparison for cross-border commuters

> Comparison of all tariffs and providers
> With guarantee nowhere cheaper than at B-Quadrat
> Independent and objective

Cross-Border Workers & Taxes
for cross-border workers traveling from Austria to Switzerland / Liechtenstein

You live in Austria and work in Switzerland or Liechtenstein. This inevitably raises the question of which country you actually pay tax in!

Unlike with health insurance, cross-border commuters have no choice when it comes to income tax. The tax procedure for cross-border commuters is clearly regulated in the so-called double taxation agreement (DTA) between Austria and Switzerland or Liechtenstein. Among other things, it stipulates in which country a cross-border commuter has to pay tax.

In which country does a cross-border commuter pay which taxes?

Tax in Austria (place of residence)

Cross-border commuters who work in Switzerland or Liechtenstein and live in Austria pay so-called residence tax in accordance with the double taxation agreement. This means that you pay your income tax in the country in which you live, i.e. in Austria.

Tax in Switzerland / Liechtenstein (place of work)

In addition, cross-border commuters pay withholding tax in Switzerland or Liechtenstein. This amounts to 4% in Liechtenstein. In Switzerland, the withholding tax varies between cantons and municipalities and depends on various factors, such as marital status, income and religious affiliation.

However, the amount of withholding tax does not matter, as it is offset against the Austrian tax in the income tax return.

Here is an example:
Assuming you have to pay EUR 20,000 income tax on your income in Austria and you have already paid EUR 5,000 withholding tax in Switzerland, you only have to pay EUR 15,000 in Austria. If you had paid EUR 10,000 in Switzerland, you would only have to pay EUR 10,000 in Austria. In total, you always have to pay EUR 20,000, so it doesn’t matter how high the withholding tax is.

Wage calculation for cross-border commuters

> Free gross/net calculation for cross-border commuters from Austria
> We calculate what is left in Austria after all deductions
> We take your individual situation into account

How is the Austrian tax calculated?

In the Austrian tax system, there is a graduated scale of income tax rates depending on the size of the annual income.

For example, a tax rate of 20 percent applies to income tax for the progression level from EUR 13,539 to EUR 21,992. In the next progression level from EUR 21,992 to EUR 36,458, a tax rate of 30 percent applies. In the progression stage from EUR 36,458 to EUR 70,365, a tax rate of 40 percent applies , and so on.

For incomes of 13,308 euros or more, there are a total of six tax brackets:

0 to 13,539 euros per year –> Tax-free

Over 13,539 euros up to 21,992 euros per year –> 20 % income tax

Over 21,992 euros up to 36,458 euros per year –> 30 % income tax

Over 36,458 euros up to 70,365 euros per year –> 40 % income tax

Over 70,365 euros up to 104,859 euros per year –> 48 % income tax

Over 104,859 euros up to 1 million euros per year –> 50 % income tax

Over 1 million euros per year –> 55% income tax

Duties and taxes in Switzerland and Liechtenstein

In order to be able to calculate the Austrian tax, you must first calculate the net salary in Switzerland or Liechtenstein. To do this, you must deduct the following taxes and withholding tax from the gross salary in Switzerland or Liechtenstein.

For information: The following figures are approximate. Your employer will provide you with the exact amounts.

Taxes in Switzerland:

5.15% AHV (Pillar 1—statutory or government pension)
5.00 % BVG (2nd pillar – pension fund or occupational pension plan)
1.10 % ALV (unemployment insurance)
1.40 % NBU (contribution for non-occupational accident insurance)
0.39 % Contribution to daily sickness benefits insurance

Taxes in Liechtenstein:

4.55 % AHV (1st pillar – statutory or state pension)
SFR 300 – 400 BVG (2nd pillar – pension fund or occupational pension plan)
0.50 % ALV (unemployment insurance)
SFR 80 – 100 NBU (contribution for non-occupational accident insurance)
0.27 % Contribution to daily sickness benefits insurance (company-dependent)

Tax optimization through vacation and Christmas bonuses

In Switzerland and Liechtenstein it is not usual to receive a 13th and a 14th monthly salary. The usual salary is 12 or max. 13.

As the 13th and 14th salary in Austria is only taxed at 6% instead of full income tax, we recommend that you talk to your employer and agree on 14 salaries. In many companies this is not a problem at all and therefore you should definitely seek a discussion, as this is definitely the easiest way to save tax.

Do you have any questions about working in Switzerland / Liechtenstein?

Clarify the most important questions quickly, yet professionally, personally and individually from home.

Registration with the tax office for cross-border commuters to Switzerland / Liechtenstein

All cross-border commuters must register with the tax office at their place of residence. To do this, you must either complete the cross-border commuter questionnaire and send it to the tax office together with your employment contract and a copy of your ID, or you can use the online service of the Austrian tax office. Via FinanzOnline you can easily fill in the cross-border commuter form online, save it temporarily and submit it. You can find the form under “Further services” and “Further applications”.

Based on your information, the Austrian tax office will calculate your expected tax and send you the cross-border commuter registration card. In Austria, you will then pay your tax in advance on a quarterly basis (February 15, May 15, August 16 and November 15).

Tip: Of course, we are also happy to provide our customers with advice and assistance on all questions relating to registration with the tax office and will also be happy to help you fill out this form on request.

Is it worth working in Switzerland / Liechtenstein as a cross-border commuter from Austria?

This question probably concerns everyone who is considering working as a cross-border commuter in Switzerland / Liechtenstein. However, there is no one-size-fits-all answer! Nevertheless, we can say from experience that salaries in Switzerland / Liechtenstein are noticeably higher than in Austria. Our gross-net calculator, which has been specially developed for cross-border commuters from Austria to Switzerland / Liechtenstein, provides clarity, as we calculate what is actually left over from the salary in Austria after deduction of all taxes in Switzerland / Liechtenstein (social security contributions, withholding tax), health insurance and Austrian tax.

In addition to the significantly higher salary in most cases, there are other advantages to be mentioned: First and foremost, health insurance for cross-border commuters. Cross-border commuters from Austria have 3 options. As a rule, cross-border commuters opt for a private health insurance solution from Austria and thus benefit from significantly lower premiums and a much better scope of cover than with statutory health insurance. In addition to health insurance, it should also be mentioned that the pension system in Switzerland / Liechtenstein is stronger than that in Austria, that accident insurance usually automatically includes leisure accidents and accidents at work and that you are better covered if you are unable to work due to an accident or illness.

As already mentioned at the beginning, however, there is no general answer as to whether a job as a cross-border commuter from Austria to Switzerland / Liechtenstein is worthwhile, as in addition to the points mentioned (higher salary level, better and cheaper health insurance, better pension provision, better accident insurance, better cover in the event of illness), there are also some individual factors that should be taken into account in the decision.

Best cross-border commuter advice incl. net salary calculation

> Free and non-binding advice since 2003
> Net wage calculation & practical tax tips
> Best and cheapest health insurance for cross-border commuters
> Help with choosing the right bank account
> Help with registering with the tax office and much more

Why B-Quadrat?

Competent advice – popular with cross-border commuters since 2003.

No need for lengthy research. Let us advise you free of charge and without obligation.

We have a wealth of experience based on countless conversations with cross-border workers. Take advantage of this and invest 60 minutes of your time!

We’ll answer all your questions about cross-border commuters, provide you with advice and support, and—thanks to our independence—we’re sure to find the best cross-border commuter health insurance plan for you.