Financial Planning For Frontaliers

The establishment of the European Union (EU) has led to several advantages for the citizens of these countries, businesses belonging to these states, and also created the freedom of movement within the Schengen Area.

These rights make this region a unique group of countries that give their citizens and their organizations immense power and advantages. A citizen of these countries can also find work in another jurisdiction easily, travel across the region without any problems, and businesses can indulge in free trade.

One of the best things about the laws and partnership introduced by this consortium of countries is employment across borders. The concept has become se evolved, that people can even be living in one country, and working in the other.

A special and now fairly common pairing for this purpose is that of France and Switzerland.

A frontalier working in switzerland - Globaleye Switzerland is therefore someone who has a full-time residence in France, but commutes across the border for employment. An amazing thing about this pair is that different taxation provisions apply to them.

Taxation Of Compensation

As with the taxation on products, property and other items, taxes on income can also vary depending on which canton you are working in. Some cantons take this tax from your salary to begin with.

If living in a canton that does not deduct this amount, you will proclaim your salary in France for ordinary taxation.

In other cantons, including Geneva, the employer will deduct the tax from your pay, due to which you will earn credits on your taxes in France.

Insurance

Obtaining health insurance is something Western European states take very seriously, the omission of which can lead to the application of various penalties.

The most recent agreement between Switzerland and France on this issue, which took place last year, requires that frontaliers that have not yet chosen a health insurance scheme could be forced to automatically become part of the LAMal system.

It could also mean that they would have to pay large sums as penalties to these insurer services.

Recommendations

Based on this agreement, Swiss bodies have instructed that all the workers that are part of the French health insurance system check whether they have made a declaration about their choice, and finish the necessary paperwork and submit it before 30th September 2017.

Since this process can take several weeks, one reason of which is that obviously many people will rush to avoid the application of the penalties, the best thing to do as a frontalier is to begin the process as soon as possible.

If residing in the Canton of Geneva, you can also get in touch with their special service to help yourself choose a health insurance scheme.