News Salary Administration / Social Security Insurances

Working remotely from abroad

Mobile working from abroad – whether temporary or permanent – is booming. However, working from home across borders, a workation on the beach, or the classic cross-border commuter setup all involve legal and tax pitfalls: social security obligations, tax rules, and permits depend heavily on the country of residence and the duration of the engagement.

Employees working for a Swiss employer may work abroad for various reasons and under different models: In a home office abroad, an employee regularly works remotely from their country of residence for their Swiss employer. Workation refers to temporary or holiday-accompanied work abroad. Cross-border commuters live abroad and work for a Swiss company, commuting daily between their place of residence and place of work. Each of these three constellations entails different obligations for employees and employers, particularly regarding taxes and social security.

Social security: What to keep in mind?

Basic rule: If a person normally works in Switzerland, they are insured here. In the case of permanent or significant activity abroad, there is a risk of a shift in social security affiliation to the country of employment.

Anyone working abroad temporarily for personal reasons and for a maximum of 24 months within the EU/EFTA area (classic “workation”) remains subject to Swiss social security (AHV/IV/EO/ALV) with an A1 certificate.

In the case of teleworking (home office), under the so-called 49.9% rule, social security remains in Switzerland if no more than 49.9% of the work is performed in the country of residence. Requirement: The country (e.g. Germany, France, Italy) must have signed the supplementary agreement and the employee must have cross-border commuter status.

For longer or permanent employment abroad (over 24 months or where agreement conditions are not met), social security obligations arise in the country of employment.

Important: If the A1 certificate is missing or the 49.9% threshold is exceeded, the employee may become subject to social security in the country of residence. This can result in double insurance or retroactive claims from foreign authorities (e.g. in Germany, Italy, or France) against both employer and employee.

Tip: The A1 certificate can be obtained from the competent AHV compensation office (online or paper-based).

Tax pitfalls

Where a double taxation agreement (DTA) applies, income is generally taxed in Switzerland (for Swiss residents) if the stay abroad does not exceed 183 days per year. If the 183-day threshold is exceeded during a workation, a tax liability may arise abroad. The DTA determines which country has the right to tax. The details should always be clarified before departure – ideally already during the planning phase.

In countries without a DTA, employees may become taxable from the very first day. In addition, companies may face a permanent establishment risk, meaning they could unintentionally create a taxable presence abroad if executives or decision-makers work from abroad for extended periods.

Tip:

Always clarify in advance whether and what must be declared abroad
Check the applicable double taxation agreement with the destination country
In case of uncertainty, consult local tax advisors or fiduciary experts

Employment law and permits

Working from home abroad generally requires employer approval. Once this is obtained, local work permits or visa requirements must be reviewed – including for workations. Employers are responsible for ensuring compliance with all regulations, including checking the necessary documents and certificates.

Conclusion

Remote work abroad opens up new opportunities but is never without risk. Employment law, tax, and social security are closely interconnected – professional advice is recommended. This is the only way to avoid unpleasant surprises and significant back payments.

Checklist: Working abroad with a Swiss employment contract

Before going abroad:

Inform your employer and obtain written approval
Determine which social security system applies and apply for an A1 certificate
Clarify work permit/visa requirements for the destination country (consulate/embassy/official portals)
Review the tax situation (DTA, 183-day rule, permanent establishment risk)
Check existing insurance coverage (health, accident, liability) for international coverage and, if necessary, purchase travel insurance
Ensure accessibility and infrastructure (VPN, internet connection, emergency contacts)
Follow or request clear company policies or regulations (e.g. duration of workation, maximum days abroad, reporting obligations)

WHAT we do is not unique, but HOW we do it!

April 2026