As of January 2010, Geneva border workers who generate over 90% of their income on Swiss territory may request ‘Quasi-résident’ status. This means that they can deduct their actual expenditure, rather than paying tax at source.
Quasi-résident status: who is eligible?
In order to qualify for quasi-résident status, the taxpayer must be a border worker who works in the canton of Geneva.
The taxpayer must also prove that 90% of his/her income is earned in Switzerland. The following income is considered for quasi-résident status:
- Salary, bonus, allowances, etc.
- Interest earned on accounts, rental value of acquired property assets
- Retirement pension, superannuation and annuities
- Benefits, etc.
Quasi-résident status: what are the terms?
The border worker taxpayer must submit a request for correction of tax withheld at source specifying that he/she would like to deduct his/her actual expenditures.
WARNING: if you wish to obtain quasi-résident status, you must tick only the second part of this form, reserved for the deduction of actual expenditures.
Actual expenditure notably refers to childcare expenses, contributions made to a 3A pillar, URSSAF contributions for CMU, development of property assets, donations, travel expenses to a maximum amount of CHF 500 p. a., etc.
The request for quasi-résident status must be submitted to the competent service for tax withheld at source (Service de l’impôt à la source) before 31st March of the year following the tax period concerned.
At a later stage, an ordinary tax return will be sent to the taxpayer, who will have to complete the form with the amounts of his/her income, debts and fortune. The declaration is then submitted to the cantonal tax authority, who will calculate the amount of tax due.
IMPORTANT: If the new amount of tax is higher than the amount withheld at source, you will no longer be authorised to choose the option which is most advantageous for you and the ordinary tax amount will be due. It will not be possible to return to the earlier system.
Quasi-résident status is not granted automatically; it must be requested every year. Before submitting a request for quasi-résident status, we strongly advise that you consult a specialist who can provide you with a simulation prior to making your decision.