I just started work in Zürich through an agency (so its classed as an employee of the agency, even if paid per hour).I live in Frankfurt. Ive recently applied for the cross-border permit (G) as Ill be living in Zürich during the week and back in Germany on weekends. Before this project I was a freelancer in Germany.
I spoke to a German tax consultant in Konstanz this week, who advised me to apply for the G-permit, and that I should ONLY be taxed in Switzerland even if Im still registered in Germany.
My tax advisor in Frankfurt however told me this evening that Im still obliged to pay taxes in Germany so long as my Wohnsitz will remain in Frankfurt. To be honest, I dont like my tax advisor in Frankfurt, so moving to Zürich timed in nicely with terminating our business relationship. However I cant neglect that he may be correct about the tax ruling.
I see two options:
1. The tax adviser in Konstanz is correct, and I pay only my taxes in Switzerland and the German Finanzamt have no claims on my income in Switzerland. Permit G continues as normal
2. The Frankfurt tax advisor is correct, and I have to pay (the difference in?) tax also to the Finanzamt in Germany, therefore more taxes to pay than just been taxed in Switzerland. If this is true, then perhaps it would be better to give up my Wohnsitz in Frankfurt, purely to enjoy a better tax break in Zurich (but would then have to register here and find a flat).
Im sure Im not the only one with a cross-borer permit, so Id be interested in how others have set themselves up. Its a bit tricky to figure out what to do, when two different tax advisors give conflicting arguments.
I spoke to a German tax consultant in Konstanz this week, who advised me to apply for the G-permit, and that I should ONLY be taxed in Switzerland even if Im still registered in Germany.
My tax advisor in Frankfurt however told me this evening that Im still obliged to pay taxes in Germany so long as my Wohnsitz will remain in Frankfurt. To be honest, I dont like my tax advisor in Frankfurt, so moving to Zürich timed in nicely with terminating our business relationship. However I cant neglect that he may be correct about the tax ruling.
I see two options:
1. The tax adviser in Konstanz is correct, and I pay only my taxes in Switzerland and the German Finanzamt have no claims on my income in Switzerland. Permit G continues as normal
2. The Frankfurt tax advisor is correct, and I have to pay (the difference in?) tax also to the Finanzamt in Germany, therefore more taxes to pay than just been taxed in Switzerland. If this is true, then perhaps it would be better to give up my Wohnsitz in Frankfurt, purely to enjoy a better tax break in Zurich (but would then have to register here and find a flat).
Im sure Im not the only one with a cross-borer permit, so Id be interested in how others have set themselves up. Its a bit tricky to figure out what to do, when two different tax advisors give conflicting arguments.