In May 2025, the Swiss canton of Geneva paid 396 million francs to the Haute-Savoie and Ain regions of neighbouring France — but why?
Chalk it up to the French cross-border commuters who have worked in Geneva in 2024.
This money, paid out annually (though in different amounts — see below) is a form financial compensation.
It is based on an agreement between Switzerland and the neighbouring countries, aimed at avoiding double taxation.
This pact authorises cantons to deduct withholding tax from cross-border workers’ salaries.
While most of this money remains in Switzerland, a portion is paid to the employees’ respective countries of residence or regional authorities in that country.
This sum is intended to compensate for the public charges incurred by cross-border workers in their home municipalities. The funds are supposed to be used for infrastructure projects of regional importance, such as public transport, among others.
Record-breaking payout
The amount for 2024 is 24 million francs more than the 372 million paid out in 2024 — and the highest figure to date.
The reason is the continued increase in the number of cross-border workers employed in Geneva and residing in neighbouring France — 24,835 new ones in 2024 — a figure never seen since the canton started to collect such statistics in 1989.
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In total, 112,000 people from France worked in Geneva by the end of 2024.
By the way, cross-border commuters from France who work in cantons other than Geneva (for instance, Vaud, Jura or Neuchâtel) have their taxes collected by French authorities, which is why only Geneva is bound by the ‘financial compensation’ agreement.
