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Cross-border
economic
development
27
Territory portraits: economic development on different borders
France-Switzerland
Comparison of framework
conditions
Framework conditions in France and Switzerland are significantly different,
both from a financial and administrative point of view. Companies in
Switzerland are taxed less (taxes vary depending on the canton and the
municipality, corporation tax is lower by about ten percentage points,
there is no equivalent tax to France’s territorial economic contribution
(CET), salaries are higher but social security contributions are lower).
37
In
addition, they are less complex administratively (calculation of salaries,
accounting practices, tax returns). Rents for business property are
similar, or sometimes lower, in Switzerland for small businesses that
do not need much space, especially in Greater Geneva (many premises
are available for rent in the Canton of Geneva).
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The “standard” corporation tax rate is around 33% in France (though numerous tax credits
can reduce this rate, or a reduced tax rate can be applied in certain circumstances, in
particular for SMEs). In Switzerland, the federal tax rate is 8.5% for capital companies; by
adding a variable rate for the canton and municipality, the overall tax rate can fluctuate
between about 21% and 24%. See the EUREX study on this subject: “Avantages comparés
pour l’implantation d’activités économiques en France et en Suisse (Genève/Vaud)”
(Comparative advantages for the establishment of economic activities in France and
Switzerland (Geneva/Vaud)), carried out in 2010 for the Projet d’agglo franco-valdo-genevois
(France-Vaud-Geneva conurbation project), and available in French at:
www.med74.fr/filemanager/download/397
Swiss households pay higher income tax than those in France and
employees pay directly for a large proportion of their social security
cover (sick pay, pension). Given the higher salaries, but also a higher
cost of living and private social security insurance in Switzerland, for
an equivalent job, the standard of living is comparable for a French and
Swiss household. Cross-border working, when it makes it possible to
benefit from a Swiss salary and the French cost of living, is extremely
advantageous for employees and also benefits Swiss companies, which
are able to attract qualified workers, of which there is a shortage in
Switzerland. The difference in cost of living also explains the widespread
practice by Swiss residents of making purchases in France (development
of retailers on the border, establishment of Swiss retailers on the French
side of the border).
Portrait of a territory
FRANCE
GERMANY
50 km
Haute-Saône
Basel
INTERREG
France-Switzerland
FRANCHE-COMTÉ
Geneva
Trans-Jura
Conference
Doubs
Jura
Territoire
de Belfort
VD
NE
BE
JU
SWI TZERLAND
Greater Geneva
BE : Berne
NE : Neuchâtel
JU : Jura
VD: Vaud
Doubs Urban Agglomeration
Bern
Besançon
La Chaux de Fonds
LGCC
LGCC
Mont Blanc Area
EGTC ( under creation )
Trinational
Eurodistrict Basel