French-German cross-border workers: tax rules for 2026
French residents working in Germany fall under the Franco-German tax convention of 21 July 1959. The applicable regime depends on the precise location of the place of residence and place of work relative to the border zone defined by the convention.
Two regimes depending on the geographic zone
The cross-border regime (zone to zone)
When the employee resides in the French border zone and works in the corresponding German border zone, salaries are taxed exclusively in France. Germany does not levy withholding tax.
The border zone is defined asymmetrically by the convention. On the German side, it covers a strip of 30 km from the border. On the French side, it covers the entire departments of Bas-Rhin (67), Haut-Rhin (68) and Moselle (57) — regardless of the distance to the border. On the German side, the Länder of Baden-Württemberg and Rhineland-Palatinate are primarily concerned.
The regime outside the border zone
When the place of residence or place of work is located outside the border zone, Germany withholds tax at source. France then grants a tax credit using the imputation method to avoid double taxation.
Remote working from France
A Franco-German mutual agreement sets a tolerance threshold of 45 days per year of remote working performed outside the border zone without affecting cross-border status. Beyond this threshold, the portion of income corresponding to days worked outside the zone may become taxable in Germany.
⚠️ Remote working performed from a home located in the French border zone is neutral: it does not count towards the 45-day threshold.
Filing treatment
Cross-border regime (zone to zone)
German salaries are declared in France on form 2042 in the standard boxes, and are subject to the French progressive income tax scale.
Outside the border zone
Salaries are declared on form 2042C with indication of the foreign source. German withholding tax generates a tax credit that can be offset against French income tax.
The Alsace-Moselle local regime
Residents of Alsace and Moselle benefit from a local social security regime that coexists with the rules for affiliation to the German social security system for cross-border workers employed in Germany. Rights and obligations differ depending on the applicable affiliation regime.
Common filing mistakes
1. Incorrect assessment of the border zone
The zone is asymmetric: 30 km on the German side, entire departments 67, 68 and 57 on the French side. A municipality outside the zone entirely changes the applicable regime — the verification must be precise.
2. Exceeding the remote working threshold
With the spread of remote working, the 45-day outside-zone threshold can be reached more quickly than anticipated. Care should be taken to distinguish remote working from the French border zone (neutral) from remote working elsewhere (counts towards the threshold).
3. Confusion between zone and non-zone regimes
Under the zone-to-zone regime, the salary is taxed exclusively in France under the ordinary progressive scale — it is not exempt. It is only under the non-zone regime that Germany withholds at source and France grants a tax credit.
A return that depends on your municipality
The applicable regime depends directly on the precise location of the place of residence and place of work. The same situation can lead to two entirely different filing regimes depending on whether the municipality is or is not in the border zone.
Fidencia.tax incorporates the zone/non-zone distinction and guides you through your filing according to your actual situation.
File correctly for your zone — fidencia.tax
This article is provided for informational and educational purposes only. It does not constitute tax, legal, or financial advice. The rules presented are general in nature and may not apply to your personal situation. Consult a qualified professional (chartered accountant, tax lawyer, wealth management adviser) for any tax decision. Fidencia.tax is a filing assistance tool and does not replace professional advice.
Legal references: Franco-German convention of 21 July 1959, amendment of 31 March 2015, CGI articles 4 A and 197 C.