← Insights

Expat housing costs in Basel-Landschaft: what applies and what to watch for

What this is about

People posted to Switzerland for a few years often pay twice: the home abroad keeps running, and a second one is added here. Swiss tax law has a deduction built for exactly that — the special professional expenses of expatriates. How it works in general is set out in our guide to the deduction. This article is about the canton of Basel-Landschaft.

Who counts as an expatriate

Before the cantonal level matters at all, the basic condition has to be met. Art. 1 para. 1 ExpaV covers two groups: managers and specialists with particular professional qualifications who are posted to Switzerland temporarily by their foreign employer. Not everyone who comes to Switzerland on a fixed-term basis meets that test.

What "temporary" means is set out in Art. 1 para. 2 ExpaV: employment limited to a maximum of five years. And under Art. 1 para. 3 ExpaV the deduction falls away in any case where fixed-term employment is replaced by permanent employment — even if the five years have not been used up.

The legal basis in Basel-Landschaft

For cantonal and communal tax, Art. 29 of the cantonal tax act applies — the provision on the other costs required to carry out your profession. The special professional expenses of expatriates are given shape by the federal Expatriates Ordinance, which applies directly to federal direct tax.

Basel-Landschaft publishes its own practice: circular no. 511 of the Basel-Landschaft tax administration on the deduction of special professional expenses for expatriates (dated 21 January 2016). You can therefore read in advance how the canton reviews the deduction.

How Basel-Landschaft handles the deduction

Basel-Landschaft does something no other canton in the series states as clearly: the circular expressly confirms that the provisions of the Expatriates Ordinance are applied in practice to cantonal and communal tax as well. That settles any discussion about whether the ordinance is followed at cantonal level.

Two points Basel-Landschaft clarifies expressly

A rented-out home abroad means no deduction. The circular says so directly — if the home abroad is rented out, the housing deduction falls away. That is the same logic as under federal law, only stated more plainly.

The intention to return is central. Basel-Landschaft stresses that alongside fixed-term employment, what matters is the intention to return abroad, referring to a decision of the cantonal tax court. Anyone claiming the status should be able to derive that intention from the contractual documents.

Also worth noting is the transitional point: anyone who already qualified as an expatriate when the revision came into force could keep the status until the end of the current assignment period — even if they would no longer qualify under the new, narrower rules.

Example: residence and workplace in different cantons

An assignee works in Basel-Stadt and lives in Binningen: CHF 3,400 net rent plus CHF 230 utilities. Her home abroad stands empty and is not rented out.

  • Effective housing costs: CHF 3,400 × 12 = CHF 40,800
  • Governing: the practice of Basel-Landschaft, not that of the workplace
  • Flat rate: CHF 18,000 for housing, relocation and travel together

Had she sublet the home abroad, the deduction would have fallen away — the circular is unambiguous on that point.

What to watch for in Basel-Landschaft

Many assignees work in Basel-Stadt and live in Basel-Landschaft. The canton of residence governs the deduction — and the two Basels handle reasonableness differently: Basel-Stadt names a 20 percent limit, Basel-Landschaft relies on the ordinance.

Regardless of canton, it is almost always the same points that cost people the deduction: gross rent claimed instead of net rent, the wrong provision cited, rate determination overlooked when arriving or leaving mid-year, or the home abroad left undocumented. The details are in our guide to the deduction, and what applies to travel and relocation costs is in the article on those.

Who carried the costs is decisive

What matters is who bears the costs economically and how any employer reimbursement is treated for tax purposes. An actual reimbursement against receipts generally rules out an additional deduction. Where a lump sum is paid and added to taxable gross salary in the salary statement, a deduction remains possible.

Every case is different — the potential usually is not

Whether and how much you can deduct depends on your situation: how the assignment is set up, your employment contract, your housing situation abroad, and who actually carried the costs. This article sets out the principles and a simplified example; it does not replace individual advice. What does generalise: on fixed-term assignments, deductions are regularly left on the table — a second look is almost always worth it.

The series: expat housing costs in other cantons

Frequently Asked Questions

How much can I deduct for housing costs in Basel-Landschaft?

What can be claimed are reasonable housing costs in Switzerland, meaning the net rent; utilities and furnishing costs are excluded. Alternatively, where the conditions are met, a flat deduction of CHF 1,500 per month is available. That flat rate replaces not only housing costs but also relocation and outbound/return travel costs. For the comparison, what matters is the total of all effectively deductible costs, not the monthly rent alone. Qualifying schooling costs are not covered by the flat rate.

Which legal basis applies in Basel-Landschaft?

For cantonal and communal tax it is Art. 29 of the cantonal tax act, the provision on the other costs required to carry out your profession. The special professional expenses of expatriates are given shape by the federal Expatriates Ordinance, which applies directly to federal direct tax.

What if the deduction is removed?

Then an objection deadline runs from delivery of the assessment, and it cannot be extended. Check first how the same item was treated for federal direct tax. A difference between federal and cantonal treatment is a strong starting point for the reasoning — but it does not automatically mean the cantonal assessment is wrong.

FIN Disclaimer:

The content on this blog is provided for general informational purposes only. It does not constitute financial, investment, or tax advice and cannot replace individual advice from qualified professionals. While every effort has been made to ensure the accuracy, completeness, and timeliness of the information provided, we assume no liability for any errors or omissions. Articles may reflect personal opinions and assessments, which may change over time. External links lead to third-party content for which we assume no responsibility.

tax return quote

Financial advisory that moves with you.

Call us Get your Quote
Loading…