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Franco-Swiss agreement for the binational Basel-Mulhouse EuroAirport

April 2017

Franco-Swiss agreement for the binational Basel-Mulhouse EuroAirport

On 23 March 2017 in Paris, France and Switzerland signed an intergovernmental agreement that clarifies and defines the tax regime governing the binational Basel-Mulhouse EuroAirport, bringing to an end a dispute that has lasted for over two years.

The French and Swiss authorities reached an agreement on the principles of non-double taxation of companies and compensation of local authorities for the loss of tax receipts. In concrete terms, the document stipulates that Swiss firms will be subject to Swiss VAT, and it defines how tax receipts from companies should be shared between France and Switzerland. Thus, firms on the Swiss side will also be subject to French income tax and Swiss tax on capital, but will be exempt from the main French associated and local taxes.
Having benefited from binational status since its creation in 1949, the Basel-Mulhouse EuroAirport, established on French soil, had become a source of conflict regarding the tax regime governing it. The new agreement removes this misunderstanding and source of tension between the two countries following fruitful negotiations. "It's an important step towards ensuring the continuation of a flourishing cross-border collaboration initiated in 1949 between France and Switzerland," declared the Senator of the Haut-Rhin Department, Jean-Marie Bockel.

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