Living in Carbonate and working in Ticino: advantages and disadvantages (cross-border guide)

Context

In a nutshell

• New tax agreement 2024: tax at source withheld only in Switzerland.
• Frontier workers exempt from €7,500, transitional regime 2024–2033.
• New frontier workers: deductible €10,000.

Key facts

• What: New 2024 tax deal.
• When: 1 January 2024.
• Where: Switzerland and Italy.
• Who: Frontier workers residing in Italy.
• Amount: €7,500 exemption for old frontier workers, €10,000 for new frontier workers.

The new 2024 tax agreement states that income tax at source is only withheld in Switzerland. Frontier workers exempt from €7,500 are subject to a transitional regime 2024–2033, while new frontier workers benefit from a deductible of €10,000.

Key facts

• What: Frontier workers residing in Lugano.
• When: Before 17 July 2023.
• Where: Lugano, Ticino.
• Who: Old and new frontiersmen.
• Amount: Not yet specified.

Border workers residing in Lugano can enjoy exemptions and deductibles thanks to the new 2024 tax agreement. For example, a worker with an income of €60'000 could benefit from a reduction of the tax at source of €2'700 (€60'000 - €7'500 = €52'500 x 5.2% = €2'736).

Key facts

• What: Connections between Lugano and Locarno.
• When: Before 17 July 2023.
• Where: Lugano and Locarno, Ticino.
• Who: Frontier workers residing in Lugano.
• Amount: Not yet specified.

Border workers residing in Lugano can enjoy efficient connections between the locality

Operational details

The new 2024 tax agreement introduces significant changes for border workers residing in Carbonate. The reduction of tax at source and the introduction of exemptions and deductibles can have a significant impact on the daily lives of these individuals. It is important to carefully consider the advantages and disadvantages of this new arrangement and how it may affect your personal situation.

In this context, it is essential to understand the rules and regulations governing the lives of frontier workers. The article explores the connections between Carbonate and the rest of Ticino, including journey times and the cost of living. In addition, an overview of the recommended areas for border crossers and the advantages and disadvantages of transferring to this location is presented.

Carbonate is a strategic location in the Canton of Ticino, with easy access to major cities such as Lugano and Bellinzona. The journey time from Carbonate to Lugano is about 20-30 minutes by car, while the cost of living is slightly lower than in the larger cities of the Canton. According to 2022 data, the price of a 3-4 bedroom apartment in the Carbonate area is around CHF 450,000-600,000.

However, it is important to also consider the negative aspects of life in Carbonate. For example, the locality is subject to periods of high humidity and fog, which can negatively affect the health of border crossers. In addition, the

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

To take advantage of the incentives offered by the new 2024 tax agreement, border workers residing in Carbonate must carefully consider their options. You can opt for the G permit, which allows you to work in Switzerland, or the B permit, which guarantees residence in Switzerland. In addition, it is important to understand the operation of health insurance (LAMal) and the regulations of the AVS and the LPP.

The G permit is particularly interesting for those who wish to work in Switzerland without having to leave their residence in Carbonate. Under Swiss law, border workers can obtain a G permit if they have an employment contract of at least 6 months with a Swiss company. For example, if a frontier worker resides in Carbonate and works in Lugano, they can obtain the G permit and continue to work in Switzerland.

However, it is important to note that the G permit is not automatic and requires an application to the Swiss Confederation. In addition, border crossers with the G permit are subject to an income tax in Switzerland, which can range from 10% to 30% of their annual income.

Alternatively, border workers can opt for the B permit, which guarantees residence in Switzerland. According to the Ticino law of 2020, border workers can obtain the B permit if they have an annual income of at least CHF 40,000 and are able to support themselves and their family. For example, if a frontier worker resides in Carbonate and has an annual income of CHF

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.