Living in Castelveccana and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• Withholding tax withholding in Switzerland
• Exemption for old border guards of CHF 7,500
• New Frontier Agreement signed on 23 December 2020

Living in Castelveccana and working in Ticino as a border worker

If you are a border worker living in Castelveccana, in the province of Varese, and working in Ticino, it is important to know the rules and regulations that govern your situation. On 23 December 2020, a New Frontier Agreement was signed which introduced some significant innovations.

# Withholding tax in Switzerland

When a border worker works in Switzerland, they are subject to withholding tax. This means that the Swiss employer withholds a portion of the amount received as a social security contribution. In Italy, the frontier worker is considered a tax resident and subject to income tax. It is important to note that withholding tax is not a tax transaction, but rather a pension mechanism.

Exemption for old frontier workers

For border workers who worked in Switzerland before 2013, an exemption of CHF 7,500 is provided. This exemption is only applicable to border workers who have worked in Switzerland for at least 12 months and have received an annual income of at least CHF 75'000. It's important to check if you qualify for this exemption.

New Frontier Agreement

The New Frontier Agreement signed on 23

Operational details

Living in Castelveccana and working in Ticino as a border worker

The use of a border crossing in Ticino is conditioned by several factors, including the distance from the workplace, the cost of living and the recommended areas. The border worker working in Ticino must also consider the tax at source and the withholding tax in Switzerland.

Distance and travel time

The distance between Castelveccana and the municipalities of Ticino varies from 30 to 120 km, depending on the workplace. For example, if the border crossing works in Lugano, the route can be about 60 km and take about 45-60 minutes, also considering the traffic. If, on the other hand, you work in Bellinzona, the route can be about 100 km and take about 1-2 hours.

Cost of Living

The cost of living in Ticino is generally higher than in Castelveccana. For example, the price of an apartment in the centre of Lugano can range from 2,000 to 4,000 CHF per month, while in Castelveccana the price of an apartment can range from 800 to 1,500 CHF per month.

Recommended areas

The recommended areas for a border worker working in Ticino are those that offer a balance between cost of living and distance from the workplace. Some of the most recommended areas are:

• Lugano: offers a range of work options and a moderate cost of living.
• Bellinzona: offers a range of job options and a higher cost of living.
• Locarno: offers a range of work options and a cost of living

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Key facts

• What: Living in Castelveccana and working in Ticino as a border worker
• When: From 1 January 2024
• Where: Ticino
• Who: Frontiersmen
• Amount: CHF 7,500

Living in Castelveccana and working in Ticino as a border worker: what it means for the inhabitants of this Lombard municipality who wish to work in Italian Switzerland.

From 1 January 2024, border workers residing in Castelveccana and working in the Canton of Ticino will be able to enjoy a bonus of CHF 7,500 for the year of work carried out. This measure was launched by the Ticino State Council to encourage labour mobility of border workers and combat brain drain to other European regions.

The legislation provides that border workers must reside in Castelveccana and work in Ticino for at least 183 days a year. In addition, they must have an annual gross income of less than CHF 120,000. The bonus will be paid through the direct labour payment (PDL) system.

For border workers who intend to take advantage of this opportunity, it is essential to check whether they meet the requirements of the legislation. Here is a checklist to help determine if you are eligible:

• Residence in Castelveccana
• Work in Ticino for at least 183 days a year
• Annual gross income less than CHF 120'000
• Meet the requirements of the PDL

Border workers who reside in Castelveccana and work in Ticino can also benefit from other benefits, such as the possibility of buying

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.