Living in Courmayeur and working in Valais as a border worker (cross-border guide)

Context

In brief - New Frontier Agreement signed on 23/12/2020, in force from 1 January 2024 - Exemption €7,500 for old frontier workers, transitional regime 2024–2033 - Excess €10,000 for new frontier workers ## Key facts - Italy-Switzerland double taxation agreement : signed on 9 December 1976 - Tax at source: withheld only in Switzerland for frontier workers - Tax credit: avoids double taxation in Italy The New Frontier Agreement, signed on 23 December 2020 and in force from 1 January 2024, introduces new rules for frontier workers living in Switzerland and working in Italy. Exempt persons and border crossers with an income of less than €10,000 are exempt from source tax in Switzerland. # ## Transitional regime for old border workers Former border workers who reside in Switzerland and work in Italy will be able to enjoy a transitional regime until 2033. This scheme provides an income benefit of up to €7,500. For example, a border worker who works in Lugano and resides in Locarno will be eligible for this scheme if his annual income is less than €7,500. # ## Deductible for new frontier workers The new frontier workers who move to Switzerland to work in Italy will have a deductible of €10,000. This means that they will not have to pay source tax in Switzerland if their annual income is less than €10,000. A concrete example could be a frontier worker who moves to Bellinzona to - The Italian Revenue Agency - The Municipality of Locarno - The Municipality of Lugano - The Municipality of Bellinzona # # # Conclusions In summary, the New Frontier Agreement introduces new rules for border workers who reside in Switzerland and work in Italy. Exempt persons and border crossers with an income of less than €10,000 are exempt from source tax in Switzerland. It is important to take into account the information and concrete examples presented in this article to understand how the New Frontier Agreement works.

Operational details

Source tax is a fundamental aspect to consider for border workers living in Switzerland and working in Italy. In this article, we'll explore how source tax works for frontier workers, exempt people, and workers with an income of less than €10,000.

In Switzerland, source tax is withheld only for frontier workers, while the tax credit avoids double taxation in Italy. This means that if a frontier worker lives in Courmayeur and works in Valais, the source tax will only be withheld in Switzerland, while the tax credit will be granted in Italy.

Exempt persons and border crossers with an income of less than €10,000 are exempt from source tax in Switzerland. For example, if a frontier worker has an income of €8,000 and lives in Bellinzona, they will be exempt from source tax in Switzerland.

However, it is important to note that the federal law of 17 December 2020 on source tax reform introduced some significant changes. According to the law, frontier workers with an income of at least €15,000 are subject to source tax in Switzerland, regardless of their income in Italy.

To avoid double taxation, you must apply for the tax credit in Italy. The tax credit may be claimed by 31 December of the year following the year in which the income was received. It is important to note that the tax credit cannot be claimed if the

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Key points

For new frontier workers, the deductible is €10,000. Exempt persons and border crossers with an income of less than €10,000 are exempt from source tax in Switzerland. It is important to consult the New Frontier Agreement for up-to-date information on its application.

If you decide to move to Courmayeur to work in Valais as a border worker, it is essential to understand the applicable tax regulations. The New Frontier Agreement, signed in 2004, regulates the working and residence conditions of border workers in Switzerland.

The €10,000 deductible for new frontier workers is one of the main measures to avoid double counting. For example, a frontier worker with an income of €15,000 per month in Valais could be exempted from source tax if his income in Italy is less than €10,000. However, it is important to note that the requirements to be considered exempt are very specific and may vary according to individual conditions.

Another important consideration is the choice of place of residence. If you decide to move to Courmayeur, you need to check whether your municipality of residence is considered “borderland” under Swiss regulations. Some municipalities in Ticino, such as Locarno or Ascona, are considered "borderers" and can offer tax advantages to borderers.

Here is an operational checklist to help understand the tax regulations for border workers in Switzerland:

• Check the

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