Coworking and shared workspaces in Lugano (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement is in force from 1 January 2024.
• Switzerland is NOT an EU/EEA member.
• The AVS/AI/IPG contributions for the employee are 5.3%.
• Taxation takes place at source in Switzerland.

Key facts

• What: Shared workspaces and border taxation
• When: New agreement from 1 January 2024
• Where: Canton Ticino
• Who: SECO, SEM, USTAT, UFSP/BAG, SUVA, INPS, Revenue Agency, MEF, BFS, AFC/ESTV
• AVS contribution: 5.3% employee
• AD/AC contribution: 1.1% (cap CHF 148'200)
• IRPEF 1: 23% up to €28,000
• Income tax 2: 35% between €28,001 and €50,000
• Income tax 3: 43% over €50,000

The use of shared workspaces in Lugano represents a flexible solution for professionals working in Ticino, including frontier workers. Managing your business requires a clear understanding of the current regulatory framework. The New Frontier Agreement, signed on 23 December 2020, is fully operational from 1 January 2024, following the Italian ratification with Law 83 of 13 June 2023. For those who evaluate teleworking or the use of shared hubs, it is essential to consider that Switzerland is NOT an EU/EEA member, a factor that influences mobility dynamics and administrative management. Bodies such as SECO, SEM, USTAT and the Federal Tax Administration (AFC/ESTV) define the perimeter within which to move. The structure of Swiss contributions is precisely defined: the employee pays 5.3%

Operational details

The adoption of shared workspaces makes it possible to optimise productivity, but requires attention to the social security and tax implications. LAMal, or health insurance, is mandatory for those working in Switzerland, with the right of option for G border workers and deductibles for adults between CHF 300 and CHF 2,500. It should be remembered that tax rates and contributions, including those for retirement, are established by federal or cantonal laws and managed by the AFC/ESTV, not by the UFAS or the BFS, which deals exclusively with collecting statistical data. For those who work in coworking, the stability of the connection and the availability of network services are standard, but the management of the tax residence remains a crucial point. The Convention to avoid double taxation between Italy and Switzerland, signed on 9 December 1976, remains the pillar of reference. The transition to working remotely or in shared spaces does not exempt the worker from compliance with the procedures provided for the tax at source. A border worker using a shared office in Lugano must ensure that his position is in line with the employer, especially with regard to tax and social security limits related to teleworking. The correct management of the CE framework in 730 makes it possible to avoid double taxation, making the tax credit the main instrument to compensate for what has already been paid in Swiss territory. Compliance with INPS and the Agency

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

For those intending to establish their work base in a coworking space in Lugano, the operational procedure requires order. First, it is necessary to verify the compliance of your work permit (Permit G) with the activities performed remotely. Subsequently, you must analyze your payslip to ensure that deductions (5.3% AHV, 1.1% ALV) are applied correctly according to current regulations. If working in a hybrid mode, it is essential to consult your employer to define the percentage of time spent in Swiss territory versus Italy, as this affects taxation. Regarding social security, the LPP pension contribution (7–18%) must be monitored annually, especially upon reaching the age of 25. To best manage your monthly net income, we recommend using the tax calculator available on our portal, which allows you to simulate the impact of different IRPEF rates (23%, 35%, 43%) and Swiss deductions. Documentation regarding the tax credit must be kept carefully for your Italian tax return. Remember to periodically check your LAMal status, as the choice between various insurance models can significantly affect the cost of living. Planning your commute, especially for those crossing the main border points daily, requires careful time management, considering traffic fluctuations. If you are evaluating how to optimize your pension or tax situation, accessing the dedicated tools on the site represents the first step toward autonomous and informed management. Do not forget to update your status in case of changes in residence or significant contractual variations, always maintaining an open line of communication with the competent authorities. Administrative clarity is the cross-border worker's best ally in Ticino. To delve deeper into the calculation of your net salary, use the salary calculator for a precise estimate of taxes and contributions.