How much does a border welder earn in Ticino? (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement entered into force on 1 January 2024.
• Switzerland and Italy signed the Double Taxation Convention on 9 December 1976.
• Border workers in Ticino are subject to tax at source in Switzerland.

How much does a border welder earn in Ticino?

The border welder in Ticino is a professional who works in Switzerland, but resides in Italy. To understand how much you earn, we need to consider several factors, such as your experience, qualification, and salary.

The remuneration of the border welder According to the Double Taxation Convention between Switzerland and Italy, signed on 9 December 1976, frontier workers in Switzerland are subject to tax at source in Switzerland. The tax at source is 20% for salaries below 120,000 Swiss francs per year and 30% for salaries above 120,000 Swiss francs per year.

Concrete example Suppose a border welder in Ticino earns 80,000 Swiss francs per year. According to the Double Taxation Convention, the source tax in Switzerland would be 20% (80,000 x 0.20 = 16,000 Swiss francs).

The situation in some Ticino municipalities In some municipalities of Ticino, such as Lugano, Mendrisio and Bellinzona, the situation of border welders is particularly interesting. In fact, these municipalities offer a number of incentives to attract foreign workers, such as the possibility of obtaining a

Operational details

Key facts

• Tax at source in Switzerland: 5.3% AVS/AI/IPG for employees.
• AD/AC contribution 1.1% for capital up to CHF 148,200.
• LAINF 0.7-1.5% and LPP 7-18% by age group.
• Italian personal income tax: 23% up to €28,000, 35% €28,001-50,000, 43% over €50,000.

Gross and net profit of a border welder in Ticino

Let's consider a concrete example of a border welder who works in Ticino and resides in Italy. Suppose your gross monthly income is CHF 8'000, with a contribution of CHF 1'500 for Swiss insurance. His monthly net income would be CHF 6,500.

Taxation in Switzerland

The border welder in question is subject to taxation in Switzerland, which provides for a 5.3% AVS/AI/IPG tax at source for employees. In addition, the AD/AC contribution is 1.1% for capital up to CHF 148'200. Suppose the border welder has an income of CHF 4'000, which will be taxed at 5.3% for a total of CHF 212. The AD/AC contribution will be 1.1% for a total of CHF 164.

Taxation in Italy

The border welder is also subject to taxation in Italy, which provides for a 23% tax for incomes up to €28,000. Suppose the border welder has an income of €20,000, which will be taxed at 23% for a total of €4,600.

Comparison of practical scenarios

Here is a comparison between practical scenarios for the border welder in question:

• If you only work in Switzerland, your

Useful planning tools

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

Key points

Action

• Border workers in Ticino can consult the SECO (Contributions Payment Service) website for information on their tax position, based on their nationality and resident status.
• You can use the salary calculator on the Frontaliere Ticino website to estimate your income and better understand how taxation works in Switzerland.
• Border workers in Ticino can also consult the website of the Municipality of Bellinzona, which provides information on residency requirements and tax regulations.
• In addition, you can consult the website of the Chamber of Commerce of Lugano, which provides information on tax incentives for border entrepreneurs.

Taxes in Switzerland

• In Switzerland, taxes are calculated based on the individual's income and nationality.
• Border workers in Ticino are considered to be resident in Switzerland if they reside in the Canton for at least 183 days per year.
• Depending on their nationality, frontier workers may be considered to be resident in Switzerland or another country, which may affect their tax position.
• For example, if an Italian frontier worker resides in Ticino for at least 183 days per year, they will be considered resident in Switzerland and will be subject to Swiss taxes.

Salary calculator

• The salary calculator on the Frontaliere Ticino website allows you to estimate your income based on the information provided.
• It is possible