The tax agreement changes the rules in Ticino (cross-border guide)

Context

The tax agreement with Italy came into force in 2024 and seems to have significant effects on the border population in Ticino. According to data from the Cantonal Statistical Office (USTAT), the number of frontier workers in Ticino is steadily decreasing. In the third quarter of 2023, the number of frontier workers was over 80,000, but has since declined by about 1,000 units.

The change is particularly evident in municipalities such as Lugano and Bellinzona, which have been among the most affected by the decrease in the number of border crossers. In 2023, for example, the municipality of Lugano recorded a 10% decrease in the number of border crossings compared to the same period in 2022. On the contrary, the municipality of Bellinzona saw a decrease of 5% in the same period.

The tax agreement between Switzerland and Italy came into force on 1 January 2024 and introduced some significant changes for border crossers. In particular, the agreement reduced the tax rate for employees' income for Italian border workers in Switzerland. The new rate is 50% of income from employment, as opposed to the previous rate of 60%.

However, the tax agreement is not the only cause of the decrease in the number of border workers in Ticino. Other factors, such as economic growth in Italy and reduced transport costs, may have contributed to this trend. In addition, some border crossers may have decided

Operational details

The tax agreement changes the rules in Ticino

The recent tax agreement between Switzerland and Italy is causing a drop in border workers in the canton of Ticino. This agreement could make frontier work less advantageous for frontier people, who may decide to abandon their status and move to Ticino. But what exactly does this agreement mean and how could it affect the lives of border crossers?

The context

Border work is a tax regime that allows citizens of an EU Member State to work in Switzerland without being subject to Swiss taxes. This scheme was introduced to incentivise the mobility of workers between EU Member States and Switzerland.

However, the tax agreement between Switzerland and Italy changed the rules of the game. According to the agreement, border workers working in Switzerland will have to pay Italian taxes on their income, even if they do not reside in Italy. This could make the border crossing less advantageous for border people, who may decide to abandon their status and move to Ticino.

Concrete examples

Suppose we have two frontiersmen, Alice and Bob. Alice works in a company in Lugano and earns CHF 80,000 a year. Bob works at a company in Bellinzona and earns CHF 60,000 a year. According to the tax agreement, both will have to pay Italian taxes on their income.

Alice will have to pay CHF 10,000 in taxes

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

If you are a frontier worker, you might consider moving to Ticino. The Swiss canton offers a high quality of life and a strategic geographical location, with easy access to cities such as Milan and Lugano. In addition, Ticino offers a variety of job and study opportunities, as well as a rich culture and history.

You may wish to consult the Cantonal Statistical Office to find out about the requirements for obtaining a residence permit in Ticino. This office provides detailed information on the application processes and documents required to obtain a residence permit. In addition, you can also consult the website of the Canton of Ticino to find out about the requirements to obtain Ticino citizenship.

If you decide to move to Ticino, you may also consider contacting an immigration lawyer for advice on how to handle your case. A lawyer can help you understand the requirements and procedures for obtaining a residence permit or Ticinese citizenship, and can also help you prepare your application and submit your documents.

Concrete examples

For example, if you are an Italian citizen working in Lugano, you might consider moving to Ticino to enjoy a better quality of life and a strategic geographical location. In this case, you may wish to consult the Cantonal Statistical Office to find out about the requirements for obtaining a residence permit in

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

Source: tvsvizzera.it