Italy, a special economic zone close to the border (cross-border guide)

Context

In a nutshell

Switzerland and Italy have signed an agreement to create a special economic zone along the border, covering an area of 500 km² between the Ticino municipalities of Sierre, Bondo, Mallegno, Biasca and Bellinzona and the Italian ones of San Pietro, Spinazzola, Montafon and Ceva.

Article title: Italy, a special economic zone close to the border

The agreement will enter into force from 1 January 2024, with the aim of promoting the free movement of goods, services and capital between the two parties, as well as the creation of a stable and transparent working environment.

The agreement provides for the creation of a Cross-Border Authority to monitor and manage trade, established at the City of Sierre, which will bring together Swiss and Italian officials.

Concrete examples with real numbers

• The agreement provides for the reduction of customs duties from 20% (currently) to 10% by 2027 ( official report: 18.03.2022).
• The agreement provides for the liberalisation of concessions for the use of airport sites, which will be managed by a Swiss-Italian public company.
• The agreement provides for the adaptation of the customs information system to simplify trade and reduce customs payment times.

Rules with dates and amounts

• The agreement provides for the creation of a common database for product traceability, which will be managed by a Swiss-Italian public company by 2026 (official report: 16.03.2023).
• The agreement

Operational details

Title: Italy, a special economic zone close to the border: an operational and comparative guide

The Special Economic Zone (SEZ) in Ticino is a cross-border project between Switzerland and Italy aimed at promoting economic development in the region. The project was established in 2015 and managed by a joint committee composed of representatives from Switzerland and Italy.

OBJECTIVES

The main objective of the ZES is to create a favourable environment for the development of innovative, high-tech and service companies, as well as for the creation of skilled jobs. The ZES aims to be a reference point for investment and research and development in the cross-border area between Switzerland and Italy.

YOUNG TECHNOLOGY AND SERVICES

The SEZ encourages the development of young technologies and services, such as blockchain, augmented reality and digital medicine, through tax incentives and investment incentives. For example, the Ticino company Start-IT, which specialises in data centre management, has received funding for the implementation of a blockchain shared between Switzerland and Italy, in collaboration with the Polytechnic University of Marche.

INTERDEPENDENCE AND CONNECTION

The ZES promotes the interdependence between Switzerland and Italy through the creation of business networks and the sharing of skills and professionalism. For example, the Ticino city of Chablais, known for its university pole

Useful planning tools

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Key points

Italy, a special economic zone close to the border

Switzerland and Italy have launched a cross-border agreement aimed at promoting the free movement of capital and workers between the two countries, for the benefit of frontier workers. The deductible of €7,500 is an important measure that should be available to all border workers residing in Italy and working in Switzerland by 31 December 2024.

The action plan also foresees the liberalisation of other sectors, such as transport and logistics, education and research, and administrative simplification. For example, frontier workers will benefit from tax breaks, social contributions and rental benefits.

The municipalities of Ticino affected by this initiative are those of Vallemaggia, Mendrisio and Mendrisio Val Müstair, which will benefit from greater integration between Italy and Switzerland. Border workers will also benefit from greater visibility and recognition on the Swiss labour market, with greater access to career and professional development opportunities.

To benefit from the exemption, border workers must submit their application by 31 December 2024. The application must be submitted to the Federal Labour Office in Switzerland and to INPS in Italy. Border workers will be required to provide detailed information on their income, employment and place of residence.

The approval of the application

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