Refunds to Italy (cross-border guide)
PLR, Centro and Lega ask for suspension of refunds
Contesto
In brief - New offensive on refunds - PLR, Center and League call for suspension - Violation of the principles of free movement - What: Refunds to Italy for cross-border workers in healthcare - When: June 12, 2026 (date of presentation of the motion) - Where: Bellinzona (Ticino) with implications for Milan (Lombardy) - Who: PLR, Center and League - Amount: Not specified, but estimated annual amounts for Ticino: around CHF 120 million (2022 data) Ticino politics is again attacking the issue of 'health taxes' for cross-border workers, contesting the practice of refunds to Italy. PLR, Center and League argue that such practices constitute a violation of the principles of free movement of workers within the European Union (Community law, Regulation (EC) No 883/2004, updated in 2023). The signatories of the motion are asking the Cantonal Government to assess a total or partial suspension of payments to Italy, arguing that such sums could be better used to strengthen the Ticino healthcare system. ### Concrete examples: - Locarno municipality: About 500 cross-border workers living in Locarno pay contributions in Italy, with an estimated impact of CHF 2.5 million per year for the municipality. - Lugano municipality: The city has over 1,200 cross-border workers affected, with an estimated financial impact of CHF 6 million per year. ### Regulations and dates: - Regulation (EC) No 883/2004 (updated in 2023): Establishes the principles for the free movement of workers in the EU. - Agreement between Italy and Switzerland of 1992 (updated in 2019): Regulates relations for cross-border workers, but does not fully clarify the issue of healthcare refunds. ### Operational checklist for the Cantonal Government: 1. Legal assessment: Examine the compatibility of refunds with EU law. 2...
Dettagli operativi
Implications for Cross-Border Workers The new motion introduces an additional point, emphasizing how the tax could specifically impact those working in Switzerland by imposing an extra cost directly tied to cross-border employment. According to its proponents, this could conflict with the principles of free movement of people. For instance, in Chiasso, where many Italian workers commute daily for work, this tax could represent a significant additional burden. Considering that, according to 2022 data, over 60,000 Italian workers cross the border daily to work in Switzerland, with an average income of approximately 55,000 CHF per year, a 1% income tax could result in an additional cost of 550 CHF per year for each worker. - For cross-border workers residing in Campione d'Italia, who already pay taxes in Switzerland on their employment income, this additional tax could represent a double fiscal burden. - Swiss regulations on the free movement of people, in effect since June 1, 2002, ensure the free movement of workers between Switzerland and the EU but do not explicitly protect against discriminatory taxes. > "The free movement of people is a fundamental principle of the bilateral agreement between Switzerland and the EU." - An operational checklist for cross-border workers could include: verifying fiscal residency, calculating taxable income, checking the possibility of deducting the tax as a work-related expense, and consulting with a tax expert. - A comparison of practical scenarios shows that, for a cross-border worker earning 80,000 CHF per year, the tax could amount to 800 CHF annually, while for someone earning 30,000 CHF, the tax would be 300 CHF. This could have a significant impact on personal finances and the choice of workplace. ## Useful tools to protect you...
Punti chiave
Action The deputies ask the State Council to 'assess the total or partial suspension of the refunds, to involve the federal authorities for a formal check of the measure's compatibility with the Free Movement Agreement (FMA) and to initiate the necessary diplomatic steps towards Italy'. This request is motivated by concerns about the impact of refunds on the Ticino labor market, particularly for cross-border workers who travel to Switzerland every day to work, for example in Lugano, Locarno, or Mendrisio. For more information on refunds and free movement, consult our salary calculator. For instance, a cross-border worker earning 60,000 CHF per year could receive a refund of around 10,000 CHF, according to the rules in force since January 1, 2022. However, checking compatibility with the FMA is crucial to avoid potential penalties or payment delays. - The operational checklist for cross-border workers includes: verifying eligibility for refunds, checking required documentation, and submitting the request by the deadline (June 30 of each year). - A comparison of practical scenarios shows that, without refunds, a worker could lose up to 20% of their annual income, considering a 15% income tax and a 5% refund. > “The situation of cross-border workers is complex and requires careful evaluation of current regulations,” as highlighted by sector experts. In this context, the partial or total suspension of refunds could have a significant impact on the finances of cross-border workers and the local economies of Ticino communes, such as Chiasso or Bellinzona, which heavily rely on the influx of foreign workers. Source: tio.ch
Punti chiave
[{"q":"What are ristorni?","a":"Ristorni are payments to Italy for the 'health tax'."},{"q":"Who is affected by the tax?","a":"The tax affects those who work in Switzerland and reside in Italy."},{"q":"What are the deputies asking for?","a":"The deputies are asking for the total or partial suspension of ristorni."}]
Frequently Asked Questions
- What are ristorni?
- Ristorni are payments to Italy for the 'health tax'.
- Who is affected by the tax?
- The tax affects those who work in Switzerland and reside in Italy.
- What are the deputies asking for?
- The deputies are asking for the total or partial suspension of ristorni.