Living in Tronzano Lake Maggiore and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

Living in Tronzano Lake Maggiore and working in Ticino as a border worker

Switzerland is a country with one of the most stable and richest economies in the world, and Ticino is one of the richest and most competitive regions in Switzerland. Many workers from neighbouring countries such as Italy and France travel to Ticino every day to work, but life as a frontier worker can be complex and expensive. In this article, we will explore the challenges and opportunities of living in Tronzano Lago Maggiore and working in Ticino.

The challenges

Life as a border worker can be expensive, especially considering the distance between home and work, the cost of transport and the possibility of having to pay for accommodation in Ticino. According to 2022 data, the cost of daily transport from Tronzano Lago Maggiore to Lugano is around 30-40 Swiss francs, while accommodation in Ticino can cost up to 1,500 Swiss francs per month.

Opportunities

However, life as a frontier worker can also be advantageous, especially when you consider the possibility of earning a higher salary in Ticino. According to 2022 data, the average salary in Ticino is about 6,500 Swiss francs per month, while in Italy it is about 3,500 euros per month.

Concrete examples

A concrete example of life as a border worker is the case of a worker who lives in Tronzano Lago Maggiore and works in Lugano. The worker earns about 6,000 Swiss francs per month and spends about 500

Operational details

Italian border workers living in Tronzano Lago Maggiore can work in Ticino, thanks to the New Tax Agreement between Italy and Switzerland. Income tax at source is only withheld in Switzerland for frontier workers.

The New Tax Agreement, signed on 21 June 2013, introduced important changes for Italian border workers working in Switzerland. Under the terms of the agreement, income tax at source is only withheld in Switzerland, rather than being withheld in both countries. This means that Italian frontier workers can enjoy more favourable taxation than in the past.

For example, if an Italian frontier worker works in Switzerland and earns 50,000 Swiss francs a year, the income tax at source will be withheld only in Switzerland, instead of also being withheld in Italy. This means that the Italian border crossing will be able to enjoy greater financial liquidity, thanks to the reduction in taxation.

In addition, the New Tax Agreement also introduced the possibility of deducting transport and living expenses in Switzerland from employment income. This means that Italian frontier workers can deduct expenses related to transport in Switzerland, such as expenses for the purchase of a train ticket, and expenses related to stay in Switzerland, such as accommodation expenses.

For example, if an Italian border worker works in

Useful tools to protect your net income

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

Key points

For Italian border workers living in Tronzano Lago Maggiore, working in Ticino is possible thanks to the New Tax Agreement between Italy and Switzerland. This agreement, signed on 21 June 2019, provides for the reduction of the employee income tax rate for Italian frontier workers residing in Switzerland.

Under this agreement, Italian frontier workers residing in Switzerland and working in Ticino can benefit from a reduction in the rate of tax on employee income. The applicable tax rate is 5%, while in Italy the tax rate is 20% for income below 15,000 euros.

Here is a concrete example: if an Italian frontier worker residing in Tronzano Lago Maggiore earns 50,000 euros per year working in Ticino, his income will be taxed at 5% in Switzerland, while in Italy it would have been taxed at 20%.

The legislation governing the taxation of Italian frontier workers in Switzerland is the Convention between the Swiss Confederation and the Italian Republic to avoid double taxation in the field of income taxes, signed in Rome on 12 July 1938 and amended by the Convention of 21 June 2019.

To benefit from this tax rate reduction, Italian frontier workers must meet certain conditions. Here is an operational checklist:

• Reside in Switzerland;
• Work in Ticino;
• Earning an income from employment;
• Have no other sources

Discover Ticino job offers updated daily: 4,000+ positions from Swiss companies hiring cross-border workers.