Living in Appiano Gentile and working in Ticino as a cross-border commuter (cross-border guide)

Context

In a nutshell

• Italy avoids double taxation with the tax credit (EC framework of 730).
• The New Frontier Agreement was signed on 23 DECEMBER 2020, effective from 1 JANUARY 2024.

Who is a frontier worker?

A frontier worker is a Swiss national who lives in Switzerland and works in Italy, or vice versa. This type of worker is subject to the tax regulations of both countries, but can benefit from certain benefits.

Living in Appiano Gentile and working in Ticino as a border worker

Appiano Gentile is a "comune" (municipality) in the Province of Como in the Italian region Lombardy, located about Many of its residents work in Switzerland, particularly in the Canton of Ticino, thanks to the New Frontier Agreement signed in 2020.

• Italy avoids double taxation with the tax credit (EC framework of 730).
• The New Frontier Agreement was signed on 23 DECEMBER 2020, effective from 1 JANUARY 2024.

Concrete example

Let's imagine an Italian citizen who lives in Appiano Gentile and works in Switzerland as a border worker. He earns 60,000 Swiss francs per year, corresponding to about 45,000 euros per year. Thanks to the tax credit for double taxation, Italy grants him a credit of 10,000 euros per year.

Operational Checklists

To be recognized as a border worker and benefit from tax breaks, you must:

• Reside in Switzerland or Italy
• Work in one of the two countries
• Comply with the tax regulations of

Operational details

Taxed at source on income from work: ONLY withheld in Switzerland for border workers.

The New Frontier Agreement, signed on 23 December 2020 and in force from 1 January 2024, introduces new rules for border workers working in Ticino. The Italian-Swiss Double Taxation Convention was signed on 9 December 1976. Double taxation is avoided with the tax credit (EC framework of 730).

The New Frontier Agreement introduces new rules for frontier workers working in Ticino. The New Frontier Agreement was signed on 23 December 2020, effective from 1 January 2024. This agreement modifies the taxation rules for border workers working in Ticino and residing in Italy.

For example, if a border worker works in Lugano and resides in Appiano Gentile, they may be subject to taxation in Switzerland. However, thanks to the New Frontier Agreement, it may be possible to avoid double taxation by using the tax credit.

Here are some concrete examples:

• A frontier worker works in Lugano and resides in Appiano Gentile, earns CHF 50,000 per year and has a family with two children. It may be subject to taxation in Switzerland and Italy. However, thanks to the New Frontier Agreement, it may be possible to avoid double taxation by using the tax credit.
• A frontier worker works in Bellinzona and resides in Como, earns CHF 40,000 per year and has no children. May be subject to taxation in Switzerland

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 working in Ticino, it is important to understand the new rules introduced by the New Frontier Agreement, signed on 23 December 2020, in force since 1 January 2024. This agreement was concluded between Switzerland and Italy to simplify and harmonise tax rules for cross-border workers.

The tax credit (EC framework of 730) avoids double taxation, i.e. taxation by both countries of residence and employment. For example, if a border worker works in Switzerland and lives in Italy, the CE framework of 730 allows him to deduct tax income in Switzerland from that in Italy.

The New Frontier Agreement introduces new rules for frontier workers working in Ticino. The main novelties are:

• The possibility of deducting tax income in Switzerland from that in Italy for cross-border workers who have a tax residence in Switzerland and work in Italy.
• Simplification of the procedures for requesting the tax credit, which can be submitted directly to the Revenue Agency.
• The possibility of opting for taxation in Italy for cross-border workers who have a tax residence in Italy and work in Switzerland.

For example, if a border worker works in Switzerland and lives in Appiano Gentile, they can deduct tax income in Switzerland from that in Italy. In this case, the border worker could opt for taxation in Italy, paying the tax on

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