Living in Crevoladossola and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024
• Transitional regime for old frontier workers until 2033
• Deductible for new frontier workers of €10,000

Key facts

• What: New Frontier Agreement
• When: January 1, 2024
• Where: Ticino
• Who: Frontiersmen
• Amount: €10,000

Living in Crevoladossola and working in Ticino as a border worker

If you are a citizen of a member state of the European Union and live in Crevoladossola, Switzerland, you may have heard of the New Frontier Agreement. This agreement will come into effect on January 1, 2024 and may have a significant impact on your employment situation.

The New Frontier Agreement is an agreement between Switzerland and the European Union that modifies the rules for frontier workers. Border workers are citizens of a member state of the European Union who work in Switzerland, but are not resident in Switzerland. The new agreement introduces a transitional regime for old frontier workers, which will last until 2033.

The transitional regime provides that former border workers can continue to work in Switzerland without having to obtain a work permit. However, they will be subject to a tighter control regime and will have to register with the competent authority. New frontier workers, on the other hand, will have to obtain a work permit and will be subject to a deductible of €10,000.

But what does it all mean to you? If you are a citizen of a member state of the European Union and

Operational details

Income tax at source is ONLY withheld in Switzerland for frontier workers, thanks to the Italian tax credit that avoids double taxation. The new frontier workers have a deductible of €10,000, while the old frontier workers enjoy an exemption of €7,500 until 2033.

If you want to work in Ticino as a border worker and reside in Crevoladossola, it is essential to understand income tax regulations. Under Italian law, frontier employees are not subject to income tax in Italy, provided they are not resident in Italy.

However, cross-border employees are subject to income tax in Switzerland. Income tax at source is withheld directly from the employer, who then reimburses the tax to the employee. The Italian tax credit avoids double taxation, as the tax paid in Switzerland is recognized as tax already paid in Italy.

The new frontier workers have a deductible of €10,000, while the old frontier workers enjoy an exemption of €7,500 until 2033. It is important to note that the deductible or exemption does not apply to salaries above these amounts.

For example, if a frontier worker has an annual income of €60,000, the income tax in Switzerland will be around €10,000 (€60,000 - €50,000 = €10,000). However, if the frontier worker has an annual income of €40,000, the income tax in Switzerland will be about

Useful tools to protect your net income

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

Key points

To work in Ticino as a border worker, you must obtain a G Permit. This document allows frontier workers to work in Switzerland, without having to be registered on the list of inhabitants of the canton. You can apply to join the list of those entitled to the refund, which allows you to avoid paying the tax at source in Switzerland. This option can be advantageous for those who intend to work in Ticino, but do not reside in the canton.

For example, if you work in Lugano and reside in Crevoladossola, you can request registration on the list of those entitled to refreshments. According to Ticino law, the tax at source in Switzerland is 5% for incomes up to CHF 150,000 per year. If you are on the list, you will not have to pay this tax.

You can also opt for LAMal health insurance. This insurance is mandatory for all workers in Switzerland and covers the costs of care and treatment in the event of illness. LAMal insurance is managed by the State and covers up to 70% of care costs.

To apply for registration on the list of those entitled to the refreshment, you must submit an application to the Council of State of the Canton of Ticino. The application must be accompanied by a set of documents, including identity card, birth certificate and residence certificate.

Here is an operational checklist to request registration on the list of holders

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.