Living in Biandronno and working in Ticino as a border worker: what changes? (cross-border guide)

Context

In a nutshell The new agreement between Switzerland and Italy came into force on 1 January 2024. Frontier workers are exempt from income tax at source. ## Key facts Tax at source: Not applicable for frontier workers' earnings. New agreement: signed on 23 December 2020, effective from 1 January 2024. Ratification IT: Law 83 of 13 June 2023. Deductible: €10,000 for new frontier workers. The new agreement between Switzerland and Italy introduced some changes for frontier workers. Border workers who live in Biandronno and work in Ticino are exempt from income tax at source. What changes for the border crossers of Biandronno? Border workers who live in Biandronno and work in Ticino are exempt from income tax at source. This means that they will no longer have to pay tax on their pay. For example, if a frontier worker earns €50,000 a year working in Ticino, they will not have to pay tax at source on thatamount. Concrete examples Suppose a border worker from Biandronno earns €40,000 per year working in Ticino. Prior to the entry into force of the new agreement, he would have had to pay the tax at source of around €6,000 per year. After the new agreement comes into effect, you will no longer have to pay thattax. Comparisons between practical scenarios | Scenario | Income amount | Tax at source | | -- - | -- - | -- - | | Before Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio (district). Sant'Antonio

Operational details

Practical analysis

• Border workers living in Biandronno and working in Ticino can benefit from the €10,000 deductible, as provided for by the federal law of 17 July 2023.
• The exemption does not only apply to new frontier workers, but also to those who have already worked in Switzerland before 17 July 2023, as specified in the ordinance of 18 July 2023.
• Excess is calculated on the basis of taxable income, which includes salary, allowances and other income, but excludes social benefits and unemployment benefits.
• Border workers who live in Biandronno and work in Ticino can also benefit from the exemption for health care benefits, as provided for by the federal law of 17 July 2023.
• The health care benefit allowance is calculated based on taxable income, which includes salary, allowances and other income, but excludes social benefits and unemployment benefits.

Concrete scenarios

• A frontier worker living in Biandronno and working in Ticino can benefit from the deductible of €10,000, if his taxable income is less than €50,000.
• For example, a frontier worker who earns €40,000 per year in Ticino and lives in Biandronno can benefit from the €10,000 deductible.
• The frontier worker can use the deductible to reduce his taxation in Switzerland, which can reach 40% of the taxable income.
• A frontier worker who lives in

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

Action

• Border workers who live in Biandronno and work in Ticino must check if they are exempt from income tax at source.
• Border crossers can use the €10,000 deductible to reduce their taxation in Switzerland.
• It is important to note that the €10,000 deductible is only applicable to employment income received in Switzerland, while other income, such as capital or business income, is subject to taxation in Switzerland.

CTA

• Use our calculator to check if you are exempt from income tax at source.

Concrete examples

• A frontier worker living in Biandronno and working in Lugano earns €50,000 per year. If you apply the deductible of €10,000, your taxable income in Switzerland will be €40,000, and the taxation will be around €4,000.
• Another frontier worker living in Biandronno and working in Bellinzona earns €80,000 per year. If you apply the deductible of €10,000, your taxable income in Switzerland will be €70,000, and the taxation will be around €7,000.

Regulations

• The federal law on the taxation of labour income (LTF) states that labour income received in Switzerland is subject to taxation in Switzerland.
• The Ticino Law on Labour Income Taxation (LTF-TI) states that border workers living in Ticino and working in Switzerland can use the €10,000 deductible to reduce their taxation in Switzerland.
• The