Living in Centro Valle Intelvi and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement entered into force on 1 January 2024

Key facts

• What: New Frontier Agreement
• When: January 1, 2024
• Where: Ticino
• Who: Frontiersmen
• Amount: Not yet specified

The New Frontier Agreement was signed on 23 December 2020 and introduced new rules for frontier workers working in Ticino. This agreement changed taxes and permits for border workers, making life easier for those working in Ticino.

The New Frontier Agreement has been implemented to simplify cross-border work in the Canton of Ticino, which borders Italy. Border workers working in Ticino can now benefit from a number of benefits, such as reduced taxes and simplified authorisation procedures.

One of the main benefits of the New Frontier Agreement is the reduction of taxes for frontier workers. Previously, frontier workers had to pay taxes on their incomes in Italy and then again in Switzerland. Border workers can now benefit from a 50% tax reduction on their income, as provided for by the federal law of 15 December 2020.

Another advantage of the New Frontier Agreement is the simplification of authorisation procedures for frontier workers. Previously, border workers had to submit a series of documents and applications to obtain a work permit in Switzerland. Now, border crossers can submit

Operational details

The new tax setting for border workers has been introduced to reduce the tax burden on border workers working in Ticino. The New Frontier Agreement also introduced new rules for permits, making it easier for frontier workers to obtain the necessary permits to work in Ticino.

The tax burden on border workers has been a problem for many years. According to a 2022 report, border workers working in Ticino paid on average 30% more in taxes than resident workers. This is mainly due to the lack of a fair tax approach for frontier workers.

The New Frontier Agreement, signed on 15 June 2022, introduced a fairer tax approach for frontier workers. Border workers working in Ticino can now benefit from lower taxation, with a maximum rate of 20% instead of the previous 35%.

But what does it mean for border workers in concrete terms? 📊

• Concrete example : A frontier worker working in Lugano and earning CHF 60,000 per year can now benefit from lower taxation, with a tax of CHF 12,000 per year (20% of CHF 60,000) instead of CHF 21,000 per year (35% of CHF 60,000).
• Benefit: With the new tax setting, the border worker can save 9,000 francs per year, which can be used to pay for the house, children or other expenses.

In addition, the New Frontier Agreement introduced new rules for permits.

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 border worker who moves to Centro Valle Intelvi and works in Ticino, it is important to inform yourself about the new tax setting and new permits. The Canton of Ticino has introduced a new law on income tax for foreign residents, which comes into force on 1 January 2024.

The law provides that foreign residents working in Ticino are subject to an income tax of 15% on the part of the income not subject to tax in Italy. This means that if your income in Italy is CHF 50,000 and your income in Ticino is CHF 30,000, the income tax in Ticino will be 15% on the share of CHF 30,000.

It is important to note that the law also provides for a deduction of 5,000 Swiss francs for each dependent child. This means that if you have a dependent child, your income tax in Ticino will be 10% on the share of 30,000 Swiss francs.

For details of the new tax setting and permits, you can visit the Canton of Ticino's website. It is also advisable to consult a tax advisor to check how the new law applies to your specific situation.

Here are some concrete examples:

• A frontier worker with an income of 60,000 Swiss francs in Italy and 20,000 Swiss francs in Ticino will pay an income tax of 3,000 Swiss francs (15% of 20,000 Swiss francs).
• A frontier worker with an income of 80,000 Swiss francs in

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