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

Context

In a nutshell

• Tax at source in Switzerland for frontier workers: retained only in Switzerland.
• New Frontier Agreement: signed on 23/12/2020, effective from 1 January 2024.
• Italian-Swiss Convention against Double Taxation: signed 9 DECEMBER 1976.

Living in Lasnigo and working in Ticino as a border worker

Cross-border work is a reality that is increasingly present in Ticino, with many Italian citizens working in Switzerland and maintaining their residence in Italy. In Lasnigo, a municipality in the province of Como, there are many examples of people who have chosen to live and work in Ticino.

Tax at source in Switzerland for frontier workers

In Switzerland, the company paying a border employee is only required to withhold the tax at source in Switzerland. This means that the Italian tax is not withheld in Switzerland, but will be paid in Italy, at the time of filing the tax return.

New Frontier Agreement

On 23 December 2020, the New Frontier Agreement was signed, which will enter into force on 1 January 2024. This agreement aims to simplify the lives of border crossers and reduce tax complexities. In particular, the agreement provides for the creation of a single tax return for border workers, who will only have to file a tax return in Italy.

Italian-Swiss Double Taxation Convention

The Italian-Swiss Double Taxation Convention was signed on 9 December

Operational details

Tax at source in Switzerland for frontier workers is only withheld in Switzerland. The New Frontier Agreement was signed on 23/12/2020 and will be in force from 1 January 2024. The Italian-Swiss Double Taxation Convention was signed on 9 DECEMBER 1976.

Who is a frontier worker in Ticino? 📊 A border worker is a citizen of an EU country who lives in Switzerland and works in Switzerland. In this case, a border worker who lives in Lasnigo (municipality of Italian Switzerland) and works in Ticino (Swiss canton) can enjoy some tax breaks.

Taxes and fees in Switzerland and Italy Tax at source in Switzerland for frontier workers is only withheld in Switzerland. This means that the frontier worker will not have to pay taxes in Italy on their work income. However, if the frontier earns income also in Italy, it may have to pay taxes also in Italy, depending on the applicable tax convention.

The Italian-Swiss Double Taxation Convention The Italian-Swiss Double Taxation Convention was signed on 9 DECEMBER 1976. This convention provides that income earned in Switzerland by an Italian citizen is exempt from tax in Italy, provided that the income has already been taxed in Switzerland.

Concrete example: a border worker who earns CHF 60,000 per year in Ticino and lives in Lasnigo will not have to pay taxes in Italy. However, if the frontier gains

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 from Lasnigo working in Ticino, you can enjoy a good quality of life and an enchanting natural environment. Ticino is a region with a thriving economy and a rich culture, offering many opportunities for work and leisure. For practical information on journey times and living costs, check out our salary calculator.

Life in Lasnigo is characterized by a protected natural environment and a mild climate. The resort is surrounded by mountains and valleys, offering numerous opportunities for hiking and outdoor activities. The journey time from Lasnigo to Lugano is about 30-40 minutes by car, while the cost of living is overall lower than in large Swiss cities. 📊

For example, the price of a 3-bedroom apartment in Lasnigo is around CHF 1,800 per month, while in Lugano the price is around CHF2,500 per month. This means you can have more space and a quieter environment in Lasnigo, compared to Lugano. 💡

In addition, Ticino offers many job opportunities, especially in the tourism sector and in high-end production. According to the Swiss Confederation, Ticino had an unemployment rate of 2.4% in 2020, the lowest in Switzerland. ⚠️

However, it is important to take into account border regulations. According to Swiss law, frontier workers must be employed under a permanent employment contract within 12 months of the date