Living in Malonno and working in Graubünden as a border worker: what to know (cross-border guide)

Context

In a nutshell

• New Frontier Agreement: signed on 23 December 2020, effective from 1 January 2024
• Tax at source in Switzerland for frontier workers, withheld only in Switzerland
• Tax credit in Italy to avoid double taxation

Key facts

• What: New Frontier Agreement
• When: December 23, 2020
• Where: Switzerland and Italy
• Who: Ticino Frontiersmen
• Amount: Not specified

The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024. This agreement provides that the tax at source in Switzerland is withheld only in Switzerland, avoiding double taxation. Switzerland has thus amended its tax legislation to comply with international standards of transparency and cooperation.

Key facts

• What: Tax credit in Italy
• When: Not specified
• Where: Italy
• Who: Ticino Frontiersmen
• Amount: Not specified

The tax credit in Italy serves to avoid double taxation. According to Italian legislation, border workers who work in Switzerland and are resident in Italy can apply for the tax credit for taxes paid in Switzerland.

How the New Frontier Agreement works

The New Frontier Agreement provides that the tax at source in Switzerland is to be withheld only in Switzerland. This means that Ticino border workers will no longer have to pay taxes in Italy. However, it is important to note that Switzerland has maintained its tax legislation,

Operational details

Those exempted from the New Frontier Agreement are the old frontier workers, who enjoy an exemption of 7,500francs. The new frontier workers, on the other hand, have a deductible of 10,000francs. This means that if you are a frontier worker with an annual income of CHF 60,000, you may be exempt from paying income taxes in Switzerland, if you live in Malonno and work in Graubünden.

Italy avoids double taxation with the tax credit, which is provided for by the EC framework of 730. This means that if you are a border worker residing in Italy and working in Switzerland, you may be able to claim a tax credit for taxes paid in Switzerland.

To be considered a frontier, you must meet certain conditions. First, you must be an Italian citizen and have an annual income of at least CHF 12,000. In addition, you must have an employment contract in Switzerland and reside in Italy. If you meet these conditions, you may be able to benefit from the exemptions and benefits provided by the New Frontier Agreement.

It is important to note that the New Frontier Agreement entered into force on 1 January 2020 and replaced the old frontier agreement. The new agreement introduced some significant changes, including the allowance of 10,000francs for new frontier workers and the exemption of 7,500 francs for old frontier workers.

If you are a border worker living in Malonno and working in Graubünden, you may have to pay taxes 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

For frontier workers, the New Frontier Agreement represents a significant change in their daily lives. It is important to understand the implications of this agreement and how it may affect their personal and professional situation. In this article, we will explore the details of the New Frontier Agreement and how it can change the lives of Ticino border crossers.

Who are the frontiersmen?

Border workers are workers who reside in a country bordering Switzerland, such as Italy, and work in Switzerland, in this case in the Canton of Graubünden. According to data from the Statistical Office of the Canton of Graubünden, in 2020 there were around 18,000 regularised border workers working in the Canton.

The New Frontier Agreement: what changes?

The New Frontier Agreement was signed in 2020 and replaced the old agreement that had been in place since 2003. This new agreement introduces some important new features for frontier workers:

• The possibility of obtaining Swiss citizenship after 10 years of residence, instead of 12.
• The introduction of a scoring system to assess the quality of applications for citizenship.
• The possibility of obtaining a residence permit of 5 years, instead of 2.

How does the New Frontier Agreement affect the lives of frontier workers?

The New Frontier Agreement can significantly affect the lives of frontier workers. For example:

• The possibility of obtaining Swiss citizenship after 10

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.