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

Context

In a nutshell

• The new tax agreement for Swiss border workers in Italy was signed on 23 December 2020. - The new agreement enters into force on 1 January 2024.

Key facts

• What: New tax agreement for Swiss border workers in Italy
• When: 23 December 2020
• Where: Switzerland and Italy
• Who: Swiss Government and Italian Government
• Amount: Not specified

The new tax agreement for Swiss border workers in Italy was signed on 23 December 2020. The new agreement enters into force on 1 January 2024.

Ticino, in particular, is a very popular region among border workers, thanks to its strategic geographical position and its numerous job opportunities. According to data from the Statistical Office of the Canton of Ticino, in 2020, about 30,000 border workers worked in the Canton of Ticino, representing 10% of the active population of the Canton.

The new tax agreement aims to simplify tax rules for Swiss border workers in Italy, reducing costs and bureaucratic complexities. According to the Italian government, the agreement could lead to savings of around 100 million euros for the years 2024-2028.

For frontier workers, the new agreement means greater flexibility and a reduction in transfer costs. For example, a worker living in Stazzona and working in Lugano could benefit from the new agreement, reducing their relocation costs by around 500-700 euros per year.

Concrete examples

• One

Operational details

The use of the health tax was excluded from the agreement, excellent news for Swiss border workers in Italy who reside in municipalities such as Stazzona, Bellinzona and Lugano. This means that they will no longer have to pay the health tax, which is good news for those who have already paid the tax for the current year.

Swiss border workers in Italy will be entitled to an option for the excess of CHF 10,000, as provided for by the legislation in force from 1 January 2024. This means that they will be able to choose to pay the health tax or opt for the deductible, which will be CHF 10,000 for each year of residence.

The health tax will not be applied to Swiss border workers in Italy, which is great news for those who have already paid the tax for the current year.

The new tax agreement for Swiss border workers in Italy will come into force on 1 January 2024, so it is important that Swiss border workers in Italy are informed about the changes taking place. This agreement will apply to all Swiss border workers in Italy, so it is important that they are informed of any changes that occur.

Here is a concrete example of how the CHF 10,000 deductible works: if a Swiss border worker in Italy resides in Stazzona and works in Ticino, they can opt for the CHF10,000 deductible. This means that you will no longer have to pay the health tax for the current year, good news for those who have already paid the

Useful tools to protect your net income

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

Key points

On January 1, 2024, the new tax agreement for Swiss border workers in Italy will come into force, which could have a significant impact on your finances. To learn more about the advantages and disadvantages of this agreement, check out our income calculator.

To understand how to manage your tax at source, check out our guide. In it, you'll find detailed information about tax filing requirements and deadlines.

The new tax agreement provides for Swiss border workers in Italy to pay a 10% tax at source on their labour income. This means that, as of 1 January 2024, your working income will be taxed in Italy, rather than in Switzerland.

For example, if you work as an employee in an Italian company and earn CHF 60,000 per year, the source tax in Italy would be CHF 6,000 (10% of CHF 60,000). However, if you work as a freelancer, you may be subject to a higher tax rate.

It is important to note that the tax agreement also provides for the possibility of deducting the costs of travel and residence in Italy. For example, if you spend 10 days a year in Italy for work, you may be able to deduct travel and accommodation costs.

To learn more about border crossings and how to manage your tax at source, check out our crossings map and guide.

Operational Checklists

Before the tax agreement goes into effect, make sure to:

• Check