Living in Solbiate Arno, working in Ticino: key considerations (cross-border guide)

Context

In a nutshell

• The new border agreement entered into force on 1 January 2024.
• Border workers can work in Ticino without having to pay the tax at source in Italy.
• Italy avoids double taxation with the tax credit.

Living in Solbiate Arno and working in Ticino as a border worker: what to consider

On 1 January 2024, the new border agreement between Italy and Switzerland came into force, opening up new opportunities for cross-border workers. But what exactly does it mean for a border worker who lives in Solbiate Arno and works in Ticino?

Working in Ticino without tax at source

Thanks to the new agreement, border workers can work in Ticino without having to pay the tax at source in Italy. This means that they will not have to pay income tax in Italy, but will be able to benefit from the tax credit in Switzerland.

For example, if a frontier worker works in Ticino and earns 50,000 Swiss francs a year, he will not have to pay income tax in Italy. However, you will need to file your tax return in Switzerland and benefit from the tax credit.

Concrete example: a frontier in Bellinzona

Suppose a frontier worker, who lives in Solbiate Arno, works in Ticino and earns 60,000 Swiss francs a year. His income consists of:

• 40,000 Swiss francs for work in Ticino
• 20,000 Swiss francs for work in Italy

According to the new agreement, the border worker will be able to benefit from the credit

Operational details

Key facts

• What: New border agreement.
• When: 1 January 2024.
• Where: Ticino.
• Who: Frontiersmen.
• Amount: None.

Key facts

• What: Exemption for old border workers.
• When: 2024-2033.
• Where: Ticino.
• Who: Old frontiersmen.
• Amount: €7,500.

Living in Solbiate Arno and working in Ticino as a border worker: what to consider

If you are a border worker residing in Lombardy but working in Ticino, chances are you have already heard about the new border agreement in force from 1 January 2024. But what exactly does this agreement mean for you and your colleagues? In this article, we will explore the details of this new regime and provide you with practical advice on how to deal with your border situation in Ticino.

New border agreement

From 1 January 2024, the new border agreement will replace the old regime. According to this agreement, border workers will no longer have to pay any amount to work in Ticino. This means that you can continue to work in your country without incurring additional expenses.

Exemption for old frontier workers

But what happens to the old frontiersmen? The Agreement between the Government of the Italian Republic and the Confederal Government of Switzerland, signed on 20 June 1996, provides for an exemption for old frontier workers, i.e. those who were already working in Ticino before the entry into force of the 1996 agreement. These workers will benefit from an exemption of up to 7,500

Useful tools to protect your net income

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

Key points

Action

• If you are a frontier worker living in Solbiate Arno and working in Ticino, you have to consider the advantages and disadvantages of this situation.
• Benefits include exemption from tax at source in Italy and the ability to work in Ticino without having to pay tax.
• Disadvantages include the need to pay tax in Switzerland and the possibility of being subject to double taxation if you do not adhere to the tax credit.
• It is important to note that the tax situation may vary depending on specific regulations and individual conditions.

Concrete examples

• A border worker who is in a similar situation may have to pay the tax in Switzerland, but could also benefit from the exemption from the tax at source in Italy if he adheres to the tax credit.
• For example, if a frontier worker earns CHF 50,000 per year and lives in Solbiate Arno, they may have to pay the tax in Switzerland, but they could also benefit from the tax exemption at source in Italy if they adhere to the tax credit.
• According to the Swiss Federal Law of 2010, foreigners working in Switzerland are subject to a federal tax of about 3% of their income.
• However, if the frontier worker adheres to the tax credit, he may be exempt from the tax in Switzerland and may only have to pay the tax in Italy.
• It is important to note that the tax situation may vary depending on the specific

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