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

Context

In a nutshell

• The Italian-Swiss Double Taxation Convention was signed on 9 December 1976. - The New Frontier Agreement was signed on 23 December 2020. - The G permit is required to work in Switzerland, while the B permit is required to reside in Switzerland.

Key facts

• What: Living in Sormano and working in Ticino as a border worker. - When: 1 January 2024. - Where: Sormano, Ticino. - Who: Frontalieri. - Amount: Not applicable.

The New Frontier Agreement, signed on 23 December 2020, entered into force on 1 January 2024. This agreement introduced new rules for border workers working in Switzerland and residing in Italy.

The G permit is required to work in Switzerland, while the B permit is required to reside in Switzerland. Border workers working in Switzerland and residing in Italy must present both permits.

The Italian-Swiss Double Taxation Convention was signed on 9 December 1976. This convention provides that taxes paid in one country may be deducted from taxes paid in the other country.

Border workers working in Switzerland and residing in Italy must file a tax return in both countries. The tax return in Switzerland is submitted to the AFC/ESTV, while the tax return in Italy is submitted to the INPS.

Concrete examples

• A border worker lives in Sormano and works in Lugano. He must submit the

Operational details

Double taxation is a common problem for border workers working in Switzerland and residing in Italy. Double taxation occurs when taxes paid in one country are deductible from taxes paid in the other country.

Border workers working in Switzerland and residing in Italy must file a tax return in both countries. The tax return in Switzerland is submitted to the AFC/ESTV, while the tax return in Italy is submitted to the INPS. 📊

The Italian-Swiss Double Taxation Convention was signed on 9 December 1976. This convention provides that taxes paid in one country may be deducted from taxes paid in the other country. ⚠️

Here's a concrete example of how double taxation works. Suppose a frontier worker resides in Sormano, Italy, and works in Ticino, Switzerland. The frontier worker earns 100,000 Swiss francs a year and pays taxes in Switzerland. In addition, the frontier worker earns 50,000 euros per year and pays taxes in Italy.

According to the Italian-Swiss Double Taxation Convention, taxes paid in Switzerland can be deducted from taxes paid in Italy. This means that the frontier worker will not pay taxes in Italy on his entire income, but only on the part that has not already been taxed in Switzerland.

In this case, the border worker will pay taxes in Switzerland on 100,000 Swiss francs and taxes in Italy on 25,000 euros (50,000

Useful planning tools

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Key points

Living in Sormano and working in Ticino as a border worker

To live in Sormano and work in Ticino as a border worker, you must present the G permit to work in Switzerland and the B permit to reside in Switzerland. Border workers must file a tax return in both countries.

The Italian-Swiss Double Taxation Convention was signed on 9 December 1976. This convention provides that taxes paid in one country may be deducted from taxes paid in the other country.

Border workers working in Switzerland and residing in Italy must file a tax return in both countries. The tax return in Switzerland is submitted to the AFC/ESTV, while the tax return in Italy is submitted to the INPS.

For example, if a border worker resides in Sormano and works in Ticino, they could have an income of CHF 80,000 per year in Switzerland and €30,000 in Italy. Using the Italian-Swiss Double Taxation Convention, it could deduct the taxes paid in Italy from the taxes paid in Switzerland.

The taxation of border workers depends on the regulations in force in both countries. In Switzerland, the tax rate is 40% for incomes up to CHF 20,000 and 10% for higher incomes. In Italy, the tax rate is 23% for incomes up to €9,512 and 41% for higher incomes.

To avoid being considered non-resident in Switzerland, frontier workers must

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