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

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024.
• The exemption of 10,000 euros provided for by the New Agreement is not a threshold for exemption from Swiss source tax, but an exemption threshold for IRPEF purposes in Italy.
• The G permit is required to work in Ticino as a border worker.

Key facts

• What: New Frontier Agreement
• When: 23 December 2020
• Where: Ticino
• Who: Frontiersmen
• Amount: 10,000 euros

The border worker who works in Ticino and resides in Abbadia Lariana is entitled to special tax benefits.

Living in Abbadia Lariana and working in Ticino as a border worker

Living in Abbadia Lariana and working in Ticino as a border worker can be an interesting option for those who wish to work in Switzerland without having to give up their Italian residence. However, it is important to understand the rules and regulations governing the border between Italy and Switzerland.

The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024. This agreement provides for the exemption of 10,000 euros, which is not an exemption threshold from Swiss source tax, but an exemption threshold for IRPEF purposes in Italy. This means that frontier workers working in Ticino and earning less than €10,000 per year will not be subject to Swiss source tax.

However, it is important to note that the G permit is required for

Operational details

The Lariana Abbey is located in the province of Lecco, not Como. The exemption of 10,000 euros provided for by the New Agreement is not a threshold for exemption from Swiss source tax, but an exemption threshold for IRPEF purposes in Italy.

If you are a border worker and work in Ticino, you may be entitled to an exemption of 10,000 euros for personal income tax purposes in Italy, but you are not exempt from Swiss tax at source. This means that you will have to pay taxes in Switzerland on your working income.

For example, if you earn €50,000 per year in Ticino, you may be entitled to a €10,000 deductible for personal income tax purposes in Italy. This means that you would pay taxes in Italy only on the income of 40,000 euros, while in Switzerland you would pay taxes on the income of 50,000 euros.

The €10,000 deductible is provided for by the New Agreement, which entered into force on 1 January 2020. This agreement introduced several changes to the tax regulations between Italy and Switzerland.

If you are a border worker and work in Ticino, it is important to consult a tax consultant to assess your personal situation and determine if you are entitled to the €10,000 deductible for personal income tax purposes in Italy.

In addition, it is important to note that the €10,000 deductible is not automatic and you will need to file a tax return in Italy to apply for it.

If you are a border worker and work in Ticino, you may be entitled to an exemption of 10,000 euros for personal income tax purposes in

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

The border worker who works in Ticino and resides in Abbadia Lariana can benefit from an exemption of 10,000 euros for personal income tax purposes in Italy. It is necessary to present the G permit to work in Ticino as a border worker.

To better understand this scenario, it is useful to know the rules governing cross-border work in the Canton of Ticino. According to Ticino law, a border worker can work in Ticino without having to apply for a work permit if he resides in a neighbouring municipality and carries out work in an adjacent municipality.

The exemption of 10,000 euros for personal income tax in Italy is provided for by the Italian law of 1992 (Law no. 449 of 16 December 1992) and applies to workers who carry out work in a country adjacent to Italy. This deductible is calculated on the basis of the tax due in Italy and cannot be cumulated with other deductibles or deductions.

To benefit from this exemption, you must present the G permit, which is issued by the state of residence (in this case, Italy). The G permit must be presented together with the employment contract and all the documents necessary for registration at the Labour Office of the Canton of Ticino.

Here is a concrete example of how this scenario works:

• A worker resides in Abbadia Lariana (Italy) and works in Lugano (Ticino).
• The worker has an income of 40,000 euros per year.
• The worker presents the G permit and the employment contract at

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