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

Context

In a nutshell

• On 23 December 2020, the New Frontier Agreement between Italy and Switzerland was signed.
• On 1 January 2024, the New Frontier Agreement entered into force.
• Border workers who were already in Switzerland before 17 July 2023 are exempt from the tax at source for an amount of €7,500.
• New frontier workers are exempt from tax at source for an amount of €10,000.

Who are the frontiersmen?

Border workers are those who reside in one country and work in the other, in this case, Italians who reside in Switzerland and work in Ticino. The New Frontier Agreement has been signed to simplify the rules related to cross-border work and reduce bureaucratic burdens.

Here's some important information

• Residence: to be considered border workers, you must reside in Switzerland and work in Ticino.
• Work: the work can be carried out in one of the Ticino provinces, such as Lugano, Bellinzona or Locarno.
• Tax at source: Exempt or deductible amounts are determined by the New Frontier Agreement and may vary depending on the individual situation.

Concrete examples

• Exempt frontier worker: an Italian who resides in Lugano and works in a company in Bellinzona may be exempt from tax at source for an amount of €7,500, if he resides in Switzerland before 17 July 2023.
• Franchised frontier worker: an Italian who resides in Locarno and works in a company in Lugano can

Operational details

Border workers who are in Ticino have the right of option for health insurance (LAMal) and can choose to pay the excess for adult border workers, which varies between CHF 300 and CHF 2,500. This means that they could pay CHF 1,200 per year, as a concrete example, if they opted for the higher deductible. It is important to note that the deductible is not a fixed expense and may vary based on individual choices.

• Border workers in Ticino are subject to source tax in Switzerland and are not subject to source tax in Italy thanks to the double taxation tax credit. This means that they will not have to pay taxes twice, as would happen if they worked in Italy and were resident in Switzerland.

• Border workers in Ticino can benefit from the transitional regime for tax at source until 2033. This regime was set up to help frontier workers navigate the complex Swiss tax system. It is important to note that the transitional regime is not an automatic guarantee and may be subject to change in the future.

• Border workers in Ticino can access the assistance services for border workers provided by the State of Ticino. These services may include tax advice, health care, and job search support.

Some concrete examples of how these services can be useful are:

• A border worker who works in Lugano and has a sick daughter may require

Useful tools to protect your net income

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

Key points

If you are a cross-border worker living in Cantello, in the municipality of Brusino Arsizio, and working in the canton of Ticino, it is important to understand your tax rights and obligations. The AFC/ESTV is the single point of contact to request information about your tax rights and obligations.

To estimate your taxes and fees, you can use the salary calculator provided by the AFC/ESTV. This tool will help you understand how your taxes and fees will be calculated, taking into account your salary and work commitments.

In addition, you can access the consultancy services for border workers provided by the State of Ticino. These services will help you better understand your tax rights and obligations and resolve any issues or concerns.

Your tax rights and obligations

As a border worker, you are entitled to a number of tax benefits. For example, you can claim an allowance for border workers, which is a subsidy provided by the State of Ticino to help cross-border workers cover the costs of travelling between their place of residence and their place of work.

In addition, you can claim a child frontier allowance, which is a subsidy provided by the State of Ticino to help cross-border workers cover the costs of educating and caring for their children.

The Direct Tax Act of 1 January 2019

The direct tax law was introduced from 1 January 2019 and stipulates that the amounts for allowances for