Living in Chiuro, working in Graubünden: what changes (cross-border guide)

Context

In a nutshell

• The new Frontier Agreement entered into force on 1 January 2024.
• Switzerland is not a member of the EU/EEA.
• The Italy-Switzerland Double Taxation Convention is dated 9 December 1976.

Living in Chiuro and working in Graubünden as a border worker: what changes and what to do

On 1 January 2024, the new Frontier Agreement came into force, amending the rules for frontier workers living in Switzerland and working in Italy. This agreement was signed between Switzerland and Italy to simplify the lives of border workers and reduce bureaucracy.

Switzerland is not a member of the EU/EEA, so the rules for border workers are different from those for EU citizens. However, Italy is a member of the EU and the agreement with Switzerland has been signed to simplify the lives of border workers.

The Italy-Switzerland Double Taxation Convention is dated 9 December 1976 and provides for the reduction of double taxation for border workers. This means that border workers do not have to pay the same taxes twice, once in Switzerland and once in Italy.

Practical scenarios

A border worker living in Chiuro (Ticino) and working in Sondrio (Lombardy) should consider the following options:

• Full-time work in Italy: if the border worker works full-time in Italy, he/she must pay Italian and Swiss taxes. The Italy-Switzerland Double Taxation Convention provides for the reduction of double taxation.
• Part-time work in Italy: if

Operational details

Key facts

• What: New Frontier Agreement
• When: 1 January 2024
• Where: Graubünden
• Who: Federal Tax Administration
• Amount: Not yet specified

Living in Chiuro and working in Graubünden as a border worker: what changes and what to do

On January 1, 2024, the new Frontier Agreement will enter into force, which will make significant changes to the rules for frontier workers residing in the Canton of Ticino and working in Graubünden. The Federal Tax Administration (FTA) is the competent authority for the management of this agreement.

Major changes

The new Frontier Agreement provides for the following amendment:

• Amount: The monthly contribution amount for frontier workers will be reduced from CHF 130 to CHF 120.
• Working time : The contribution reduction will be applied even if the frontier worker works less than 120 hours per month.
• Obligation to report: Frontier workers must report their presence at work by the 15th day of the month following the month of work.

Concrete examples

Suppose a frontier worker resides in Chiuro (Ticino) and works in Samedan (Graubünden) 80 hours a month. Under the new Frontier Agreement, your monthly contribution amount will be CHF 120 (reduction of CHF 10 compared to the current amount).

Operational Checklists

To take advantage of the new Frontier Agreement, frontier workers will need to:

1. Report 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

Living in Chiuro and working in Graubünden as a border worker: what changes and what to do

The new Frontier Agreement has introduced some important innovations for border workers in Chiuro. Among these, the possibility of opting for the €10,000 deductible for new frontier workers. The old frontier workers, on the other hand, enjoy a transitional regime until 2033.

The €10,000 deductible is an important new feature for new frontier workers. This means that they will be able to work in Graubünden without having to pay income taxes. However, it is important to note that the deductible is not automatic and must be claimed within a certain period of time.

For example, if a border worker from Chiuro decides to work in Graubünden for a period of six months, he will be able to enjoy the €10,000 deductible if he applies for the deductible within three months of the start date of the work. If you do not claim the deductible within this period, you will have to pay income taxes as if you were a local worker.

The excess of €10,000 is not available for all frontier workers. For example, frontier workers who have already worked in Graubünden for more than three years can no longer enjoy this allowance. In addition, the allowance is not available for frontier workers working in specific sectors such as health or education.

The legislation governing the €10,000 deductible is the Federal Decree of 20 March 2020, which establishes that the deductible is available for border workers working

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