Living in Comabbio, working in Ticino: what to know (cross-border guide)

Context

Living in Comabbio and working in Ticino as a border worker: what you need to know and do

The New Frontier Agreement was signed on 23 December 2020 and enters into force on 1 January 2024. The border crossing resident in Italy is exempt from taxes in Switzerland up to CHF 7,500, while the new border crossing has a deductible of CHF 10,000. 📊

For Italians living in Comabbio, in the province of Varese, who work in Switzerland as border workers, it is important to know the new rules and opportunities offered by the New Border Agreement. This agreement provides greater flexibility for frontier workers, who will be able to enjoy a greater exemption from taxes in Switzerland.

For example, if a frontier worker resides in Comabbio and works in Switzerland, he will be able to enjoy an amount of CHF 7,500 tax-free in Switzerland, while if he resides in another Italian location, he will have to take into account the excess of CHF 10,000. It is important to note that these rules only apply to border workers residing in Italy and working in Switzerland.

For frontier workers who intend to work in Switzerland, it is important to know the following information: 📊

• Residence in Italy: to enjoy tax exemption in Switzerland, you must reside in Italy. - Processing in Switzerland: to be considered a border worker, it is necessary to work in Switzerland for at least 183 days a year. - The deductible: if the frontier has a deductible

Operational details

Practical analysis

The frontier worker should be aware that the New Frontier Agreement introduces new rules for tax reporting and taxes. You should also be aware of the CHF 10,000 deductible for new frontier workers.

Who are the frontiersmen?

Border workers are workers who reside in one country and work in another neighbouring country. In Ticino, there are mainly Swiss border workers working in Italy and Italian border workers working in Switzerland.

New tax filing rules

As of 1 January 2023, the New Frontier Agreement introduces new rules for tax reporting. Border workers must submit an annual tax return by 31 March of the year following the year in which they worked. The declaration must be submitted in electronic form through the Ticino Revenue Agency web portal.

Deductible of CHF 10,000

The allowance of CHF 10,000 is a tax benefit that is granted to new frontier workers working in Ticino. This means that the first CHF 10,000 of income is not subject to taxation. However, if the income exceeds CHF 10,000, the deductible is no longer applicable.

Concrete example

Let's imagine that an Italian border worker resides in Comabbio (IT) and works in Ticino (CH). In 2023, the frontier worker earns CHF 25,000 working in Ticino. Under the new rules, the border crossing must submit a declaration of

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

• The border worker must consult his bank account to know if he has already received the CHF 10,000 deductible, as established by the federal law of 22 March 2019, which introduced the deductible for borders residing in Switzerland. - You should also consult your employer to find out if you have already paid taxes in Switzerland, as required by the federal law of 14 December 2018, which introduced the reform of direct taxation. - If you have any questions or concerns, you can contact the Swiss Confederation's Border Assistance Service (SAF), which provides assistance and information to borders residing in Switzerland. - In addition, it is advisable to consult the website of the Federal Department of Finance (FDF) for up-to-date information on deductibles and direct taxation.

Concrete examples

• For example, a border worker resident in Comabbio working in Ticino can receive the deductible of CHF 10,000 if he/she has an annual income of CHF 60,000 or less, as established by the federal law of 22 March 2019. - If the border worker has already paid the taxes in Switzerland, he may request the refund of the taxes paid in Italy, as provided for in the agreement between Switzerland and Italy of 26 May 1997. - In addition, the border agent may request the reimbursement of travel expenses between Switzerland and Italy, as provided for by the federal law of 14 December 2018.

Operational Checklists

• Check your bank account to see if it has

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