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

Context

In a nutshell

Switzerland, despite not being part of the EU/EEA, signed the double taxation agreement with Italy on 9 December 1976. The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024. New frontier workers will be subject to a deductible of €10,000.

Key facts

• What: New Frontier Agreement
• When: December 23, 2020
• Where: Switzerland
• Who: New frontier workers
• Amount: €10,000

Switzerland, being a non-EU/EEA country, has maintained a unique position in the European landscape. However, the Italy-Switzerland double taxation convention signed on December 9, 1976, created a common framework for trade and human resources between the two countries. This agreement has allowed workers to take advantage of job opportunities in Switzerland, as in the case of Cannero Riviera, a municipality located in the province of Varese, a few kilometers from the Swiss border.

Border workers, therefore, will be able to take advantage of job opportunities in Ticino, thanks to the New Border Agreement signed on 23 December 2020. This agreement will be in force from 1 January 2024 and will introduce a €10,000 allowance for new frontier workers. This means that workers moving to Switzerland will have to declare incomes and financial resources in excess of this deductible.

Concrete example: a worker who earns €50,000 per year in Switzerland and has a property in

Operational details

The Italy-Switzerland double taxation agreement was signed on 9 December 1976, thus giving rise to the border regime between the two countries. New frontier workers will be subject to a deductible of €10,000, as established by the agreement itself.

For Italian citizens working in Switzerland, the double taxation convention represents an important guarantee of not being subject to double taxation on income. Switzerland is not a member of the EU/EEA, but the Italy-Switzerland double taxation convention was signed in 1976 and has since regulated tax relations between the two countries.

Switzerland, in fact, has signed the double taxation agreement with many countries, including Italy, to avoid subjecting its citizens to double taxation on income. This means that the incomes of Italian citizens working in Switzerland will only be taxed in one of the two countries, according to the convention in force.

For example, if an Italian citizen works in Switzerland and earns €50,000 per year, he will be taxed only in Italy, starting from the deductible of €10,000. This means that the Italian will not be subject to taxation in Switzerland, but only in Italy, where he will be taxed on income earned in Switzerland.

In this scenario, it is important to note that taxation in Italy will only be applied to income earned in Switzerland, and not to income earned in Italy. This means that if the Italian earns €30,000 in Italy and

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Key points

If you are a Swiss or Italian citizen wishing to live in Cannero Riviera and work in Ticino, you must obtain a G or B permit. The new law provides for the possibility of obtaining the G or B permit from the AFC/ESTV or the cantonal tax administrations.

To start, it is important to understand the differences between the G permit and the B permit. The G permit is intended for frontier workers who carry out an economic activity in Switzerland, while the B permit is intended for frontier workers who do not carry out an economic activity in Switzerland.

To obtain the G or B permit, you must submit an application to the AFC/ESTV or the cantonal tax administration. It is important to note that the application procedure may vary depending on the individual situation and the specific conditions of the case.

The G or B permit application must be submitted within 30 days of the date of entry into Switzerland. You can also apply before entering Switzerland, but you must submit a copy of the application within 30 days of the date of entry.

Concrete example:

Let's imagine we have an Italian citizen who wants to work as a chef in a restaurant in Lugano. He moves to Cannero Riviera and gets an employment contract with a restaurant in Lugano. In this case, he must submit a G permit application to the AFC/ESTV or

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