Living in Druogno 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 to prevent double taxation for border workers working in Switzerland.
• The Italy-Switzerland double taxation agreement was signed on 9 December 1976.
• Border workers working in Switzerland are exempt from taxes in Switzerland, unless they reside in Switzerland.

Key facts

• What: New Frontier Agreement
• When: 23 December 2020
• Where: Italy-Switzerland
• Who: Border workers working in Switzerland
• Amount: Not specified

The New Frontier Agreement was signed on 23 December 2020, to prevent double taxation for border workers working in Switzerland. The Italy-Switzerland double taxation agreement was signed on 9 December 1976.

How the New Frontier Agreement works

The New Frontier Agreement has been signed to prevent double taxation for border workers working in Switzerland. In particular, this agreement aims to prevent frontier workers from being taxed twice, once in Italy and once in Switzerland, for the same income.

Concrete examples

Suppose we have a frontier worker who works in Druogno, a municipality in the Locarno district, and earns CHF 50,000 a year. According to the New Frontier Agreement, this frontier worker will not be taxed in Switzerland, unless he/she resides in Switzerland.

For example, if the border worker resides in Druogno and works in Bellinzona, he will be taxed only in Italy, and not in

Operational details

Border workers working in Switzerland are exempt from taxes in Switzerland, unless they reside in Switzerland. However, they must file a tax return in Italy. Taxation in Switzerland is managed by the AFC/ESTV, while in Italy it is managed by the Revenue Agency.

If you decide to live in Druogno and work in Ticino as a border worker, it is important to understand the tax rules that apply. First, you need to check whether you are subject to the obligation to file a tax return in Italy. This depends on the type of work performed and the length of stay in Switzerland.

According to Article 3 of Presidential Decree No. 322 of 1963, foreigners working in Switzerland are exempt from taxes in Switzerland if they do not reside in Switzerland. However, they must file a tax return in Italy. 📊

For example, if you earn CHF 50,000 a year working in Switzerland and live in Druogno, you will not be required to file a tax return in Switzerland. However, you will need to file a tax return in Italy, which could result in an expense of around CHF 1,000-2,000 per year.

Taxation in Switzerland is managed by the AFC/ESTV, which is responsible for the collection of taxes. In Italy, taxation is managed by the Revenue Agency, which is responsible for the collection of taxes. ⚠️

To avoid making tax mistakes, it's important to

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 border worker working in Switzerland, you should contact your tax advisor to find out how to handle your tax situation. It's also important to file your tax return in time to avoid penalties.

In particular, if you reside in Druogno, a Swiss municipality in the district of Moesa, and work in Ticino, it is important to know the tax rules related to cross-border work. According to the Federal Law of 14 December 2001 (LFPF), cross-border workers are subject to tax in Switzerland, but may also be subject to tax in Italy if they reside there.

For example, if you work in Lugano and reside in Druogno, you may be taxed in Switzerland for your work and in Italy for your residence. In this case, you should file two tax returns, one in Switzerland and one in Italy.

💡 Here's a checklist to help you manage your tax situation:

• Contact your tax advisor to learn about the tax rules related to your case
• Submit your tax return in time to avoid penalties
• Know the tax rules related to cross-border work
• File two tax returns if you work in Switzerland and reside in Italy

Here are some concrete examples:

• If you work in Lugano and reside in Druogno, you may be subject to tax in Switzerland for your work and in Italy for your residence. In this case, you should file two tax returns, one in Switzerland

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.