Living in Moltrasio and working in Ticino as a border worker (cross-border guide)
Practical guide for border workers: taxation, new agreement and daily life between Moltrasio and the Canton of Ticino.
Context
In a nutshell
- New Frontier Agreement in force from 1 January 2024.
- Exclusive taxation in Switzerland with tax credit in Italy.
- Exemption of 7,500 euros for old border workers until 2033.
- Deductible of 10,000 euros for new frontier workers.
Key facts
- What: Agreement between Italy and Switzerland for frontier workers.
- When: Effective January 1, 2024.
- Where: Border between Italy and Canton Ticino.
- Who: Revenue Agency and Swiss tax authorities.
- Amount: Deductible of 10,000 euros for new frontier workers.
Moving to Moltrasio for those who work in Switzerland is a life choice that requires a clear understanding of the current regulatory framework. From 1 January 2024, the new tax agreement regulates the relationship between the two States, surpassing the previous provisions. The system provides for employee income to be taxed at source in Switzerland, while Italy eliminates double taxation through the recognition of a tax credit in the EC framework of the tax return. The Double Taxation Convention, signed on 9 December 1976, remains the fundamental pillar of this relationship, recalling that Switzerland is not a member of the European Union or the European Economic Area.
Transitional discipline
Current legislation distinguishes between so-called old border crossers, i.e. those who were already such before 17 July 2023, and
Operational details
The analysis of commuterism between Moltrasio and the Canton of Ticino requires considering both the logistical and insurance aspects. The border resident living in Italy and working in Switzerland must manage their pension and health position correctly. The LAMal represents the mandatory health insurance for those working in Switzerland; border workers with a G permit enjoy the right of option, being able to choose between the Swiss and Italian healthcare systems. The adult franchise for LAMal usually varies between 300 and 2,500 Swiss francs. Correctly managing these obligations is essential to avoid fines and ensure adequate coverage during the working period.
Useful tools to protect your net income
To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.
Key points
The procedure for those who choose to settle in Moltrasio working in Ticino begins with the correct formalization of the employment relationship. The G permit is the essential document that enables the border worker to operate on Swiss territory. Once hired, the employee must ensure that the employer applies the correct withholding at source, in accordance with the directives of the Federal Administration of Contributions. It is necessary to keep all documentation related to pay slips and Swiss tax certificates, as they will be essential for compiling the CE section of the Italian tax return, necessary to request tax credit and avoid double taxation.
Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.
Frequently Asked Questions
- What tax regime applies to new frontier workers from 2024?
- From 1 January 2024, new frontier workers are subject to taxation at source in Switzerland. Italy, under the new agreement, eliminates double taxation by granting a tax credit. A tax exemption of 10,000 euros is provided for new workers.
- What changes for the old frontiersmen?
- Workers who were already frontier workers before 17 July 2023 benefit from a transitional regime valid from 2024 to 2033, which includes a tax exemption of 7,500 euros, while maintaining the protections provided by previous agreements.
- How does LAMal insurance for border crossers work?
- Border workers in possession of the G permit have the right of option, which allows them to choose between the Swiss LAMal health system and the Italian one. Deductibles for adults usually range from 300 to 2,500 Swiss francs.