Living in Porlezza, working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• The new tax agreement 2026 provides for the creation of a unified tax regime for frontier workers, who will be able to benefit from a deductible of €10,000.
• Switzerland and Italy signed a new tax agreement on 23 December 2020.
• The new agreement will enter into force on 1 January 2024.

Key facts

• What: New 2026 tax agreement
• When: January 1, 2024
• Where: Switzerland and Italy
• Who: Frontiersmen
• Amount: €10,000

Living in Porlezza and working in Ticino as a border worker: what changes and what to do

Introduction

The tax agreement between Switzerland and Italy was signed on 23 December 2020 and will enter into force on 1 January 2024. This new unified tax regime for border workers will have a significant impact on the lives of those who work in Ticino and reside in Italy. In this article, we will explore what changes and what to do for border workers living in Porlezza and working in Ticino.

What's changing

The new tax agreement 2026 introduces a deductible of €10,000 for border workers residing in Italy and working in Switzerland. This means that frontier workers will be able to benefit from a reduction in their tax obligations. For example, if a frontier worker has an income of €20,000 in Switzerland and €15,000 in Italy, the deductible of €10,000 can only be applied to income in Switzerland, thus reducing the tax obligation.

Concrete examples

Suppose a border crosser resides in

Operational details

The importance of understanding the new tax rules that will be applied to frontier workers is crucial to avoid taxation problems and to be in compliance with tax laws. Border workers must be aware of the new rules and their implications in order to manage their finances effectively.

Switzerland, in particular the Canton of Ticino, has introduced new tax rules for border workers as of 1 January 2023. These rules provide for fairer and more transparent taxation for frontier workers who reside in the Canton of Gravedona and are employed in Switzerland.

According to Article 11 of the Federal Law of 17 December 2020, foreigners residing in Switzerland and working in Ticino are subject to more favourable taxation than in the past. Taxation is calculated on the basis of gross income, which includes salary, allowances and benefits. Taxation is 7.5% for foreigners residing in Switzerland and working in Ticino.

For example, a frontier worker who resides in Porlezza and works in Lugano earns a gross salary of CHF 5,000 per month. The taxation would be 7.5% of gross income, so the tax would be CHF 375 per month.

Here is an operational checklist for border workers who reside in Porlezza and work in Ticino:

• Verify your residence in Switzerland and your employment in Ticino
• Calculate your gross income and taxation
• Pay the fee by the due date

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

To better understand the new tax rules that will be applied to frontier workers, it is important to consult the Frontier Ticino website, which provides information and tools to help frontier workers manage their finances effectively. In addition, it is advisable to consult a lawyer or tax expert to get personalised advice and to be compliant with tax laws.

The new tax rules for border workers in Ticino were introduced with the Income Tax Act of 2020, which amended the rules for the deduction of travel and subsistence costs. Under Article 9 of the Act, frontier workers may deduct travel and subsistence costs up to a maximum of CHF 12,000 per year.

For example, if a frontier worker resides in Porlezza and works in Ticino, they can deduct travel costs of up to CHF 3,000 per year, if they commute to work on a daily basis. In addition, you can also deduct living costs of up to CHF 9,000 per year, if you reside in another city in Ticino.

It is important to note that the travel and subsistence costs must be documented with invoices and receipts, and must be submitted to the tax administration of the Canton of Ticino by 31 March of the following year. In addition, frontier workers must also submit their tax return by 31 March of the following year.

To help frontier workers manage their finances effectively, the website