Living in Tirano and working in Graubünden as a border worker (cross-border guide)

Context

In a nutshell

• New 2024 border agreement:
• Ticino border workers working in Graubünden are not subject to double taxation.
• Tax credit to avoid double taxation.
• New rules for frontiersmen.

Living in Tirano and working in Graubünden as a border worker

Ticino is a region bordering Italy, which is home to many border workers working in Switzerland. Among these, some work in Graubünden, one of the three Swiss republics bordering Italy. But what does it mean to be a frontier in this context?

New border agreement 2024

As of 2024, the new border agreement comes into force. This agreement provides that Ticino border workers working in Graubünden are not subject to double taxation. In practice, this means that frontier workers will not have to pay taxes in both countries, i.e. Switzerland and Italy.

Tax credit to avoid double taxation

To avoid double taxation, border crossers can apply for a tax credit. This credit is calculated based on income earned in Switzerland and can range from a minimum of 1,000 to a maximum of 5,000 CHF per year. For example, if a border worker earns CHF 40,000 a year in Switzerland, the tax credit could be CHF 2,000.

New rules for border workers

The new 2024 border agreement also provides for new rules for border workers. These include:

• Request for recognition: i

Operational details

Key facts

• Tax at source on income from work: only withheld in Switzerland for border workers.
• New Frontier Agreement: signed on 23 December 2020, in force from 1 January 2024.
• Old frontier workers (already before 17 July 2023): exemption of €7,500, transitional regime 2024-2033.
• New frontier workers: deductible of €10,000.

Living in Tirano and working in Graubünden as a border worker

Ticino is a multilingual and multicultural region, where the proximity to Italy and Europe has created a unique context for frontier workers. Living in Tirano, in the province of Bergamo, and working in Graubünden, Switzerland, can be an advantageous experience, but it requires being aware of the rules and regulations that affect him.

Tax at source on earned income

In Switzerland, the income tax at source is 2.2% for frontier workers. This means that the frontier worker pays the tax only in Switzerland, while in Italy he is not subject to any tax. This scheme favours frontier workers working in Switzerland, but it is important to note that the tax could be higher in Italy, depending on the region of residence.

New Frontier Agreement

On 23 December 2020, the New Frontier Agreement was signed, which comes into force from 1 January 2024. This agreement provides for border workers to be able to work in Switzerland without having to apply for a work permit. In addition, frontier workers who

Useful tools to protect your net income

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

Key points

Living in Tirano and working in Graubünden as a border worker

If you are a Ticino frontier worker working in Graubünden, it is essential to know the rules and opportunities that are offered to you. In this article, we will provide you with useful and concrete information to help you understand how to manage your border position and how to take advantage of the possibilities that Switzerland offers.

You will not be subject to double taxation

Switzerland and Italy have signed an agreement to avoid double taxation, which allows you to work in Graubünden without being subject to double taxation. This agreement was signed in 2010 and entered into force in 2012.

Tax credit to avoid double taxation

Under the new rules, you can benefit from a tax credit to avoid double taxation. This credit is calculated on 10% of the taxes paid in Italy and can be used for a discount on Swiss taxes.

Concrete example

Imagine you are a frontier worker working in Tirano and earning 60,000 Swiss francs a year. Under the rules, you could qualify for a tax credit of 6,000 Swiss francs (10% of 60,000). This credit can be used for a discount on Swiss taxes, which could be 20,000 Swiss francs. That way, you could save 6,000 Swiss francs.

New rules for border workers

The new rules for frontier workers have been introduced to simplify the management of taxes and

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