Frontalieri Ticino: what changes with the New 2024 Agreement (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement of 2024 entered into force on 1 January 2024.
• It provides for an exemption of € 7,500 for old border guards and € 10,000 for new border guards.

Key facts

• What: New Frontier Agreement of 2024
• When: 1 January 2024
• Where: Graubünden
• Who: Frontiersmen
• Amount: € 7,500 (old border guards) and € 10,000 (new border guards)

The New Frontier Agreement of 2024 was signed on 23 December 2020 and ratified by Law 83 of 13 June 2023. The agreement provides for an exemption of € 7,500 for old border workers and € 10,000 for new border workers. This means that border workers who reside in Tovo di Sant'Agata and work in Graubünden will have to comply with the new rules of the agreement.

What changes for old frontiersmen

Old frontier workers who reside in Tovo di Sant'Agata and work in Graubünden will benefit from the exemption of € 7,500. For example, a frontier worker who resides in Tovo di Sant'Agata and works in Bellinzona will enjoy an exempt amount of € 7,500, reducing his tax burden.

What's changing for new frontier workers

New frontier workers residing in Tovo di Sant'Agata and working in Graubünden will be eligible for an exemption of € 10,000. For example, a frontier worker who resides in Tovo di Sant'Agata and works in Lugano will enjoy an exempt amount of € 10,000, further reducing his tax burden.

How the exemption works

The exemption of

Operational details

On 1 January 2024, the New Frontier Agreement will enter into force, which provides for substantial changes for frontier workers residing in the Canton of Ticino and working in the Canton of Graubünden. The agreement, signed on 15 June 2022, introduces new rules for border workers, with the aim of simplifying and modernising the cross-border work system.

Tax exemptions

The New Frontier Agreement provides for the exemption of € 7,500 for old frontier workers and € 10,000 for new frontier workers. This means that border workers who reside in Tovo di Sant'Agata and work in Graubünden will have to comply with the new rules of the agreement.

For example, a frontier worker who resides in Bellinzona and works in Chur will benefit from the exemption of € 10,000 if he is a new frontier worker, while a frontier worker who resides in Biasca and works in Chur will benefit from the exemption of € 7,500 if he is an old frontier worker.

Rules for frontier workers

The New Frontier Agreement introduces new rules for frontier workers, including:

• The possibility of working in Graubünden without having to obtain a residence permit, if you reside in the Canton of Ticino;
• The possibility of receiving a subsistence allowance of € 100 per month, if you reside in the Canton of Ticino;
• The possibility of receiving a transport allowance of € 50 per month, if you reside in the Canton of Ticino;
• The possibility of receiving a meal allowance of € 30 per day, if you reside

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

For border workers who reside in Tovo di Sant'Agata and work in Graubünden, it is important to comply with the new rules of the New Frontier Agreement of 2024. This means that they will only have to pay the tax at source in Switzerland and not in Italy. In addition, they will have to comply with the new exemption and deductible rules.

The New Frontier Agreement of 2024 provides for frontier employees to pay source tax only in Switzerland, at the rate of 8.85%. This means that employees working in Graubünden but residing in Tovo di Sant'Agata will no longer have to pay tax in Italy. However, it is important to note that employees who have already paid the tax in Italy will have to submit a refund request for the sums already paid.

The new legislation also provides for frontier employees to be exempt from tax in Switzerland if their income is less than 12,000 Swiss francs per year. In addition, employees earning between 12,000 and 20,000 Swiss francs per year will have to pay a 5% reduced tax.

Concrete examples can help you better understand the new rules. For example, a border clerk working in Samedan and residing in Tovo di Sant'Agata earns 15,000 Swiss francs per year. Under the new rules, he will have to pay a reduced tax of 5% on his income, or 750 Swiss francs per year.

Other examples include:

• A border employee who works in Sondrio and resides in Tovo di Sant'Agata

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