Living in Jerago with Orago and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• The new tax agreement between Switzerland and Italy entered into force on 1 January 2024. - Border workers living in Ticino and working in the neighbouring country must be aware of the new rules and procedures.

Key facts

• What: New tax deal. - When: 1 January 2024. - Where: Switzerland and Italy. - Who: Border workers living in Ticino and working in the neighbouring country. - Amount: Not specified.

The new tax agreement was signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023. Border workers who live in Ticino and work in the neighboring country must know the new rules and procedures to avoid tax problems.

Key facts

• What: New tax agreement. - When: 1 January 2024. - Where: Switzerland and Italy. - Who: Border workers living in Ticino and working in the neighbouring country. - Amount: Not specified.

Concrete examples

A concrete example is that of a border worker who lives in Jerago with Orago and works in Ticino. This individual must know the new rules and procedures to avoid tax problems. For example, if you work for 20 hours a week in Ticino, you need to know that the new tax agreement provides for a 10% tax on work income. If your working income is CHF 2,000 per week, the taxation would be CHF 200 per week.

Operational Checklists

To avoid tax problems, border workers living in Ticino and working in the neighbouring country must follow the

Operational details

Living in Jerago with Orago and working in Ticino as a border worker

• Border workers living in Ticino and working in the neighbouring country must be aware of the new rules and procedures to avoid tax problems. - It is important to note that the new tax agreement entered into force on 1 January 2024 and that frontier workers must be in compliance with the new rules and procedures.

How cross-border work works in Ticino

• Cross-border work in Ticino is regulated by the new tax agreement between Switzerland and Italy, which entered into force on 1 January 2024. - Frontier workers must comply with the new rules and procedures to avoid tax problems. - Border workers who live in Jerago with Orago and work in Ticino must take into account the following rules:

+ Border workers earning more than CHF 15,000 per year must pay taxes in Switzerland. + Border crossers earning less than CHF 15,000 per year can opt for taxation in Italy. + Border crossers who have a total income of more than CHF 100,000 per year must pay an additional tax of 5% on excess income.

Concrete examples

• A frontier worker who lives in Jerago with Orago and works in Ticino earns CHF 20,000 per year. Under the new rules, he has to pay taxes in Switzerland and cannot opt for taxation in Italy. - Another frontier worker who lives in Jerago with Orago and works in Ticino earns CHF 10,000 per year. Under the new rules, you can opt for the

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 Jerago with Orago and working in Ticino as a border worker

• Border workers living in Ticino and working in the neighbouring country must be aware of the new rules and procedures to avoid tax problems.

Operational Checklists

• Verify the residence in Ticino and the availability of a fixed address. - Know the new tax rules and procedures for border workers. - Report the presence of a job in the neighbouring country to the Ticino tax authorities. - Pay taxes and duties related to work in the neighboring country. - Obtain a declaration of work and income for work in the neighbouring country. - Check the availability of an employment contract that provides for the payment of a minimum salary.

Concrete examples

• A border worker who lives in Jerago with Orago and works in Ticino must pay taxes and duties related to work in the neighboring country. For example, if the border worker has an income of CHF 60,000 per year and works 180 days in the neighbouring country, he/she must pay taxes and duties related to this income. - A border worker who lives in Bellinzona and works in the neighbouring country must report the presence of a job in the neighbouring country to the Ticino tax authorities. For example, if the border worker has an employment contract that provides for the payment of a minimum salary of CHF 3,500 per month, he must report the presence of this contract to the Ticino tax authorities.

References to specific common Ticinese

-

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.