Living in Laglio and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• New Frontier Agreement: in force from 1 January 2024
• Transitional regime 2024–2033 for old frontier workers
• Excess €10,000 for new frontier workers

Key facts

• What: New Frontier Agreement
• When: 1 January 2024
• Where: Ticino
• Who: Frontiersmen
• Amount: €10,000 (deductible)

The New Frontier Agreement was signed on 23 December 2020 and provides important news for border workers who live in Laglio but work in Ticino. These include the transitional regime 2024–2033 for old frontier workers and the €10,000 deductible for new frontier workers.

How the New Frontier Agreement works

The New Frontier Agreement was signed between Switzerland and Italy to regulate the situation of border workers living in Laglio but working in Ticino. This agreement entered into force on 1 January 2024 and provides several new features for border workers.

Transitional regime 2024–2033

The transitional regime 2024–2033 was introduced for old frontier workers who have already lived in Laglio but worked in Ticino before the entry into force of the New Frontier Agreement. This regime provides that old frontier workers can continue to work in Ticino without undergoing significant changes in their tax regime. However, it is important to note that old frontier workers will still have to comply with Swiss and Italian tax rules.

Excess of €10,000 for new frontier workers

The deductible of

Operational details

The use of a border crossing has no influence on the transitional regime 2024–2033. Despite this, border workers who live in Laglio but work in Ticino must take into account certain tax rules.

According to the federal law of 20 December 2018, individuals residing in Switzerland and working in Italy are subject to Swiss tax rules. However, there are some exceptions that need to be considered.

For example, if a frontier worker works in a company based in Ticino and earns a salary of CHF 80,000 per year, he could be considered an employee and subject to Swiss law. However, if you work as a freelancer or entrepreneur, you may be subject to Italian tax rules.

For borders living in Laglio and working in Ticino, it is important to consider the following tax rules:

• Income taxes : Border workers earning a working income in Ticino are subject to Swiss income taxes. The income tax is 1.8% for income up to CHF 20,000 and 1.9% for income between CHF20,001 and CHF 80,000. Income above CHF 80,000is subject to the income tax of 3.4%. - Social security contributions: Border workers earning a working income in Ticino are subject to Swiss social security contributions. Contributions are 6.4% for income up to CHF 20'000 and 6.9% for income between CHF 20'001 and 80'000. - Stamp duty: border crossers who earn a

Useful tools to protect your net income

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

Key points

For frontier workers who live in Laglio but work in Ticino, taxation is regulated by the New Frontier Agreement. Double taxation is avoided by the tax credit. If you are a border worker, it is important to consult a tax expert to understand how your situation is regulated.

The New Frontier Agreement, signed on 21 June 1963, is a treaty between Switzerland and Italy that regulates the working and residence conditions of frontier workers. According to the agreement, frontier workers are exempt from income taxes in Switzerland and Italy, but must declare their income in one of the two countries.

Imagine being a frontier worker working in Lugano as a financial consultant and living in Laglio. If you earn 80,000 francs a year, your income is subject to income tax in Switzerland, which is 6.5%. However, thanks to the tax credit, you won't be taxed twice, once in Switzerland and once in Italy.

For example, if you work in Lugano and earn 80,000 francs a year, your income is subject to income tax in Switzerland, which is 6.5%. However, thanks to the tax credit, you won't be taxed twice, once in Switzerland and once in Italy.

However, if you work in another Ticino region, such as Bellinzona, the situation may be different. In this case, you may be subject to income tax in Switzerland, but you would not be entitled to the tax credit.

Here is a comparison between two practical scenarios:

| Scenarios | Income

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.