Border workers in Ticino: transfer from Morazzone (cross-border guide)

Context

In a nutshell

• The new border agreement of 2024 entered into force on 1 January 2024.
• Border workers can work in Ticino and live in Morazzone without problems.
• Tax at source is withheld only in Switzerland.

Key facts

• What: New border agreement of 2024
• When: 1 January 2024
• Where: Ticino
• Who: Frontiersmen
• Amount: No specific amount

The new 2024 border agreement was signed on 23 December 2020 and replaced the old agreement. The new agreement provides for source tax to be withheld only in Switzerland, thus avoiding double taxation.

How the new agreement works

The new border agreement of 2024 introduces some important innovations for border workers working in Ticino and living in Morazzone. First of all, the tax at source is only withheld in Switzerland, which means that border workers no longer have to pay the tax in Italy. This can save them up to €2,500 per year, depending on their income.

For example, if a frontier worker works in a company in Lugano and earns 60,000 euros per year, the source tax in Switzerland will be 5%, which means that the company will withhold 3,000 euros per year. If the frontier worker were to pay the tax in Italy, the tax would be 20% and the amount would be 12,000 euros per year.

Practical scenarios

Here are some practical scenarios that can help you understand how the new agreement works:

• A frontier worker works

Operational details

The new border agreement of 2024 is a great advantage for border workers who move to Morazzone. In fact, border workers can work in Ticino and live in Morazzone without problems. In addition, the source tax is withheld only in Switzerland, thus avoiding double taxation. This means that frontier workers can enjoy a higher income without having to pay double taxes.

The 2024 agreement is based on the Tax Convention between Switzerland and Italy, dated 26 June 1996. This convention provides that income taxes of individuals and companies are exempt from double taxation. In addition, the convention provides that personal income taxes are exempt from double taxation only if the income is derived from sources located in Switzerland.

A concrete example can help you better understand how this agreement works. Let's imagine that we have a frontier worker who lives in Morazzone and works as an engineer in a company in Lugano. His monthly salary is CHF 8'000. According to the 2024 agreement, the source tax of CHF 1,800 (22.5% of salary) is withheld only in Switzerland. This means that the frontier worker will not have to pay double taxes on his income.

The tax convention between Switzerland and Italy was updated in 2020 to also include the Valais region. This means that border workers who work in Valais and live in Morazzone

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 move to Morazzone and work in Ticino as a border worker, you must follow the following steps:

1. Check if you are eligible for the G or B permit. To do this, you need to contact the Revenue Office and provide the required documents, such as your passport and ID card. 📊

2. Obtain the G or B permit at the Revenue Office. The cost of the permit varies depending on the type of permit required, but generally ranges between 100 and 200 CHF. ⚠️

3. Register with the postal bank to receive your bank account. This is necessary to receive your salary and to make payments. The cost of enrollment varies depending on the bank chosen, but is generally CHF 10-20.

4. Check if you are eligible for the tax credit. The tax credit is a tax benefit that can be claimed by border workers working in Switzerland. To do this, you must contact the Revenue Office and provide the required documents. 📊

5. Obtain the tax credit from the Revenue Office. The cost of the tax credit varies depending on the type of permit required, but generally ranges between 50 and 100 CHF. 💡

For example, if you are eligible for permit B, you could apply for the tax credit in the amount of CHF 80 per year. The cost of permit B is CHF 120 per year, so the tax credit of CHF 80 per year represents a 67% reduction in the cost of

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