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

Context

On 23 December 2020, Italy and Switzerland signed a new tax agreement that will enter into force from 1 January 2024. This agreement is essential for frontier workers, i.e. those who work in Switzerland but reside in Italy. The tax credit provided for in this agreement avoids double taxation, i.e. taxation both in Switzerland and in Italy, on working income. Italy signed the Double Taxation Convention with Switzerland on 9 December 1976. This agreement was updated in 2020 to take into account new needs and legislative changes. The tax credit is applicable to border workers working in Switzerland and residing in Italy. A concrete example can be useful to better understand how the tax credit works. Suppose an Italian worker resides in Rezzago, Switzerland, but works in an Italian company. His working income is CHF 80,000 per year. In Switzerland, your income is subject to tax, but thanks to the tax credit provided by the agreement, you will not have to pay taxes in Italy. In addition, you can also benefit from another benefit, such as the 8% deduction on subjective income. Rezzago is a municipality in Switzerland that borders Italy. It is an ideal place for border workers who work in Ticino but reside in Italy. Other municipalities in Ticino that may be of interest to border crossers are Bellinzona, Lugano and Mendrisio. To benefit from the - The tax credit cannot be used to pay taxes in Switzerland or Italy if the income is subject to tax in Switzerland. Comparisons: - The tax credit provided by the agreement between Italy and Switzerland is an important benefit for border workers who work in Ticino but reside in Italy. - The tax credit is not automatic and must be requested explicitly. - The tax credit cannot be used to pay taxes in Switzerland or Italy if the income is subject to tax in Switzerland. Concrete examples: - An Italian worker resides in Rezzago, Switzerland, but works in an Italian company. His working income is CHF 80,000 per year. In Switzerland, your income is subject to tax, but thanks to the tax credit provided by the agreement, you will not have to pay taxes in Italy. - Another Italian worker resides in Mendrisio, Switzerland, but works in an Italian company. His working income is CHF 60,000 per year. In Switzerland, your income is subject to tax, but thanks to the tax credit provided by the agreement, you will not have to pay taxes in Italy. Regulations: - Double taxation agreement between Italy and Switzerland, signed on 9 December 1976 and updated in 2020. - Agreement between Italy and Switzerland to avoid double taxation, signed on 23 December 2020 and entered into force on 1 January 2024. Operational checklists:

Operational details

The new tax agreement between Italy and Switzerland was signed on 23 December 2020 and will enter into force from 1 January 2024. The tax credit avoids double taxation for frontier workers. Italy signed the Double Taxation Convention with Switzerland on 9 December 1976.

The tax agreement provides that border workers resident in Switzerland and employed in Italy can benefit from a tax credit to avoid double taxation. This means that cross-border workers will not have to pay the same taxes in both countries, thus avoiding double taxation.

For example, if a worker residing in Rezzago (Switzerland) works in Lugano (Italy), they can benefit from the tax credit to avoid double taxation. The tax credit will be calculated on the basis of the worker's gross income and the duration of the work carried out in Italy.

The Double Taxation Convention between Italy and Switzerland provides that income from work carried out in one country by a worker resident in the other country is taxed only in the country of residence. This means that cross-border workers will not have to pay the same taxes in both countries.

For example, if a worker residing in Rezzago (Switzerland) works in Lugano (Italy) and earns CHF 60,000 per year, they will be eligible for the tax credit to avoid double taxation. The tax credit will be calculated based on the worker's gross income and the duration of work performed in

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Key points

The borderman must be the protagonist of the article from beginning to end. The item must provide actionable information and operational guides. Ticino, with its beautiful valleys and mountains, is an ideal place to live and work. But for frontier workers, life isn't always easy.

The life of a frontier worker is marked by many contradictions. On the one hand, they enjoy a privileged geographical position, with Italy and Switzerland at their fingertips. On the other hand, they face many bureaucratic and financial difficulties.

For example, a border worker living in Rezzago, a small municipality in the district of Lugano, can work in Switzerland as an employee in a company in Lugano. However, he faces many difficulties in obtaining the residence permit and the right to work.

Under current regulations, a border worker can work in Switzerland without a residence permit if they earn at least CHF 4,500 per month. But if he earns less, he must get a residence permit. In addition, you have to pay taxes in Switzerland and Italy.

To avoid bureaucratic and financial errors, it is important that border workers are informed about the rules in force. Here is some useful information:

• The residence permit for border workers is regulated by Article 14 of the Federal Law of 16 December 2005 on Migration.
• The application for a residence permit must be submitted to the Swiss Consulate in Italy within 8 working days from the date of arrival in

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