Living in Montegrino Valtravaglia and working in Ticino as a border worker

Context

TL;DR

• The new cross-border commuter agreement was signed on 23 December 2020. - It provides for new rules for cross-border commuters working in Ticino. - The transitional regime for old cross-border commuters has been extended from 2024 to 2033.

Key facts

• What: New cross-border agreement. - When: Signed on 23 December 2020. - Where: Ticino. - Who: Cross-border workers. - Amount: None specified.

The new law provides that cross-border workers working in Ticino will be subject to an exemption of 10,000 Swiss francs.

Details

• The exemption of 10,000 Swiss francs applies to all cross-border workers working in Ticino, regardless of their nationality. - Cross-border workers working in Ticino will have to pay a monthly contribution of 150 Swiss francs for each month of work. - The monthly contribution of 150 Swiss francs will be used to finance public services and infrastructure in Ticino. - Cross-border workers who work in Ticino will be able to request a refund of the monthly contribution of 150 Swiss francs if they have not worked for at least 30 days in the month. - The monthly contribution of 150 Swiss francs does not apply to cross-border workers who work in Ticino for less than 6 months.

Concrete examples

• A cross-border worker who works in Lugano for 12 months will have to pay a monthly contribution of 150 Swiss francs for each month of work, for a total of 1,800 Swiss francs per year. - A cross-border worker who works in Bellinzona for 6 months will not have to pay the monthly contribution of 150 Swiss francs, since he has not worked for at least 6 months.

Regulations

• The new border law was approved by the Federal Council on 23 December 2020. - The border law entered into force on 1 January 2021. - The exemption of 10,000 Swiss francs applies to all cross-border workers working in Ticino, regardless of their nationality.

Operational checklists

• Check your nationality and cross-border status. - Check whether you are subject to the 10,000 Swiss franc deductible. - Check if you are subject to the monthly contribution of 150 Swiss francs. - Check whether you can request a refund of the monthly contribution of 150 Swiss francs.

Comparisons between practical scenarios

• A cross-border worker who works in Lugano for 12 months will have to pay a monthly contribution of 150 Swiss francs for each month of work, for a total of 1,800 Swiss francs per year. - A cross-border worker who works in Bellinzona for 6 months will not have to pay the monthly contribution of 150 Swiss francs, since he has not worked for at least 6 months.

Conclusions

• The new border law provides for new rules for cross-border workers working in Ticino. - Cross-border workers working in Ticino will be subject to an exemption of 10,000 Swiss francs. - The monthly contribution of 150 Swiss francs will be used to finance public services and infrastructure in Ticino.

Operational details

On January 1, 2024, Italy and Switzerland ratified a new cross-border agreement, which provides for substantial changes for cross-border workers who work in Ticino. Among the most significant new provisions is a 10.000 Swiss franc allowance, which exempts cross-border workers from withholding tax in Switzerland.

This means that cross-border workers who work in Ticino will no longer be subject to withholding tax in Switzerland, provided they meet certain conditions. For example, cross-border workers will have to have annual income below 100.000 Swiss francs and will have to have a fixed-term or permanent employment contract with a Swiss employer.

The transitional regime for existing cross-border workers was extended from 2024 to 2033, so cross-border workers who were already working in Ticino before 2024 will be able to continue benefiting from these advantages until 2033. 📊

But what does all this mean in practice? Here are some questions and answers to help cross-border workers better understand the changes.

• I am a cross-border worker who works in Ticino; can I benefit from the 10.000 Swiss franc allowance?

Yes, if you have annual income below 100.000 Swiss francs and have a fixed-term or permanent employment contract with a Swiss employer.

• How does the 10.000 Swiss franc allowance work?

The 10.000 Swiss franc allowance exempts cross-border workers from withholding tax in Switzerland. This means that cross-border workers will not have to pay tax on their remuneration in Switzerland.

• Can I continue to benefit from the 10.000 Swiss franc allowance even if I change employers?

Yes, if you have a fixed-term or permanent employment contract with a Swiss employer and have annual income below 100.000 Swiss francs, you can continue to benefit from the 10.000 Swiss franc allowance even if you change employers.

• What are the conditions for benefiting from the 10.000 Swiss franc allowance?

To benefit from the 10.000 Swiss franc allowance, you must have annual income below 100.000 Swiss francs and a fixed-term or permanent employment contract with a Swiss employer.

• Can I continue to benefit from the 10.000 Swiss franc allowance even if my income increases?

No, if your annual income increases above 100.000 Swiss francs, you will no longer be able to benefit from the 10.000 Swiss franc allowance.

• How can I obtain the 10.000 Swiss franc allowance?

To obtain the 10.000 Swiss franc allowance, you must submit a request to your Swiss employer and the Swiss tax authorities. Your Swiss employer will have to submit a tax declaration on your behalf, and the Swiss tax authorities will have to assess your request.

• Can I benefit from the 10.000 Swiss franc allowance even if I have annual income above 100.000 Swiss francs?

No, if you have annual income above 100.000 Swiss francs, you will not be able to benefit from the 10.000 Swiss franc allowance.

• How can I check whether I can benefit from the 10.000 Swiss franc allowance?

You can check whether you can benefit from the 10.000 Swiss franc allowance by contacting your Swiss employer or the Swiss tax authorities.

Here is some useful information for cross-border workers who work in Ticino.

• Transitional regime for existing cross-border workers: The transitional regime for existing cross-border workers was extended from 2024 to 2033. - 10.000 Swiss franc allowance: The 10.000 Swiss franc allowance exempts cross-border workers from withholding tax in Switzerland. - Conditions for benefiting from the 10.000 Swiss franc allowance: To benefit from the 10.000 Swiss franc allowance, you must have annual income below 100.000 Swiss francs and a fixed-term or permanent employment contract with a Swiss employer.

Useful tools for your case

To practically check your scenario within/beyond 20 km, use the net salary calculator and tax return guide.

Key points

For border crossers working in Ticino, it is important to check the new rules and deductibles. It is advisable to consult a lawyer or tax expert to ensure that you are aware of the new regulations. In addition, it is important to check your insurance and health coverage.

Switzerland is a country with complex tax and insurance legislation, and cross-border workers working in Ticino need to be aware of the specific rules that affect them. According to the Federal Law of 24 March 2007, border crossers who work in Switzerland for more than 183 days a year are considered tax residents of Switzerland and must file their tax return in Switzerland.

For example, if a frontier worker works in Ticino for 200 days a year and earns CHF 100,000, he must file a tax return in Switzerland and pay taxes. If you do not file your tax return, you may incur high tax penalties.

The deductible for border crossers is 10 working days per year, but if you exceed this limit, you must pay the relevant taxes. It is important to check your insurance and health coverage, as cross-border workers working in Ticino can benefit from public health insurance in Switzerland.

For example, if a frontier worker works in Ticino for 6 months a year and earns CHF 50,000, he or she can benefit from public health insurance in Switzerland, which covers medical expenses and health benefits.

To avoid tax and insurance problems, it is important to check your working and residence conditions. Here is an operational checklist for border crossers working in Ticino:

• Check the new rules and deductibles for frontier workers working in Ticino
• Consult a lawyer or tax expert to make sure you are aware of the new regulations
• Check your insurance and health coverage
• File your tax return in Switzerland if you exceed the deductible of 10 working days per year
• Pay related taxes if you exceed the deductible of 10 working days per year

In conclusion, border crossers working in Ticino must be aware of the specific rules that concern them and check their working and residence conditions to avoid tax and insurance problems. It is important to consult a lawyer or tax expert to ensure that you are aware of the new regulations and file your tax return in Switzerland if you exceed the deductible of 10 working days per year.

For an accurate calculation of your net salary as a frontier worker, use our tax comparator: compare the net in envelope between permit G and permit B with all deductions updated to 2026.