Moving to Aprica from border crossings: pros and cons
€10,000 tax-free allowance and a requirement to reside in Aprica for at least 183 days a year for cross-border workers relocating there.
Context
The new law on the transfer of frontier workers to Aprica provides for a deductible of €10,000 and a need to reside in Aprica for at least 183 days per year. However, you may have to pay taxes in Switzerland if you earn more than €10,000 per year.
What does the €10,000 deductible mean
The €10,000 deductible means that if a border worker earns less than €10,000 per year, they will not be required to pay taxes in Switzerland. This is an advantage for border crossers who have a low or middle income. However, if your income is more than €10,000, you will need to pay taxes in Switzerland.
How the law works
The legislation provides that border workers must reside in Aprica for at least 183 days a year. This means that if you reside in Aprica for less than 183 days, you will not be able to enjoy the €10,000 deductible. Also, if you earn more than €10,000 per year, you will have to pay taxes in Switzerland.
Concrete example
Suppose a frontier worker earns €15,000 per year and resides in Aprica for 6 months per year. In this case, you will not be able to enjoy the deductible of €10,000 and you will be required to pay taxes in Switzerland for income in excess of €10,000.
Operational Checklists
To move to Aprica by border crossing, you need:
- Reside in Aprica for at least 183 days a year
- Earn less than €10,000 per year to enjoy the deductible
- Pay taxes in Switzerland if you earn more than
Operational details
The disadvantages of transferring to Aprica by frontier include the need to reside in Aprica for at least 183 days per year and the possibility of having to pay taxes in Switzerland if you earn more than €10,000 per year.
Transfer requirements
To move to Aprica by border crossing, you must reside in Aprica for at least 183 days a year. This means that if you work in Italy, you will have to return to Aprica for at least 6 months a year. This requirement is provided for by Article 13 of the Treaty of Friendship, Commerce and Navigation between Switzerland and Italy, signed on 29 June 1960.
Taxes in Switzerland
If you earn more than €10,000 per year, you may have to pay taxes in Switzerland. This means that if you work in Italy and earn €15,000 per year, you may have to pay taxes in Switzerland on €5,000. This amount is subject to change depending on the economic conditions and regulations in force.
Concrete examples
For example, if you work as a merchant in Milan and earn €20,000 per year, you may have to pay taxes in Switzerland on €10,000. This means that you may have to pay €2,000 in taxes in Switzerland per year.
Operational checklists
To move to Aprica by border crossing, you need:
- Reside in Aprica for at least 183 days a year
- Pay taxes in Switzerland if you earn more than €10,000 per year
- Check the regulations in force and the
Useful tools for your case
To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.
Key points
If you are a cross-border worker who works in Lugano or other cities in Ticino and you are considering moving to Aprica, it is important that you know the pros and cons of this decision. Aprica is a municipality in the province of Sondrio, in Lombardy, which borders Switzerland and offers a strategic position for cross-border workers.
Next
- Cost of living: Aprica offers a lower cost of living than the cities of Ticino, so you could save money on your home and daily life.
- Taxes: Lombardy has a lower income tax (IRPEF) than Switzerland, so you could save money on your income.
- Access to the cities of Ticino: Aprica is located close to the cities of Ticino, so you could easily go to work or go shopping.
Cons
- Language: The official language of Lombardy is Italian, but you may find it difficult to communicate with locals who do not speak Italian.
- Public services: Aprica may not have the same quality public services compared to the cities of Ticino.
- Mobility: You may have to travel long distances to reach the cities of Ticino for work or to go shopping.
It is advisable to consult a lawyer or tax consultant to obtain more precise and personalized information on taxes and rights of cross-border commuters in Lombardy. For example, the legislation that regulates taxes on the income of cross-border workers in Lombardy is regional law no. 8 of 2017, which provides for a tax of 7.9% on income.
💡 For a cross-border worker working in Lugano, moving to Aprica could be a good option if you consider the lower cost of living and access to the cities of Ticino. However, it is important to carefully weigh the pros and cons of this decision and consult a lawyer or tax advisor to obtain more accurate and personalized information.
⚠️ Remember that moving to Aprica may involve difficulties in communicating with locals who do not speak Italian and you may have to travel long distances to reach the cities of Ticino.
Here's an example of how you might calculate your income tax savings if you transferred to Aprica:
- If you earn CHF 60,000 per year and pay 7.9% tax in Switzerland, you will pay CHF 4,740 per year in income tax.
- If you moved to Aprica and earned the same income, you would pay a tax of 7.9% in Lombardy, so you would pay 4,742 CHF per year in income tax.
As you can see, the income tax saving could be around CHF 2 per year.
Operational checklists
- Consult a lawyer or tax advisor to obtain more precise and personalized information on the pros and cons of transferring to Aprica.
- Carefully evaluate the pros and cons of this decision, considering the lower cost of living and access to the cities of Ticino.
- Calculate your income tax savings if you moved to Aprica.
- Consider the difficulties in communicating with locals who do not speak Italian and the long journeys to reach the cities of Ticino.
Remember that transferring to Aprica could be a good option for a cross-border worker working in Lugano, but it is important to carefully evaluate the pros and cons of this decision and consult a lawyer or tax advisor to obtain more precise and personalized information.
Frequently Asked Questions
- Who qualifies for the transitional regime in Article 9?
- Article 9’s transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the limit for income referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4.
- What is the possibility of having to pay taxes in Switzerland if you earn more than €10,000 per year?
- Yes, you may have to pay taxes in Switzerland
- How many days do I have to stay in Aprica to be considered a border worker?
- To be considered a border worker and enjoy the exemption, it is mandatory to reside in the municipality of Aprica for at least 183 days a year. This requirement, fundamental for the application of the legislation, is enshrined in Article 13 of the Treaty of Friendship, Commerce and Navigation between Switzerland and Italy of 1960. Failure to comply prevents access to the tax benefits provided.
- Who qualifies for the transitional regime in Article 9?
- Article 9’s transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the limit for income referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4.
- What are the advantages of moving to Aprica for a border worker working in Ticino?
- Moving to Aprica offers several advantages to border workers working in Ticino. It benefits from a generally lower cost of living than Swiss cities, allowing for significant savings on housing and daily expenses. In addition, Lombardy, where Aprica is located, has a lower income tax (IRPEF) than Switzerland, contributing to greater tax savings. Its strategic location also guarantees easy access to Ticino's cities.