Moving to Besano by border crossing: pros and cons (cross-border guide)

Context

In a nutshell

• Switzerland is not a member of the EU/EEA.
• The Italy-Switzerland double taxation agreement was signed on 9 December 1976.
• The New Frontier Agreement was signed on 23 December 2020 and will apply from 1 January 2024.
• Old frontier workers are entitled to an exemption of €7,500 in 2024, while new frontier workers have a deductible of €10,000.

Key facts

• What: New Frontier Agreement
• When: 1 January 2024
• Where: Ticino
• Who: Frontiersmen
• Amount: €7,500 (exemption) and €10,000 (deductible)

The border worker who moves to Besano from Lugano must consider the impact of the trip on their income and the taxes to be paid. Switzerland applies a tax at source on the labour income of frontier workers, while Italy avoids double taxation with the tax credit (EC framework of 730). The border company must also consider the Italy-Switzerland double taxation convention and the New Frontier Agreement.

Moving to Besano by border crossing: pros and cons

Pro

• Simplification: the New Frontier Agreement simplifies the management of taxes for border workers, reducing the complexity of the legislation.
• Exemption: Old frontier workers can benefit from an exemption of €7,500 in 2024, while new frontier workers have an exemption of €10,000.
• Ease of work: the New Frontier Agreement facilitates the work of border workers, reducing bureaucracy and

Operational details

The border worker who moves to Besano from Lugano must carefully consider the impact of the trip on their income and the taxes to be paid. Switzerland applies a tax at source on the labour income of frontier workers, while Italy avoids double taxation with the tax credit (EC framework of 730).

The border company must also consider the Italy-Switzerland double taxation convention and the New Frontier Agreement. This agreement, signed on 28 May 2007, provides that Italian border workers in Switzerland are subject to taxation in Italy, but with a tax credit for taxes already paid in Switzerland.

For example, if a border worker has a working income of CHF 50,000 in Switzerland, they will pay a 20% source tax (CHF 10,000). In Italy, you will be entitled to a tax credit of CHF 10,000 (CHF 5,000 for half your income). The border worker will thus be able to pay less tax in Italy, but will also have to consider property and other income taxes.

Another important aspect to consider is tax residency. If the frontier worker chooses to move to Besano, he/she could be considered resident in Italy and subject to taxation in Italy. In this case, you will have to pay Italian taxes on your income, including property and other income taxes.

The border agent may ask for tax advice to better understand the impacts of the trip and the options available. A tax advisor

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 Besano by border crossing, the border crossing must follow a specific procedure. The first thing to do is to submit a transfer request to the Canton of Ticino and obtain authorization for residence. This requires the completion of a specific application, which can be downloaded from the website of the Canton of Ticino. The application must be submitted by 31 December of the year preceding the year in which you wish to move.

The border crossing company must also communicate its presence in Switzerland to the Revenue Agency and apply for the tax credit (EC framework of 730). This is a tax obligation, and the border agent can ask for help from a tax advisor to complete the procedure. The notification must be made by 31 May of the year following the year in which you moved.

In addition, the border crossing company must also communicate its presence in Switzerland to the Municipality of Besano and apply for a residence permit. This requires the completion of a specific application, which can be downloaded from the website of the Municipality of Besano. The application must be submitted by 31 December of the year preceding the year in which you wish to move.

The border agent can ask for help from a tax advisor to complete the procedure. The tax advisor can help the border agent fill out the applications, calculate the contributions and communicate their presence in Switzerland to the Revenue Agency. The cost of a consultant

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