Moving to Cernobbio from border crossings: pros and cons (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024.
• Border crossers will benefit from a deductible of €10,000.
• Italy avoids double taxation with the tax credit (EC framework of 730).
• Tax at source on earned income will only be withheld in Switzerland.

What does it mean to move to Cernobbio as a border worker?

Moving to Cernobbio as a border worker means benefiting from a more favourable tax regime than that of Italian citizens. Thanks to the New Frontier Agreement, frontier workers will be able to work in Switzerland without having to pay income tax in Italy.

Exemplifying Benefits

Let's imagine we have a frontier worker who earns €60,000 a year working in Switzerland. Thanks to the New Frontier Agreement, you will benefit from a deductible of €10,000, so you will only have to pay income tax on the last €50,000 earned.

In addition, Italy avoids double taxation with the tax credit (EC framework of 730), so the worker can deduct the tax paid in Switzerland from the tax due in Italy.

Example of a comparison between practical scenarios

Suppose we have two frontier workers, one earning €50,000 per year and the other earning €100,000 per year. Both work in Switzerland and have the same residence in Italy.

• Without the New Frontier Agreement,

Operational details

Key facts

• What: Transfer to Cernobbio from border crossers.
• When: January 1, 2024.
• Where: Cernobbio.
• Who: Frontalieri.
• Amount: €10,000 deductible.

Moving to Cernobbio as a border worker: pros and cons

The transfer to Cernobbio by frontier is an interesting option for Swiss citizens working in Italy. From 1 January 2024, in fact, Italy has introduced a €10,000 deductible for Swiss border workers who intend to move to the country.

Pro

• More job opportunities: Cernobbio is an important economic center and offers many job opportunities in various sectors.
• Lower cost of living: Compared to other Italian cities, Cernobbio offers a lower cost of living, making life more accessible for border crossers.
• Ease of movement: Cernobbio's geographical location makes it easy to move between Switzerland and Italy.

Against

• Permit application: To move to Cernobbio, Swiss border workers must apply for a residence permit at the Office of First Instance in Lugano.
• Documentation: Full documentation is required, including income statement and proof of a minimum monthly income of €2,000.
• Property tax: Swiss border workers buying a property in Cernobbio must pay property tax, which ranges from 0.5% to 1.5% of the value of the property.

Concrete examples

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Recommended tools

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Key points

Moving to Cernobbio from border crossings: pros and cons

The border worker who moves to Cernobbio, a municipality located in the province of Como, must submit the transfer request to the Canton of Ticino and obtain a residence permit. In addition, you will need to check your tax and insurance situation. It is advisable to consult a lawyer and a tax advisor for more precise information about your situation.

The transfer request

The transfer request must be submitted to the Canton of Ticino within 30 days of the transfer date. The border worker will need to provide appropriate documentation, such as identity card, passport and employment contract. The transfer request must be submitted to the Labour Office of the Canton of Ticino, which is located in Bellinzona. 📊

The tax situation

The tax situation is an important aspect to consider when moving to Cernobbio. The border agent will have to check if it is subject to taxation in Switzerland and Italy. In the case of dual residence, the border worker must submit the tax return both in Switzerland and in Italy. It is advisable to consult a tax advisor to avoid taxation errors.

The insurance situation

The insurance situation is another important aspect to consider when moving to Cernobbio. The border agent will have to check if he is covered by insurance

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