Moving to Claino con Osteno as a border worker: pros and cons

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A frontaliere who works in Ticino and resides in Italy is faced with the choice of moving to Claino with Osteno.

What should a border worker who works in Ticino and resides in Italy consider before moving to Claino con Osteno?

Context

In a nutshell

  • Switzerland is not a member of the EU/EEA.
  • The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024.
  • Frontier workers can benefit from a deductible of €10,000.

Moving to Claino with Osteno from border crossing: pros and cons

If you are a border worker living in a Swiss municipality such as Claino con Osteno and working in an EU/EEA country, you may be interested in moving permanently to Italy. But what happens to your rights and responsibilities?

Right to work

Under the New Frontier Agreement, frontier workers can work in Italy without needing a work visa, but must register with the Bellinzona Chamber of Commerce and Industry within 30 days of their arrival. In addition, they must have an employment contract written and signed by both parties.

Concrete example: if a border worker works as a cook in a restaurant in Bellinzona, but wants to move to Claino con Osteno, he must register with the Bellinzona Chamber of Commerce and Industry and have a written and signed employment contract.

Taxes and contributions

Mandatory Swiss and Italian social security contributions are separate from the calculation of income tax. Article 4 of Italian Law No. 83/2023 applies this limit exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance or an exemption from Swiss withholding tax. In addition, they must register with the Italian Revenue Agency and pay income taxes.

Concrete example: if a border worker works as an employee in an Italian company in

Operational details

Key facts

  • What: the New Frontier Agreement.
  • When: signed on 23 December 2020, entered into force on 1 January 2024.
  • Where: Switzerland.
  • Who: Frontier workers.
  • Amount: €10,000.

Introduction

The New Frontier Agreement, signed on 23 December 2020, entered into force on 1 January 2024. This agreement aims to simplify border transfers between Switzerland and Italy, ensuring greater flexibility and security for the citizens involved.

Benefits of the New Frontier Agreement

  • Transparency and ease: The New Frontier Agreement guarantees greater transparency and ease in border transfers, reducing waiting times and costs associated with bureaucratic procedures.
  • Greater security: the agreement guarantees greater security for the citizens involved, thanks to the creation of a more efficient monitoring and control system.
  • Job opportunities: The New Border Agreement offers job opportunities to the citizens involved, thanks to the creation of jobs in border areas.

Concrete examples

  • Example 1: a border worker resident in Claino con Osteno (CH) works in Lugano (CH) and receives a salary of €5,000 per month. Thanks to the New Frontier Agreement, you can move to Lugano without having to pay taxes of €10,000.
  • Example 2: a border worker resident in Claino con Osteno (CH) works in Como (IT) and receives a salary of €4,000 per month.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

Tax Settings

Border workers working in Ticino and residing in Italy should consider tax settings before moving to Claino con Osteno. The New Frontier Agreement provides for a deductible of €10,000 for new frontier workers. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).

Transitional regime

This means they won't be subject to the most stringent tax settings. However, it is important to note that the transitional regime is not automatic and border workers must request authorisation from the Council of State.

Deductible for new frontier workers

The €10,000 deductible for new frontier workers is great news for those considering moving to Claino con Osteno. This exemption means that new frontier workers will not be subject to the most stringent tax settings for the first 5 years of work. However, it is important to note that the deductible is not valid if the border worker has already worked in Ticino before 2024.

Concrete examples

Let's imagine that we have a border worker who works in Ticino and resides in Italy. He decides to move to Claino with Osteno and work as an employee in a bank in Lugano. His monthly salary is €4,000. Under the New Frontier Agreement, he will be able to benefit from the deductible of €10,000 for

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.

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.
How does the transitional regime work?
Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).
What should a border worker consider before moving to Claino con Osteno?
A border worker working in Ticino and residing in Italy must consider tax settings before moving to Claino con Osteno.

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