Living in Clivio, Ticino border worker: pros and cons (cross-border guide)

Context

In a nutshell

• Switzerland signed the New Frontier Agreement on 23 December 2020.
• The new agreement is in force from 1 January 2024.
• The G permit for frontier workers has been modified.

Key facts

• What: New Frontier Agreement
• When: 23 December 2020
• Where: Switzerland
• Who: Dry
• Amount: 0 CHF

The New Frontier Agreement was signed on 23 December 2020 and provides for significant changes for frontier workers. This agreement aims to simplify entry and work procedures for border workers, reducing costs and bureaucratic complexities.

Benefits for frontier workers

• Simplification of procedures: The new agreement provides for the creation of a single residence card for border crossers, replacing the previous G and B permits.
• Cost reduction: Border workers will no longer have to pay the registration and renewal fees of the G permit.
• Greater flexibility: The new agreement allows border workers to work in different sectors and change jobs without having to obtain a new permit.

Disadvantages for frontier workers

• Obligation to register: Border workers must register at the local office of the Immigration Office within 8 working days from the date of entry into Switzerland.
• Residence limits: Border workers cannot stay in Switzerland for more than 90 consecutive days.
• Health requirements: Border workers must demonstrate that they have adequate health coverage

Operational details

Tax Settings

Border crossers are subject to tax in both Switzerland and Italy. Italy avoids double taxation with the tax credit (EC framework of 730). Switzerland levies the tax at source only in Switzerland. The amount of tax varies by income and nationality.

The tax regime for border workers in Ticino is governed by the Income Tax Act (LISR) and the tax conventions between Switzerland and Italy. According to the law, frontier workers are considered to be resident in Switzerland if they stay more than 183 days per year in the country.

Switzerland applies the principle of territoriality, which means that the tax is due only on income produced in Switzerland. However, frontier workers are subject to an additional tax if their income is more than CHF 150,000 per year. The additional tax ranges from 2% to 4% of income above CHF 150,000.

Italy, on the other hand, applies the residence principle, which means that the tax is due on income produced in Italy. Border workers are considered residents in Italy if they stay more than 183 days a year in the country. Italy offers a tax credit to avoid double taxation, which is calculated based on the income produced in Switzerland.

Concrete example: a frontier worker works in Ticino as an engineer and earns CHF 100,000 per year. In Switzerland, you will pay an additional tax of 3% of income above CHF 150'000, so CHF 3'000. In

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Key points

Transfer Procedure

To move to Clivio, frontier workers must consider the following things:

• The permit application procedure G
• The necessary documentation
• Waiting times for permission to be granted

Concrete examples

Suppose a frontier worker wants to move to Clivio to work in a watch factory in Bioggio. To start, you will need to apply for the G permit at the Bellinzona Immigration Office, which is located in via di San Francesco, 1. Required documentation will include an application form, a valid passport, a work certificate, and a health insurance statement. Waiting times for permission to be granted can range from a few months to a year or more.

Required documentation

To apply for the G permit, border guards must provide the following documentation:

• An application form, which can be downloaded from the website of the Bellinzona Immigration Office
• A valid passport, with an expiry of at least six months
• A labor certificate attesting to their employment at the Bioggio watch factory
• A health insurance statement, attesting to the insurance coverage of the border worker

Waiting times

Waiting times for the granting of the permit may vary depending on the complexity of the application and the availability of immigration offices. In general, it is advisable to apply for permission at least six

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