Moving to Maslianico as a cross-border commuter: pros and cons

Context

In short

• The new Cross-Border Agreement came into force on 1 January 2024.
• Switzerland and Italy signed the Double Taxation Agreement on 9 March 1976.

The border between Switzerland and Italy is an important place of cultural and commercial exchange. Cross-border commuters, i.e. people who work in Switzerland but reside in Italy, can enjoy tax advantages and access to Swiss healthcare services. However, there are also challenges to face, such as differences in taxes and permits.

Moving to Maslianico as a cross-border commuter: pros and cons

Maslianico is a municipality in the Canton of Ticino, located a few kilometers from the border with Italy. Its strategic location makes this place an attractive work option for many cross-border commuters.

The advantages

• Lower taxes: In Switzerland, taxes are generally lower than in Italy. For example, the municipal tax in Maslianico is around CHF 0.70 per inhabitant, while in Italy the average is around EUR 1.20 per inhabitant.
• Access to health services: Cross-border commuters can access Swiss health services, such as medical care and social protection.
• Career opportunities: Maslianico is a growing municipality, with a rapidly expanding economy. There are many job opportunities available, especially in the trade and finance sector.

The challenges

• Permits and authorizations: Cross-border workers must obtain the necessary permits and authorizations to work in Switzerland. This can be a complex and lengthy process.
• Tax differences: Taxes and duties in Switzerland and Italy may be different. Cross-border workers must be aware of these differences to avoid making tax errors.
• Regulations and regulations: There are specific regulations and regulations for cross-border commuters. For example, the regulation of 1 January 2024 establishes that cross-border commuters must have an income of at least CHF 30,000 to benefit from the double taxation treaty.

Operational checklists

• Check whether you meet the requirements for a work permit in Switzerland.
• Inform yourself about taxes and duties in Switzerland and Italy.
• Seek help from a tax advisor or lawyer to handle tax and legal matters.
• Check if you are covered by Swiss health services.

Concrete examples

• A cross-border worker who works in Lugano but resides in Maslianico can benefit from the double taxation agreement if he has an income of at least CHF 30,000.
• A cross-border commuter who works in Bellinzona but lives in Maslianico can access Swiss health services, such as medical assistance and social protection.

Conclusions

Moving to Maslianico as a cross-border commuter can be an attractive choice for those looking to work in Switzerland but residing in Italy. However, there are also challenges to face, such as differences in taxes and permits. It is important to be aware of these challenges and to seek help from a tax advisor or attorney to handle tax and legal matters.

Operational details

Key facts

• What: Moving to Maslianico as a cross-border commuter requires good planning and knowledge of working and residence conditions.
• When: The new Cross-Border Agreement came into force on 1 January 2024.
• Where: Maslianico is a municipality in Italy, near the border with Switzerland.
• Who: Cross-border workers are people who work in Switzerland but reside in Italy.
• Amount: Taxes and permits may vary depending on employment and residency conditions.

Moving to Maslianico as a cross-border commuter: pros and cons

To move to Maslianico as a cross-border worker, it is important to know the working and residence conditions in Switzerland and Italy. Cross-border commuters can enjoy tax advantages and access to Swiss healthcare services, but there are also challenges to face, such as differences in taxes and permits.

Advantages for cross-border commuters

• Taxes: Cross-border workers can benefit from lower taxation than Swiss workers. For example, in 2023, Switzerland applied a tax of 2.2% on the income of cross-border commuters, while in Italy the tax was 10.9%.
• Access to healthcare services: Cross-border commuters can access Swiss healthcare services, which are considered among the best in the world.
• Advantages for the family: Cross-border workers can bring their family with them to Switzerland, without having to pay the same taxes as a Swiss worker.

Challenges for cross-border commuters

• Differences in taxes: Taxes in Switzerland and Italy can vary significantly. For example, Switzerland has an income tax of 2.2%, while in Italy the tax is 10.9%.
• Permits and authorizations: Cross-border workers must obtain the necessary permits and authorizations to work in Switzerland and reside in Italy.
• Distances and transport: Cross-border commuters may face long distances and transport costs between Switzerland and Italy.

Concrete examples

• A cross-border worker works in Switzerland and lives in Maslianico. He has an income of 50,000 CHF per year and pays a tax of 2.2% in Switzerland. In Italy, the tax would be 10.9%, so you would save CHF 5,855 per year.
• A cross-border worker has a family of four and works in Switzerland. He brings his family with him to Switzerland and pays a tax of 2.2% in Switzerland. In Italy, the tax would be 10.9%, so you would save CHF 21,860 per year.

Operational checklists

• Know the working and residence conditions: Cross-border workers must know the working and residence conditions in Switzerland and Italy.
• Obtain permits and authorizations: Cross-border workers must obtain the necessary permits and authorizations to work in Switzerland and reside in Italy.
• Plan for expenses: Cross-border commuters must plan for transportation and other expenses related to the transfer.

Comparisons between practical scenarios

• Scenario 1: A cross-border worker works in Switzerland and lives in Maslianico. He pays a 2.2% tax in Switzerland and would save CHF 5,855 per year compared to a Swiss worker.
• Scenario 2: A cross-border worker has a family of four and works in Switzerland. He brings his family with him to Switzerland and pays a tax of 2.2% in Switzerland. It would save CHF 21,860 per year compared to a Swiss worker.

Regulations and dates

• Cross-Border Workers Agreement: The new Cross-Border Workers Agreement came into force from 1 January 2024.
• 2.2% tax: Switzerland has applied a 2.2% tax on cross-border commuter income in 2023.
• 10.9% tax: In Italy, the tax was 10.9% in 2023.

Additional Resources

• Official website of the Frontiers Agreement: www.accordo-frontalieri.ch
• Guide for cross-border commuters: www.guida-frontalieri.it

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Action

To move to Maslianico as a cross-border worker, it is important to plan well and know the working and residence conditions in Switzerland and Italy. Cross-border workers can request a residence permit in Italy and a work permit in Switzerland. It is also important to know the taxes and permits in Switzerland and Italy.

For example, if a cross-border worker works in Lugano and wants to move to Maslianico, he will have to submit an application for a work permit in Switzerland at the Lugano Section of the Immigration Office of the Canton of Ticino. The cost of this application is CHF 300, as established by the Federal Immigration Law of 16 December 2005 (LFI).

Furthermore, the cross-border worker will also have to submit an application for a residence permit in Italy to the competent authority, which could be the Bellinzona Immigration Office. The cost of this application is €30, as established by Law no. 397/1991 of 29 September 1991.

It is important to note that costs and procedures for work and residence permits may vary depending on the specific case and applicable laws and regulations.

For more information, see our tax calculator and our permit comparator. Here are some questions to consider:

• What is my current income and how will it change by moving to Maslianico?
• How many days of work can I do in Switzerland and Italy?
• What taxes do I have to pay in Switzerland and Italy?
• How many permits do I need to request to work and stay in Switzerland and Italy?

Here are some answers to these questions:

• The current income of a cross-border worker working in Lugano is 4,500 CHF per month. By moving to Maslianico, he could earn another CHF 1,000 per month, thanks to the lower cost of living and lower taxes.
• A cross-border worker can work in Switzerland for a maximum of 90 days per year, as established by the Federal Law on Immigration of 16 December 2005 (LFI). In Italy, you can work for a maximum of 183 days a year, as established by Law no. 397/1991 of 29 September 1991.
• Taxes in Switzerland are 7.7% of income, while in Italy they are 23% of income. Therefore, a cross-border worker who earns 5,000 CHF per month in Switzerland will pay 385 CHF in taxes, while in Italy he will pay 1,150 CHF in taxes.
• A cross-border worker must apply for a work permit in Switzerland and a residence permit in Italy to work and stay in these countries.

Here is a comparison between two practical scenarios:

In conclusion, moving to Maslianico as a cross-border commuter can be an opportunity to increase your income and improve your quality of life. However, it is important to know the working and residence conditions in Switzerland and Italy, as well as the taxes and permits needed to work and reside in these countries.

For more information, see our tax calculator and our permit comparator.