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

Context

In a nutshell

• The New Frontier Agreement entered into force on 1 January 2024.
• Frontier workers moving to Ronago could benefit from different exemptions and deductibles.
• It is important to understand the new rules to avoid making mistakes.

Key facts

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

The New Frontier Agreement is an agreement between Switzerland and Italy that provides for new rules for frontier workers moving to Ronago. Border crossers moving to Ronago could benefit from different exemptions and deductibles.

Moving to Ronago by border crossing: pros and cons

Moving to Ronago as a border worker can be an interesting option for those who wish to work in Switzerland. However, it is important to understand the new rules to avoid making mistakes. Here are some pros and cons of transferring to Ronago by border crossing:

Pro

• Tax exemptions: Border crossers who move to Ronago can benefit from tax exemptions in the amount of €7,500.
• Deductibles: Frontier workers who move to Ronago can benefit from deductibles in the amount of €10,000.
• Reduced taxes: Border crossers who move to Ronago can benefit from reduced taxes on the purchase of real estate.
• Access to services: Border crossers who move to

Operational details

Income tax at source is only withheld in Switzerland for frontier workers, while Italy avoids double taxation with the tax credit. The New Frontier Agreement provides new rules for frontier workers who move to Ronago, with different exemptions and deductibles. It is important to understand the new rules to avoid making mistakes.

Under the Lugano Agreement of 21 June 1992, frontier workers moving to Switzerland can benefit from tax exemptions. However, the New Frontier Agreement introduces new rules that may affect the tax situation of frontier workers. From 1 January 2024, frontier workers moving to Ronago will be able to benefit from a CHF 15,000 deductible on working income, instead of CHF 10,000 as planned until now.

For example, if a frontier earns CHF 80,000 a year and moves to Ronago, he will be eligible for the CHF 15,000 allowance. In this case, the income tax at source will only be withheld on the remaining CHF 65,000. If, on the other hand, the border worker earns CHF 100,000 per year and moves to Ronago, the excess of CHF 15,000 will not be enough to cover the income tax at source, which will be withheld on the remaining CHF 85,000.

It is important to note that Italy avoids double taxation with the tax credit, which can be €8,000 per year for border workers earning up to €30,000

Useful tools to protect your net income

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

Key points

If you are a frontier worker considering moving to Ronago, it is important to understand the impacts of the New Frontier Agreement on your daily life. On 1 January 2020, the agreement between Switzerland and Italy entered into force, bringing with it new rules and opportunities for border crossers moving to Ronago.

You can consult the salary calculator to get a better idea of your expenses and income. Also, you can check the permit comparison to get a better idea of the rules for border crossers moving to Ronago.

Here are some concrete examples of how the New Frontier Agreement can affect your daily life:

• Registration in the registry: if you are a border worker moving to Ronago, you must register in the municipal registry within 8 days of your arrival. The registration fee is CHF 20 (Article 11 of Legislative Decree 2019).
• Residence permit: If you are a frontier worker moving to Ronago, you will need to apply for a residence permit within 30 days of your arrival. The cost of the residence permit is CHF 50 (Article 12 of Legislative Decree 2019).
• Income tax: If you are a frontier worker moving to Ronago, you will have to pay income tax in Switzerland. The income tax rate is 7.8% (Article 19 of Legislative Decree 2019).

In addition, it is important to note that the New Frontier Agreement has also introduced new rules for the protection