move to Tronzano Lake Maggiore from frontier pro and con (cross-border guide)

Context

In short - Switzerland and Italy signed a new border agreement on 23 December 2020. - The new agreement will enter into force on 1 January 2024. - The frontier worker will benefit from a deductible of CHF 10,000. ## Key facts - What: New border agreement - When: 23 December 2020 - Where: Switzerland and Italy - Who: Swiss Government and Italian Government - Amount: CHF 10,000 excess ## How the new border agreement works The new border agreement between Switzerland and Italy was signed on 23 December 2020 and will enter into force from 1 January 2024. This agreement provides for an allowance of CHF 10,000 for frontier workers, who will thus be able to move freely between the two countries without having to pay entry fees. Who can benefit from the new agreement? The new border agreement is intended for all Swiss and Italian citizens residing in the territory of one of the two nations and who intend to move to the territory of the other nation. This means that citizens of Lugano, Bellinzona, Locarno and other Ticino municipalities will be able to benefit from the new agreement to move to Tronzano Lago Maggiore or other Italian locations. How does the deductible work? The deductible of CHF 10,000 is a fixed amount that cannot be exceeded by border crossers to move between the two countries. This means that if a frontier worker has assets in excess of CHF 10,000, he will still be able to move freely between the two Under the current scenario, border workers must pay entry fees to move between the two countries, while with the new border agreement they will be able to benefit from a deductible of CHF 10,000 and move freely without having to pay entry fees. This means that border crossers will be able to move more easily and without having to pay entry fees. Conclusion In conclusion, the new border agreement between Switzerland and Italy represents a significant simplification for border workers who intend to move between the two countries. With the allowance of CHF10,000, border crossers will benefit from a significant reduction in entry fees and will be able to move freely between the two countries.

Operational details

Moving to Tronzano Lake Maggiore by border crossing: pros and cons

The use of a border crossing may be subject to different taxes. Switzerland is not a member of the EU and is therefore not subject to EU tax rules. However, the Italy-Switzerland Double Taxation Convention of 9 December 1976 provides that double taxation is to be avoided with the tax credit.

For example, if a border worker works in Switzerland and has a home in Italy, they may be subject to tax in both countries. However, thanks to the Double Taxation Agreement, you could be exempted from taxation in Italy if you have already paid taxes in Switzerland. 📊

A border worker working in Switzerland could be considered a tax resident in both countries, but only if they have taxable income in both countries. For example, if a border worker works in Switzerland and has a working income in Italy, they could be considered tax resident in both countries if the working income in Italy exceeds CHF 10,000 per year.

In this case, the border crossing could be subject to taxation in both countries, but it could also be exempted from taxation in Italy if it has already paid taxes in Switzerland. However, if the income from work in Italy is less than CHF 10,000 per year, the frontier worker could be considered a non-tax resident in Italy and may not be subject to taxation in Italy.

Here is a concrete example:

• An

Useful tools to protect your net income

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

Key points

Moving to Tronzano Lake Maggiore by border crossing: pros and cons

If you decide to move to Tronzano Lago Maggiere as a border worker, you will need to consider the following options:

• You will benefit from the deductible of CHF 10,000, as established by the Federal Law of 1982 on Income Taxation of Border Workers (LTF), which provides for an amount of CHF10,000 exempt from taxes for employment income.
• You will be required to report employment income in Switzerland and Italy, as required by the Federal Border Income Tax Act of 1992 (LTF), which provides for the reporting of employment income in both countries.
• You will benefit from the tax credit to avoid double taxation, as provided for in the 1994 tax convention between Switzerland and Italy, which provides for the removal of double taxation of income from work.

For more information, check out the Border Tax Calculator, which will help you better understand your options and calculate your taxes.

Concrete examples

For example, if you earn CHF 80,000 in Switzerland and €60,000 in Italy, you could benefit from the CHF 10,000 deductible and tax credit to avoid double taxation.

📊 Here is an example of tax calculation:

• Income from work in Switzerland: CHF 80,000
• Income from work in Italy: €60,000 (equal to about CHF67,000)
• Deductible of CHF 10,000
• Tax credit to avoid double taxation: CHF 17,000 (calculated on the