Moving to Varzo from border crossings: pros and cons
Tax settings, residence permits and working conditions: what to know before moving to Varzo as a border worker.
Context
In a nutshell
- The new Frontier Agreement was signed on 23 December 2020 and enters into force on 1 January 2024.
- Switzerland and Italy signed the Double Taxation Agreement on 9 March 1976.
- Border workers are subject to a tax at source in Switzerland, while Italy avoids double taxation with the tax credit (EC framework of 730).
Key facts
- What: New Frontier Agreement
- When: 23 December 2020
- Where: Switzerland and Italy
- Who: Swiss and Italian Government
- Amount: Not yet specified
The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies 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 neither a general allowance nor an exemption from Swiss withholding tax. The Article 9 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 income limit referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4.
The most important fact is that Switzerland and Italy signed the Double Taxation Convention on 9 March 1976, which avoids double taxation with the tax credit (EC framework of 730).
Key facts
- What: Double taxation agreement
- When: 9 March 1976
- Where: Switzerland and Italy
- Who: Swiss and Italian Government
- Amount: Not yet specified
The Double Taxation Convention provides for the creation of a tax credit scheme for frontier workers, which avoids double taxation.
LEAD
The New Frontier Agreement and the Double Taxation Convention are two important agreements that have changed the lives of border workers. The New Frontier Agreement provides for the creation of a
Operational details
The New Frontier Agreement and the Double Taxation Convention are two important agreements that have changed the lives of border workers. The New Frontier Agreement provides for the creation of a transitional regime for old frontier workers, while the Double Taxation Convention avoids double taxation with the tax credit (EC framework of 730).
Practical analysis
The New Frontier Agreement and the Double Taxation Convention have led to greater flexibility for frontier workers. The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies 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 neither a general allowance nor an exemption from Swiss withholding tax.
Action
If you are a frontier worker moving to Varzo, it is important to know about the new agreements and how they apply to you. The New Frontier Agreement and the Double Taxation Convention are two important tools to help you better understand your situation.
FAQ
- What is the New Frontier Agreement?
The New Frontier Agreement is an agreement between Switzerland and Italy that provides for the creation of a transitional regime for old frontier workers.
- What is the Double Taxation Convention?
The Double Taxation Convention is an agreement between Switzerland and Italy that avoids double taxation with the tax credit (EC framework of 730).
- How do the new agreements apply to me?
The new agreements apply to you based on your specific situation. It is important to consult a professional to better understand how you
Recommended tools
For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.
Key points
If you are a frontier worker moving to Varzo, it is important to know about the new agreements and how they apply to you. The New Frontier Agreement and the Double Taxation Convention are two important tools to help you better understand your situation.
Action
- Consult a professional to better understand how the new agreements apply to you.
- Read the new agreements and how they apply to you carefully.
- The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies 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 neither a general allowance nor an exemption from Swiss withholding tax.
CTA
- Salary calculator for border workers.
- Comparator of residence permits for border crossings.
- Practical guide for border crossers moving to Varzo.
Frequently Asked Questions
- What is the New Frontier Agreement?
- The New Frontier Agreement is an agreement between Switzerland and Italy that provides for the creation of a transitional regime for old frontier workers.
- What is the Double Taxation Convention?
- The Double Taxation Convention is an agreement between Switzerland and Italy that avoids double taxation with the tax credit (EC framework of 730).
- How do the new agreements apply to me?
- The new agreements apply to you based on your specific situation. It's important to consult a professional to better understand how they apply to you.
- 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 can I calculate my salary?
- You can use the frontier salary calculator to calculate your salary.
- How do I get a residence permit?
- You can use the border residence permit comparator to obtain a residence permit.
- How can I move to Varzo?
- You can consult the practical guide for border crossers who move to Varzo for information on how to move to Varzo.