Moving to Varzo from border crossings: pros and cons (cross-border guide)

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 December 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 New Frontier Agreement provides for the creation of a transitional regime for old frontier workers, who will be exempt from a tax of €7,500. New frontier workers, on the other hand, will be subject to a deductible of €10,000.

The most important fact is that Switzerland and Italy signed the Double Taxation Convention on 9 December 1976, which avoids double taxation with the tax credit (EC framework of 730).

Key facts

• What: Double taxation agreement
• When: 9 December 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. Old frontier workers were exempted from a tax of €7,500, while new frontier workers were subject to a deductible of €10,000.

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.
• Make sure you are exempt from a tax of €7,500 if you are an old frontier worker or subject to a deductible of €10,000 if you are a new frontier worker.

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• Salary calculator for border workers.
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• Practical guide for border crossers moving to Varzo.