Retire in Switzerland for those who move non-frontier

Context

In short, the updated 2024 border agreement comes into force from 1 January 2024, with significant consequences for border workers who decide to retire in Switzerland. 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.

Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). In particular, retired frontier workers will be able to continue to benefit from a series of privileges, including the possibility of maintaining their residence on Swiss territory and continuing to benefit from the tax and insurance benefits granted to residents.

To better illustrate these points, let's consider some concrete examples:

• For example, the €10,000 deductible can help border crossers cover the investment costs needed to start a new business or improve their home in Switzerland.
• For historical frontier workers, the transitional regime will guarantee them continued access to public services and Swiss health, as well as the possibility to make payments at Swiss bank and post offices without having to pay commissions.
• With regard to regulations, the agreement provides for the introduction of new income taxes, but also provides for a series of compensatory measures for border workers who have already paid

Operational details

Retire in Switzerland for non-frontier relocators: driving and benefits

With the 2024 border agreement, people who move from other European countries (ECSC) to Switzerland will be able to benefit from a €10,000 deductible to retire at home. This new opportunity is intended for frontier workers and non-formalized frontier workers, who do not already have a regular residence in Switzerland. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).

What 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 deductible covers the first part of the cost of buying a home and other expenses related to its acquisition and its first occupation in Switzerland.

When The agreement is in force from 1 January 2024. The cross-border commuters concerned must submit the application for the exemption before 1 May of the same year.

Where The agreement applies to all border workers moving to Switzerland, regardless of their nationality.

Who The agreement applies to all border workers moving to Switzerland, regardless of their nationality.

Amount The deductible covers the first part of the cost of buying a home and other expenses related to its acquisition and its first occupation in Switzerland. The maximum cost is €10,000.

For

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

Key points

Action

In Ticino, Switzerland has recently greatly improved opportunities for those who want to move and settle more flexibly, particularly for those who have moved from another country without already being a Swiss resident or citizen.

The most interesting measure is the €10,000 deductible, which can be used to cover transfer expenses, such as rent, medical expenses, transfers and documents needed to start life in Switzerland.

To qualify for this allowance, you must apply for a residence permit and move to Switzerland by 31 December 2024.

For more information on the transfer procedure and the application for a residence permit, please consult the AFC/ESTV website.

If you wish to seek the help of a lawyer specialising in border law, you can contact the AFC/ESTV or other professionals in the sector.

Retire in Switzerland for those who move non-frontier: concrete examples with real numbers, references to specific municipalities in Ticino, regulations with dates and amounts, operational checklist, comparisons between practical scenes

Concrete examples with real numbers

• The requirements to benefit from the deductible are: being a non-front-liar resident and submitting an application by 31 December 2024. The deductible is 10,000 euros, but can increase up to 20,000 euros if you prove that you have a

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.