How much does a border pharmacist earn in Ticino?
The New Frontier Agreement provides for a deductible of €10,000 for new frontier workers.
Context
In a nutshell
- The New Frontier Agreement was signed on 23 December 2020.
- The deductible for new frontier workers is €10,000.
- Frontier workers are exempt from tax at source in Italy.
Who are border pharmacists in Ticino?
Border pharmacists in Ticino are workers who reside abroad and work in Switzerland. Under Swiss law, border workers can work in Switzerland without obtaining a visa or residence permit. However, they must comply with Swiss tax and labour regulations.
Concrete example: a border pharmacist in Ticino
Let's imagine we have a border pharmacist working in a pharmacy in Lugano, Switzerland. The border pharmacist resides in Bellinzona and works in Lugano. His monthly salary is about €6,000.
Taxes and contributions
The border pharmacist is subject to Swiss taxes and contributions. Switzerland applies a tax rate of 10% for employment income. In addition, the border pharmacist must pay social security and welfare contributions.
Concrete example: taxes and contributions
Suppose the border pharmacist has a monthly salary of €6,000. Its tax at source in Switzerland would be about €600 (10% of €6'000). In addition, the border pharmacist has to pay social security and welfare contributions of around €400.
Operational Checklists
To work as a border pharmacist in
Operational details
Practical analysis
The remuneration of a border pharmacist in Ticino depends on several factors, such as his experience and specialization. However, the €10,000 deductible for new frontiersmen can be a significant advantage.
The remuneration of border pharmacists in Ticino
The remuneration of border pharmacists in Ticino is regulated by the Convention between Switzerland and the European Union on the Movement of Workers (CMU), signed on 21 June 1999. According to Article 13 of the CMU, frontier workers are entitled to a deductible of €10,000 for the first 5 years of work in Switzerland.
Concrete examples
Suppose you have a border pharmacist working in a pharmacy store in Lugano. He has 5 years of experience and a specialization in clinical pharmacology. His monthly remuneration is €8,500, plus a deductible of €2,000 per month for the first 5 years of work.
Here is an example of how your remuneration might be calculated:
- €8,500 (monthly) x 12 (months) = €102,000 (annual)
- €102'000 (annual) + €10'000 (deductible) = €112'000 (annual)
Laws and regulations
The Convention between Switzerland and the European Union on the Movement of Workers (CMU) was signed on 21 June 1999 and entered into force on 1 June 2002. 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.
Useful tools to protect your net income
To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.
Key points
Action
For new frontier workers, it is advisable to check the €10,000 deductible and see if it applies to them as well. In addition, it is important to check the tax rates in Italy and Switzerland to avoid double taxation.
In Ticino, border pharmacists are subject to a specific tax regime. According to current legislation, Switzerland and Italy have entered into an agreement to prevent double taxation. The agreement provides that the incomes of border workers are taxed only in the country of residence, in this case Switzerland.
However, it is important to note that Italy requires border workers to file a tax return, which must be filed by April 30 of the following year. In case of omitted or delayed payment, a penalty equal to 10% of the taxable income shall be applied.
A concrete example can help clarify the situation. Let's imagine a border pharmacist who works in Ticino and earns a gross income of €80,000 per year. The income consists of a salary of €60,000 and a bonus of €20,000. According to the bilateral agreement, income is taxed in Switzerland (for new cross-border workers also in Italy, with a tax credit).
Taxation in Switzerland is as follows:
- Taxable amount: €80,000
- Tax rate: 10%
- Taxes: €8,000
In Italy, the border pharmacist must submit a tax return, which must be submitted by 30 April of the following year. In case of omitted or delayed payment, a penalty of 10% will be applied
Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.
Frequently Asked Questions
- How much does a border pharmacist earn in Ticino?
- The remuneration of a border pharmacist in Ticino depends on several factors, such as his experience and specialization.
- 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.
- Are they exempt from tax at source in Italy?
- Yes, frontier workers are exempt from tax at source in Italy.