How much does a border pharmacist earn in Ticino? (cross-border guide)

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 exemption for frontier workers was established in Article 13 of the CMU and amounts to €10,000 for the first 5 years of work in

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 only in Switzerland.

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

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