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

Context

In a nutshell

• The New Frontier Agreement introduced a deductible of €10,000 for new frontier workers. • Old frontier workers are exempt from detention for €7,500 until 2033. • The Italy-Switzerland Double Taxation Convention was signed on 9 December 1976. • Switzerland is not a member of the EU/EEA.

Who is a border podiatrist in Ticino?

A border podiatrist in Ticino is a professional who works in Switzerland, but resides in Italy and receives an income from work in Switzerland. For example, a podiatrist from Bellinzona could work in a clinic in Lugano and receive an income from work in Switzerland.

How does the deductible for new frontier workers work?

The €10,000 deductible is a measure introduced by the New Frontier Agreement for new frontier workers. This means that for new frontier workers, the first €10,000 of working income in Switzerland is not subject to withholding tax. For example, if a border podiatrist from Lugano earns €50,000 in Switzerland, the first €10,000 is not subject to withholding, while the rest of the income is subject to withholding.

How does the old frontier exemption work?

Old frontier workers are exempt from withholding for €7,500 until 2033. This means that for old frontier workers, the first €7,500 of working income in Switzerland is not subject to withholding tax. For example, if a border podiatrist from Bellinzona earns €40,000 in Switzerland, the first €7,500 is not

Operational details

Key facts

• Salary band : The income of a border podiatrist in Ticino can vary from CHF 60,000 to CHF100,000 per year, depending on the deductible and withholding. • Differences with respect to Italy: the income of a border podiatrist in Ticino is affected by double taxation, while in Italy it is avoided with the tax credit (EC framework of 730). • Factors affecting remuneration: deductible, withholding, double taxation and the Italy-Switzerland Double Taxation Agreement.

Concrete examples

Suppose a border podiatrist works in Lugano, in a private clinic, with a deductible of CHF 40,000 and a withholding tax of 20%. The annual gross income would be CHF 80'000 (CHF 100'000 - CHF 20'000 withholding tax). After deducting the deductible, the net income would be CHF 40'000 (CHF 80'000 - CHF 40'000 deductible). However, since the border podiatrist is subject to double taxation, the actual net income would be CHF 20,000 (CHF40,000 - CHF 20,000 tax).

Regulations and rates

The Italy-Switzerland Double Taxation Convention establishes that the taxation of the income of border workers is carried out on the basis of the principle of the place of residence. This means that the income of a border podiatrist in Ticino is subject to Italian taxation, but only up to a maximum of 50% of gross income. The applicable tax rate depends on the annual gross income, as follows:

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Key points

Action

• What to do: Consult an attorney or tax advisor to understand the implications of double taxation and deductible. It's important to evaluate your tax options and make sure you're compliant with current regulations. In Ticino, for example, double taxation can be avoided by submitting the tax return and the EC framework of 730.

• Where to go: contact the Revenue Agency or ISTAT for information on withholding and double taxation. These institutions can provide you with detailed information on the procedure to be followed and the requirements necessary to avoid double taxation.

• Required documents: Submit the tax return and the EC framework of 730 to avoid double taxation. It is important to take due dates and tax deadlines into account to avoid penalties and interest.

Concrete example

Let's imagine that we are a border podiatrist working in Lugano, Ticino. Your annual income is around 80,000 Swiss francs. If you don't take advantage of the deductible, double taxation could result in a loss of around 20,000 Swiss francs per year.

To avoid double taxation, you can file your tax return and the 730 CE framework. This will allow you to deduct business expenses and reduce your taxable income.

Operational Checklists

• Consult a lawyer or tax advisor for

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