Transfer to Brusimpiano from frontier: pro and con (cross-border guide)

Context

In short

• The New Cross-Border Agreement was signed on 23 December 2020 and is in force from 1 January 2024.
• The Italy-Switzerland double taxation agreement was signed on 9 December 1976.
• The New Cross-border Workers Agreement has introduced some important innovations for cross-border workers, including the €10,000 exemption and the rule of withholding tax at source only in Switzerland.

Key facts

• What: New Cross-Border Agreement
• When: December 23, 2020
• Where: Switzerland
• Who: Cross-border workers
• Amount: €10'000

Moving to Brusimpiano as a cross-border commuter: pros and cons

If you are a cross-border worker who works in Switzerland and lives in Italy, you may be interested in moving to Brusimpiano, a municipality in the Canton of Ticino. However, it is important to consider the pros and cons of this move.

Pro

• Excess: With the New Cross-Border Agreement, you are entitled to an allowance of €10,000 for your income. This means that you will not be subject to tax in Switzerland if your income does not exceed this amount.
• Tax withholding: The tax withholding rule only applies in Switzerland, meaning you won't have to worry about taxation in Italy.
• Ease of working: Brusimpiano is a municipality with a strong presence of companies and businesses, so you may easily find work in your area of ​​expertise.
• Quality of life: The Canton of Ticino offers an excellent quality of life, with a mild climate and unique natural beauty.

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Operational details

Withholding tax is withheld only in Switzerland, according to the New Cross-Border Agreement. This means that cross-border workers will no longer have to pay the tax in Italy. However, it is important to note that the Italy-Switzerland double taxation agreement is still in force and can influence the tax situation of cross-border workers.

For cross-border workers who work in Italy and reside in Switzerland, moving to Brusimpiano can be an interesting choice. Brusimpiano is a municipality in the district of Lugano, Switzerland, which offers a high quality of life and a strategic position for working in Italy.

However, it is important to consider the pros and cons of this move. Here are some of the main considerations:

Pros of the move to Brusimpiano

• Tax at Source: as already mentioned, Tax at Source is withheld only in Switzerland, which means that cross-border workers will no longer have to pay the tax in Italy.
• Quality of life: Brusimpiano offers a high quality of life, with a strategic position and an enchanting natural environment.
• Strategic location: Brusimpiano is located a few kilometers from Lugano and other major cities in southern Switzerland, making it easy to work in Italy and enjoy the benefits of life in Switzerland.

Cons of the transfer to Brusimpiano

• Double taxation agreement: the Italy-Switzerland double taxation agreement is still in force and can influence the tax situation of cross-border workers.
• Impact on the tax situation: moving to Brusimpiano may have an impact on the tax situation of cross-border commuters, in particular if you have tax obligations in Italy.
• Transfer costs: Moving to Brusimpiano may require relocation costs, such as purchasing a new home or enrolling in local public services.

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Key points

Before moving to Brusimpiano, it is important to consider the tax situation and the implications of the New Cross-border Agreement. It is advisable to consult a tax advisor or a lawyer specializing in border law to receive accurate and personalized information.

The Ticino cross-border worker salary calculator can help you understand how the new cross-border worker agreement will affect the tax situation and net income of cross-border workers. For example, if a cross-border worker with an income of 80'000 CHF per year moves his residence to Brusimpiano, the calculator could indicate that the New Cross-border Worker Agreement would reduce his net income by approximately 10'000 CHF per year, due to the reduction in the income tax rate.

The New Cross-border Workers Agreement came into force on 1 January 2022 and changed the tax rules for cross-border workers. According to the treaty, cross-border commuters can choose to be taxed in Switzerland or Italy. If they choose to be taxed in Switzerland, they must file their tax return in Switzerland and pay taxes in Switzerland. If they choose to be taxed in Italy, they must file their tax return in Italy and pay taxes in Italy.

It is important to note that the choice to be taxed in Switzerland or Italy can have significant impacts on the tax situation and net income of cross-border commuters. For example, if a cross-border worker chooses to be taxed in Switzerland, he or she may benefit from lower income taxation, but may have to pay tax in Switzerland on income from work in Italy.

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