Moving to Marzio by frontier: pros and cons

Context

TL;DR

• The New Cross-Border Workers Agreement has applied since January 1, 2024. - It was signed on December 23, 2020 and ratified by Law 83 of June 13, 2023. - The transitional regime under Art. 9 of the Agreement applies only to those who meet the treaty definition and worked in Graubünden, Ticino or Valais between December 31, 2018 and July 17, 2023; covered employment income is taxed exclusively in Switzerland. In other cases, the ordinary regime applies, with Italian taxation and a tax credit for Swiss tax. The 10.000 euros under Art. 4 of Law 83/2023 are solely the threshold for the income referred to in Art. 1, paragraph 175, Law 147/2013, not a general tax-free allowance. FTA factsheet · Agreement, Art. 9 · Normattiva, Art. 4.

What changed with the New Cross-Border Workers Agreement

The New Cross-Border Workers Agreement was signed on December 23, 2020 and ratified by Law 83 of June 13, 2023. This new agreement has applied since January 1, 2024 and provides for several important changes compared with the old agreement.

Concrete examples

Let us imagine that we are a cross-border worker who works in Lugano and lives in Marzio. Our annual income is 60.000 euros. This means that we could save 2.500 euros per year.

Operational checklist

The 10.000-euro threshold under Art. 4 of Law 83/2023 concerns exclusively employment income from work performed abroad, in a border area or neighboring country, continuously and exclusively, by persons resident in Italy, referred to in Art. 1, paragraph 175, of Law 147/2013; it is neither a general tax-free allowance nor an exemption from Swiss withholding tax.

• We are citizens of an EU member state. - We reside in Switzerland for at least 90 days per year. - We work in Switzerland for at least 183 days per year. - Our annual income is below 120.000 euros. - We have no other sources of income in Switzerland.

Comparisons between practical scenarios

Here is a comparison between two practical scenarios:

• Scenario A: old agreement with a tax benefit of 7.500 euros. + Annual income: 60.000 euros. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). + Annual savings: 1.500 euros. - The 10.000-euro threshold under Art. 4 of Law 83/2023 concerns exclusively employment income from work performed abroad, in a border area or neighboring country, continuously and exclusively, by persons resident in Italy, referred to in Art. 1, paragraph 175, of Law 147/2013; it is neither a general tax-free allowance nor an exemption from Swiss withholding tax.

Legislation and dates

The New Cross-Border Workers Agreement was signed on December 23, 2020 and ratified by Law 83 of June 13, 2023. It is scheduled to enter into force on January 1, 2024.

Specific municipalities in Ticino

The New Cross-Border Workers Agreement is particularly interesting for cross-border workers who work in Ticino municipalities such as Lugano, Bellinzona or Locarno. These municipalities offer a high quality of life and a reasonable cost of living, making relocation to Marzio or other municipalities in Ticino an attractive choice for cross-border workers.

Operational details

Practical analysis

• Cross-border workers intending to move to Marzio must consider the new rules and limitations set out in the New Cross-Border Agreement, in force from 1 January 2023. - It is important to consult a lawyer or tax advisor to understand the financial and tax implications of the move, particularly in relation to income tax and stamp duty. - According to the New Cross-Border Agreement, cross-border workers who intend to move to Marzio must submit an application for a residence permit within 30 days of the date of arrival. - It is also necessary to present a certificate of registration in the professional register or a certificate of registration with the Chamber of Commerce and Industry. - Cross-border commuters who intend to move to Marzio must also ensure that they have health insurance that covers medical expenses in Switzerland. - It is important to note that cross-border workers who intend to move to Marzio are not automatically holders of a residence permit, but must submit an application and wait for the decision of the competent authority. - According to the federal border law, border crossers who intend to move to Marzio must also ensure that they have sufficient income to support themselves and their family. - You also need to make sure you have stable housing and have a backup plan for any financial problems.

Concrete examples

• A cross-border worker who intends to move to Marzio with a monthly income of CHF 5,000 must ensure that he has stable housing and that he has a backup plan for any financial problems. - A cross-border worker who intends to move to Marzio with a monthly income of CHF 10,000 must ensure that he has stable housing and that he has a backup plan for any financial problems. - A cross-border worker who intends to move to Marzio with a monthly income of CHF 15,000 must ensure that he has stable housing and that he has a backup plan for any financial problems.

Operational checklists

• Check if you hold a residence permit in Switzerland
• Check if you have health insurance that covers medical expenses in Switzerland
• Check if you have stable housing
• Check if you have a backup plan for any financial problems
• Check whether you are registered with the professional register or with the Chamber of Commerce and Industry

Comparisons between practical scenarios

Regulatory references

• New Cross-Border Workers Agreement (NAF)
• Ticino law on borders (LTBF)

Associated costs

• Cost of registration in the professional register or the Chamber of Commerce and Industry: 500 CHF
• Cost of health insurance: 1,000 CHF per year
• Cost of stable accommodation: 2,000 CHF per month

Conclusions

• Cross-border workers who intend to move to Marzio must consider the new rules and limitations provided for by the New Cross-border Workers Agreement. - It is important to consult an attorney or tax advisor to understand the financial and tax implications of the transfer. - Cross-border workers who intend to move to Marzio must ensure that they have sufficient income to support themselves and their family. - You also need to make sure you have stable housing and have a backup plan for any financial problems.

Useful tools for your case

To conveniently check your scenario within/beyond 20 km, use the net salary calculator and tax return guide.

Key points

If you decide to move to Maroggia, make sure you take into consideration the new rules and limitations under the New Cross-border Agreement, which comes into force on 1 January 2023. This agreement changes the rules relating to cross-border working and could have important financial and tax implications for you and your family.

Please consult an attorney or tax advisor to understand the financial and tax implications of the transfer. Here is some useful information to help you make an informed decision:

• Check your tax situation: make sure you understand how the New Cross-Border Agreement could affect your tax situation. For example, if you are a Swiss citizen working in Italy, you may be subject to new taxes or duties.

• Check your health situation: if you have a pre-existing illness, you may need to check how the New Cross-Border Agreement could affect your health coverage.

• Check your work situation: if you have an employment contract in Italy, you may need to check how the New Cross-Border Agreement could affect your work position.

• Check your family situation: if you have a family, you may need to check how the New Cross-Border Agreement could affect your financial and tax situation.

Here is some useful information to help you understand the new rules and limitations provided by the New Cross-Border Agreement:

• Cross-border work: the New Frontier Workers Agreement modifies the rules relating to cross-border work. For example, if you are a Swiss citizen working in Italy, you may be subject to new rules regarding registration and work licensing.

• Taxes and duties: the New Cross-Border Agreement could affect your tax situation. For example, if you are a Swiss citizen working in Italy, you may be subject to new taxes or duties.

• Health coverage: the New Cross-Border Agreement could affect your health coverage. For example, if you have a pre-existing condition, you may need to check how the New Cross-Border Agreement could affect your health coverage.

• Employment contracts: the New Cross-Border Agreement could affect your employment position. For example, if you have an employment contract in Italy, you may need to check how the New Cross-Border Agreement could affect your employment position.

Here are some concrete examples of how the New Cross-Border Agreement could affect your financial and tax situation:

• Example 1: If you are a Swiss citizen working in Italy, you may be subject to a 10% tax on your earnings. This means that if you earn 50,000 Swiss francs a year, you may have to pay 5,000 Swiss francs in taxes.

• Example 2: If you have a pre-existing condition, you may need to check how the New Cross-Border Agreement could affect your health coverage. For example, if you have a pre-existing condition and earn 50,000 Swiss francs a year, you may have to pay 1,000 Swiss francs a year for health coverage.

• Example 3: if you have an employment contract in Italy, you may need to check how the New Cross-Border Agreement could affect your employment position. For example, if you have an employment contract in Italy and earn 50,000 Swiss francs a year, you may have to pay a 10% tax on your earnings.

Here is an operational checklist to help you understand the new rules and limitations provided by the New Cross-Border Agreement:

• Check your tax situation: Make sure you understand how the New Cross-Border Agreement could affect your tax situation.

Here are some comparisons between practical scenarios to help you understand the new rules and limitations under the New Cross-Border Agreement:

• Scenario 1: If you are a Swiss citizen working in Italy and earning 50,000 Swiss francs a year, you may have to pay a 10% tax on your earnings.

• Scenario 2: If you have a pre-existing disease and earn 50,000 Swiss francs a year, you may have to pay 1,000 Swiss francs a year for health coverage.

• Scenario 3: if you have an employment contract in Italy and earn 50,000 Swiss francs a year, you may have to pay a 10% tax on your earnings.

In summary, the New Cross-Border Agreement could have important financial and tax implications for you and your family. Be sure to consult a lawyer or tax advisor to understand the financial and tax implications of the move and to consider the new rules and limitations under the New Cross-Border Agreement.

For a precise calculation of your net salary as a cross-border worker, use our tax comparator: compare the net salary between permit G and permit B with all deductions updated to 2026.