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

Context

In a nutshell

Switzerland applies withholding tax for frontier workers, while Italy avoids double taxation with the tax credit (EC framework of 730). The New Frontier Agreement, signed on 23 December 2020, enters into force on 1 January 2024 and introduces a transitional regime for old frontier workers.

Key facts

• New Frontier Agreement: signed on 23/12/2020, in force since 1 January 2024 (IT ratification: Law 83 of 13/6/2023). Old frontier workers: exemption €7,500, transitional regime 2024–2033. New frontier workers: deductible €10,000. Italy-Switzerland double taxation agreement: signed on 9 December 1976. Swiss rates/contributions: AVS/AI/IPG 5.3% employee, AD/AC 1.1% (cap CHF 148'200), LAINF 0.7–1.5%, LPP 7–18% by age group (from 25 years). Italian income tax: 23% up to €28,000, 35% €28,001-50,000, 43% over €50,000.

LEAD

The remuneration of a border bricklayer in Ticino is influenced by tax rules and international treaties. Switzerland applies withholding tax for frontier workers, while Italy avoids double taxation with the tax credit (EC framework of 730). The New Frontier Agreement, signed on 23 December 2020, enters into force on 1 January 2024 and introduces a transitional regime for old frontier workers.

PROCEDURES

To know the salary of a border bricklayer in Ticino, it is necessary to consider the Swiss rates/contributions and

Operational details

Practical Implications

The remuneration of a border bricklayer in Ticino is influenced by tax rules and international treaties. According to the Convention between Switzerland and Italy to avoid double taxation related to labour and capital income (in force since 1 January 1964), frontier workers can benefit from favourable tax treatment.

PROCEDURES

To know the salary of a border bricklayer in Ticino, it is necessary to consider the Swiss rates/contributions and the Italian IRPEF. According to the Swiss Federal Law of 28 September 1956, frontier workers are subject to the solidarity contribution (COSU) of 5.5% on annual income, with a maximum limit of CHF 11,115. Italian IRPEF, on the other hand, varies depending on the income and age of the worker. For example, in 2022, 15% of IRPEF applied to an annual income of € 9'331 to € 29'812, while 20% applied to an annual income of € 29'813 to € 49'900.

SCENARIOS

A border worker in a similar situation could opt for the tax credit to avoid double taxation. However, it is important to consider the Swiss rates/contributions and the Italian IRPEF to determine the actual remuneration. For example, if a border bricklayer earns CHF 60,000 per year and opts for the tax credit, his taxable income could be reduced by CHF10,000, thanks to the bilateral treaty. In this case, the contribution of

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Action

To know the salary of a border bricklayer in Ticino, it is necessary to consult the Swiss rates/contributions and the Italian IRPEF.

What is a frontier? A frontier worker is a worker who lives in a neighbouring country and works in the neighbouring country. In this case, the border bricklayer lives in Italy and works in Ticino, Switzerland.

How much does a border bricklayer earn in Ticino? The remuneration of a border bricklayer in Ticino depends on the Swiss rates/contributions and the Italian IRPEF. According to the regulations in force, the border bricklayer in Ticino can opt for the tax credit to avoid double taxation.

Concrete example

Suppose the border bricklayer in Ticino has a gross income of CHF 5,000 per month. According to the Swiss rates/contributions in force, the border bricklayer in Ticino must pay a solidarity contribution of 6% on his gross income. In this case, the solidarity contribution would be CHF 300 per month.

In addition, according to the Italian IRPEF, the border bricklayer in Ticino must pay a tax of 20% on his gross income. In this case, the tax would be CHF 1,000 per month.

However, the border bricklayer in Ticino can opt for the tax credit to avoid double taxation. The tax credit would be CHF 300 per month, equal to the Swiss solidarity contribution.

How to calculate the salary of a border bricklayer in Ticino?

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