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

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020 and enters into force on 1 January 2024.
• The new agreement provides for an exemption of CHF 10,000 for new frontier workers.
• Switzerland and Italy signed the Double Taxation Agreement on 9 December 1976.

Key facts

• What: income of a border doctor in Ticino
• When: from 1 January 2024
• Where: Ticino, Switzerland
• Who: border workers in Ticino
• Amount: CHF 10,000 exemption for new frontier workers

Exchange Rates

• The Euro/Sfr exchange rate is currently 1: 1.08 (date of last verification 01.01.2024).

Income Calculation Example

• Imagine a border doctor who works in Ticino and earns 120'000 Euro per year.
• At the current exchange rate (1 Euro = 1.08 CHF), the annual income in CHF would be 129,600.
• However, thanks to the exemption of CHF 10'000 provided for by the New Frontier Agreement, the frontier doctor could earn CHF 119'600 per year.

Operational Checklists

• Verify the identity and work of the border worker at the Canton of Ticino.
• Check if the frontier worker has already earned the maximum income of CHF 10,000.
• Check if the frontiersman has already applied for the exemption of CHF 10'000 previously.
• Check if the frontier worker has already signed the employment contract with the employer.

Comparison of practical scenarios

• If the border doctor does not earn the maximum income of CHF 10,000, he may be exonerated

Operational details

How much does a border doctor earn in Ticino?

The New Frontier Agreement was signed on 23 December 2020 and enters into force on 1 January 2024. This agreement provides for an exemption of CHF 10,000 for new frontier workers. Switzerland and Italy signed the Double Taxation Convention on 9 December 1976.

The income of a border doctor in Ticino may vary according to their experience and specialization. However, thanks to the New Frontier Agreement, frontier workers in Ticino can benefit from a higher income than in Italy.

For example, a border doctor in Ticino with 5 years of experience and specializing in cardiology can earn between CHF 150'000 and CHF 250'000 per year. This income may vary depending on the workplace and the number of patients treated.

In comparison, an Italian doctor with the same experience and specialization can earn between CHF 80,000 and CHF150,000 per year. This means that a border doctor in Ticino can earn up to CHF 100,000 more than an Italian doctor.

However, it is important to note that the income of a border doctor in Ticino may vary based on their specialization and experience. For example, a border doctor in Ticino specialising in orthopaedics can earn between CHF 120'000 and CHF 220'000 per year, while a doctor specialising in paediatrics can earn between CHF 100'000 and CHF 180'000 per year.

In addition,

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

How much does a border doctor earn in Ticino?

For new frontier workers, the exemption of CHF 10,000 is an important benefit. In addition, the New Frontier Agreement provides for the exemption of CHF 7,500 for old frontier workers. It is important to note that the Double Taxation Convention between Switzerland and Italy was signed on 9 December 1976.

If you are a frontier worker in Ticino, you can benefit from this agreement and have a higher income than in Italy. It is important to consult an attorney or financial expert for more information.

A concrete example is that of a border doctor who works in Lugano and earns CHF 150,000 per year in Italy. Thanks to the exemption of CHF 10,000, his taxable income in Switzerland would be CHF140,000. Considering the tax rate of 7.8% in Switzerland, the border doctor could pay about CHF 11'000 in taxes in Switzerland.

By comparison, if the border doctor had not benefited from the agreement, his taxable income in Switzerland would have been CHF 150'000, with a tax payment of about CHF 11'700.

Other examples of specific municipalities in Ticino where frontier workers can benefit from the agreement include:

• Bellinzona: a frontier worker who works in Bellinzona and earns CHF 120'000 per year in Italy could benefit from the exemption of CHF 10'000 and pay only CHF 9'400 in taxes in Switzerland.
• Locarno: a frontier worker who works in Locarno and earns CHF 180,000 per year in Italy

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.