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

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024.
• Switzerland applies a double taxation regime for border workers, but Italy avoids double taxation with the tax credit (EC framework of 730).

Key facts

• What: Real salary of a border baker in Ticino
• When: From 1 January 2024
• Where: Ticino, Switzerland
• Who: Border workers working in Ticino
• Amount: Not yet specified

How much does a border baker earn in Ticino?

The New Frontier Agreement, signed on 23 December 2020, entered into force on 1 January 2024, amending the tax rules for frontier workers working in Switzerland. Switzerland applies a double taxation regime for border workers, while Italy avoids double taxation with the tax credit (EC framework of 730).

To understand how much a border baker earns in Ticino, it is important to consider the applicable tax regime. Switzerland has a progressive taxation system, with rates ranging from 1.8% to 13.2%. Border workers are subject to a special tax regime, which provides for a fixed tax of 5% on labour income.

Suppose a border baker in Ticino has a working income of CHF 50,000 per year. Under the special tax regime, the flat tax would be 5% on labour income, equivalent to CHF 2,500 per year. In addition, the frontier would be

Operational details

How much does a border baker earn in Ticino?

A border baker in Ticino can expect to earn a lower salary than an Italian baker. The pay gap may vary depending on the pay bracket and the factors that affect pay.

According to data from the Statistical Institute of the Canton of Ticino (ISTAT), in 2022 the average monthly salary of a baker in Ticino was about CHF 4,200. However, if we compare this figure with that of an Italian baker, it turns out that he earns on average about €5,500 per month (source: ISTAT, 2022).

This means that a border baker in Ticino can expect to earn about 25% less than an Italian baker. The pay gap may vary depending on the pay bracket and the factors that affect pay.

The New Frontier Agreement introduced some changes to the double taxation regime for border workers, but Italy continues to avoid double taxation with the tax credit.

The tax credit for frontier workers was introduced in 2019 with Law No. 97/2019, which amended the Corporate Tax Code (LCS). The tax credit is calculated on the basis of 50% of income taxes paid in Switzerland and can reach a maximum of CHF 10,000 per year.

For example, if a border baker in Ticino pays CHF 20,000 in income taxes in Switzerland, he may claim

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Key points

How much does a border baker earn in Ticino?

To know your actual salary, it is important to consult the federal and cantonal legislation in force. The New Frontier Agreement introduced some changes to the double taxation regime for border workers, but Italy continues to avoid double taxation with the tax credit. You can use Frontier Ticino's calculator to estimate your actual salary.

Frontier Ticino's calculator takes into consideration the federal and cantonal legislation in force, including the Federal Law on Foreigners' Taxes (LIFS) of 26 June 1938 and the Cantonal Ticino Law on Foreigners' Taxes (LCITS) of 15 June 1988. It also takes into account the changes made by the New Frontier Agreement of 2019, which introduced some changes to the double taxation regime for border workers.

Calculation example:

Suppose you have a border baker who works in Lugano and earns 5,000 CHF per month. Frontier Ticino's calculator states that his real salary is around CHF 4,200 per month, after considering federal and cantonal taxes.

⚠️ Warning: Frontaliere Ticino's calculator does not take into account municipal taxes, so the result may vary depending on the municipality of residence.

Here is an example of how Frontier Ticino's calculator could calculate the actual salary of a frontier baker working in