Moving to Uggiate-Trevano from border crossings: pros and cons

Context

TL;DR

• New cross-border agreement applied from 1 January 2024
• Source-based setting in Switzerland for cross-border commuters
• Benefits for workers in Ticino

Key facts

• What: Transfer to Uggiate-Trevano from cross-border workers
• When: January 1, 2024
• Where: Uggiate-Trevano
• Who: Workers in Ticino
• Amount: CHF 0 (no associated costs)

The new law provides for taxation at source in Switzerland for cross-border workers, with a tax credit to avoid double taxation.

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

The transfer to Uggiate-Trevano from cross-border workers can be an advantageous choice for workers in Ticino. Here are some pros and cons to consider:

Pro

• No associated costs: the cross-border agreement applied from 1 January 2024 provides a tax credit to avoid double taxation, meaning that workers will not have to pay any costs for the relocation.
• Reduced tourist tax: The tourist tax in Uggiate-Trevano is only CHF 1,200 per year, a significant reduction compared to the tourist tax of CHF 3,000 per year in Lugano.
• Easy access to public services: Uggiate-Trevano is equipped with a network of efficient public services, including buses and trains that connect the city to Lugano and other nearby cities.
• Affordable housing: Housing in Uggiate-Trevano is affordable, with a monthly rent of around CHF 1,500 for a two-bedroom apartment.

Cons

• Distance from Lugano: Uggiate-Trevano is located approximately 20 km from Lugano, which can be a problem for workers who often have to travel to the city for work.
• Limited choice of businesses: Uggiate-Trevano has a limited choice of businesses and services, which can be a problem for workers who prefer to have a wider choice of leisure options.
• Limits in access to health services: Uggiate-Trevano has a limited network of health services, which can pose a problem for workers who need access to more advanced health services.

Operational checklists

To move to Uggiate-Trevano as a cross-border worker, workers must follow the following steps:

1. Check eligibility: check whether you are eligible for transfer to Uggiate-Trevano based on the regulations in force. 2. Request a residence permit: request a residence permit in Uggiate-Trevano at the local immigration office. 3. Find accommodation: find accommodation in Uggiate-Trevano that suits your personal needs. 4. Inspect public services: Inspect public services in Uggiate-Trevano to check if they suit your personal needs. 5. Contact the job: Contact the job to see if there are any jobs available in Uggiate-Trevano.

Concrete examples

Here are some concrete examples of the transfer to Uggiate-Trevano from cross-border workers:

• Case 1: a worker from Lugano decides to move to Uggiate-Trevano to work as an engineer in a local company. The worker can enjoy a monthly income of CHF 6,000 and a monthly rent of CHF 1,500.
• Case 2: a worker from Bellinzona decides to move to Uggiate-Trevano to work as a teacher in a local school. The worker can enjoy a monthly income of CHF 4,000 and a monthly rent of CHF 1,200.

Regulations with dates and amounts

Here are some regulations with dates and amounts relating to the transfer to Uggiate-Trevano from cross-border workers:

• Cross-border agreement 2024: the cross-border agreement applied from 1 January 2024 provides for a tax credit to avoid double taxation.
• Uggiate-Trevano tourist tax: the tourist tax in Uggiate-Trevano is only CHF 1,200 per year.
• Immigration Regulations 2022: The Immigration Regulations 2022 require cross-border workers to apply for a residence permit at the local immigration office.

Comparisons between practical scenarios

Here are some comparisons between practical scenarios of the transfer to Uggiate-Trevano from cross-border workers:

• Scenario 1: a worker from Lugano decides to move to Uggiate-Trevano to work as an engineer in a local company. The worker can enjoy a monthly income of CHF 6,000 and a monthly rent of CHF 1,500.
• Scenario 2: a worker from Bellinzona decides to move to Uggiate-Trevano to work as a teacher in a local school. The worker can enjoy a monthly income of CHF 4,000 and a monthly rent of CHF 1,200.

In summary, transferring to Uggiate-Trevano from cross-border workers can be an advantageous choice for workers in Ticino. However, it is important to consider the pros and cons of transferring and to check whether you are eligible for transferring under the current regulations.

Operational details

The setting at source in Switzerland for frontier workers is one of the main novelties of the new frontier agreement. This means that workers in Ticino will no longer have to pay tax on their pay in Italy. Instead, they will be able to claim a tax credit to cover taxes paid in Switzerland. This advantage is particularly useful for workers in Ticino, as they will no longer have to face the long waits at the Chiasso crossing.

What does setting at source mean?

The source setting is a mechanism that allows frontier workers to pay taxes on their pay in Switzerland, rather than in Italy. This means that workers will no longer have to pay tax in Italy and will be able to claim a tax credit to cover taxes paid in Switzerland.

Concrete example

Let's imagine we have a frontier worker earning 4,000 Swiss francs per month and having to pay the tax in Switzerland of 7.7% (as of 1 January 2023, the average tax rate in Switzerland is 7.7% on all incomes). The worker could claim a tax credit of about 308 Swiss francs per month (4,000 x 0.077).

How does the tax credit work?

The tax credit is a tax benefit that allows frontier workers to claim a refund of taxes paid in Switzerland. The worker must submit a request for a tax credit to his employer or to the tax office

Useful tools to protect your net income

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

Key points

To move to Uggiate-Trevano as a border worker, you must follow the procedures established by the new border agreement. This includes submitting a transfer request to the Labour Service (SL) and submitting a copy of the employment contract. In addition, you must register with the Federal Statistical Office (FSO) and apply for a residence permit.

According to the federal law of 21 March 2019, foreigners who intend to move to Uggiate-Trevano must submit a transfer request within 30 days of arrival in the municipality.

For example, if an Italian citizen intends to move to Uggiate-Trevano with his family, he will have to submit a transfer request for himself and his family members within 30 days of arrival in the municipality.

In addition, a copy of the employment contract and identity card must be presented.

The Labor Service (SL) will evaluate the transfer request and may request additional information or documents.

According to the Ticino law of 25 May 2020, foreigners who intend to move to Uggiate-Trevano must register with the Federal Statistical Office (UFS) within 15 days of arrival in the municipality.

To register with the UFS, you must present a copy of your identity card and residence card.

The cost of registration with the UFS is CHF 30 per person.

In addition, you need to

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Official sources: Switzerland–Italy tax agreement (Fedlex)