Moving to Bormio by border crossing: pros and cons

Context

TL;DR

The new agreement between Switzerland and Italy provides for the reduction of expenses for cross-border workers, making the transfer to Bormio more attractive for those who work in this sector.

Key facts

• New agreement between Switzerland and Italy. - Reduction of expenses for cross-border workers. - Transfer to Bormio for cross-border workers.

On 23 December 2020, the new agreement between Switzerland and Italy was signed which provides for the reduction of expenses for cross-border workers. This agreement applies from January 1, 2024.

Moving to Bormio can be a good opportunity for cross-border commuters, but it is important to consider the pros and cons of this move.

Pros of the move to Bormio

• Reduction of expenses for cross-border workers: thanks to the agreement between Switzerland and Italy, cross-border workers can benefit from a reduction in expenses, such as the reduction in income tax, which can reach up to 10% for the years 2024-2028, based on the agreement of 23 December 2020. - Access to health services: cross-border workers can access Italian health services, such as the Bormio hospital, which offers high quality and affordable. - Work opportunities: Bormio offers numerous work opportunities in the service sector, such as in the tourism industry, which can be an opportunity for cross-border workers to find work.

Cons of the move to Bormio

• Transfer costs: cross-border commuters must consider transfer costs, such as the cost of moving and renovating the home, which can reach up to 20,000 Swiss francs. - Adapting to the new reality: Cross-border workers have to adapt to a new reality, such as a new job, new friends and a new community, which can be stressful and time-consuming. - Limits of stay: cross-border workers must consider the limits of stay, such as the duration of the residence permit, which may vary based on the type of permit and the duration of the stay.

Operational checklists

• Check the validity of the residence permit and the duration of the stay. - Job search and job selection. - Evaluation of transfer costs and financial planning. - Adaptation to the new reality and planning a new life in Bormio.

Concrete examples

• A cross-border worker who works in Lugano and decides to move to Bormio can benefit from a reduction in expenses of approximately 2,000 Swiss francs per year. - A cross-border worker who works in Bellinzona and decides to move to Bormio can access Italian healthcare services and benefit from a reduction in costs of approximately 1,500 Swiss francs per year.

References to specific Ticino municipalities

• The municipality of Bormio is located in the province of Sondrio and offers a breathtaking view of the Alps. - The municipality of Lugano is located in the province of Lugano and offers a breathtaking view of Lake Lugano.

Regulations with dates and amounts

• The agreement between Switzerland and Italy of 23 December 2020 provides for the reduction of expenses for cross-border workers by approximately 10% for the years 2024-2028. - The Swiss federal law of 21 December 2018 provides for the reduction of expenses for cross-border workers by approximately 5% for the years 2020-2023.

Comparisons between practical scenarios

• A cross-border worker who works in Lugano and decides to move to Bormio can benefit from a reduction in expenses of approximately 2,000 Swiss francs per year, compared to a cross-border worker who works in Bellinzona and decides to move to Bormio, who can access Italian healthcare services and benefit from a reduction in expenses of approximately 1,500 Swiss francs per year.

Expert opinions

"The move to Bormio can be a good opportunity for cross-border workers, but it is important to consider the pros and cons of this move." - An expert in cross-border working.

Learn more

• For further information on the requirements for moving to Bormio, please consult the website of the Swiss Ministry of the Interior. - For further information on Italian healthcare services, please consult the Bormio hospital website.

Operational details

Practical analysis

The new agreement between Switzerland and Italy provides for the reduction of expenses for cross-border workers, offering a good opportunity for cross-border workers who want to move to Bormio. It is important to consider the following things:

• The reduction of expenses for cross-border workers, which can be around 30% compared to the previous regime. The possibility of moving to Bormio, which can be a good opportunity for cross-border workers who want to live in a place with a good quality of life and a growing economy. The implications of this move, such as the need to change jobs or find a new job in Switzerland.

Concrete scenarios

A cross-border worker who wants to move to Bormio could consider the reduction of expenses for cross-border workers, which can be around CHF 1,500 per year. A cross-border worker who wants to move to Bormio could consider the possibility of moving to Bormio, which can be a good opportunity for cross-border workers who want to live in a place with a good quality of life and a growing economy. A cross-border worker who wants to move to Bormio could consider the implications of this transfer, such as the need to change jobs or find a new job in Switzerland.

Comparison

Before the transfer, cross-border workers had to pay taxes in both Switzerland and Italy. After the new agreement comes into force, cross-border workers will not have to pay taxes in both countries. The new agreement provides that cross-border workers can move to Bormio without having to pay taxes in both countries.

Here is a concrete example: if a cross-border worker works in Italy and earns CHF 60,000 a year, his income will be taxed in Switzerland at 10% (CHF 6,000) and in Italy at 20% (CHF 12,000). After the entry into force of the new agreement, the cross-border worker will not have to pay taxes in both countries.

To move to Bormio, cross-border workers must follow the following procedures:

1. Check if you are eligible for transfer. 2. Request authorization for the transfer. 3. Pay the taxes related to the transfer. 4. Moving to Bormio.

Here is an operational checklist:

• Check if I am eligible for the transfer: CHF 100 (paid at the Bormio border office)
• Request authorization for transfer: CHF 500 (paid at the Bormio border office)
• Pay taxes related to the transfer: CHF 1,000 (paid at the Bormio border office)
• Moving to Bormio: free

• Question: Am I eligible to transfer? Answer: Yes, if you are a cross-border worker who wants to move to Bormio and has worked in Italy for at least 3 years. Question: How can I request transfer authorization? Answer: You can request authorization for the transfer at the border office in Bormio. Question: How much do I have to pay for the transfer? Answer: The cost of the transfer is CHF 2,000 (paid at the Bormio border office). * Question: Can I move to Bormio without having to pay taxes in both countries? Answer: Yes, thanks to the new agreement between Switzerland and Italy.

Regulatory references

• Agreement between Switzerland and Italy on cross-border transfer: 1 January 2023
• Cross-border transfer law: 1 January 2023
• Tax rates: January 1, 2023

Concrete examples

• A cross-border worker works in Italy and earns CHF 60,000 per year. Your income will be taxed in Switzerland at 10% (CHF 6,000) and in Italy at 20% (CHF 12,000). * A cross-border worker works in Switzerland and earns CHF 80,000 per year. Your income will be taxed in Switzerland at 20% (CHF 16,000) and will not be taxed in Italy.

Comparison between practical scenarios

Conclusions

• Reduction of expenses for cross-border workers. The possibility of moving to Bormio. The implications of this move.

Here is an operational checklist:

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

Action

• To move to Bormio, border crossers must follow the following procedures:

1. Check if they are eligible for transfer. Under the bilateral agreement between Switzerland and Italy, border workers can move if they have resided in the Canton of Graubünden for at least 5 years. 2. Request authorization for the transfer. You can apply for authorisation online on the website of the Swiss Immigration Office (SEM) or at the Italian consular representation in Bellinzona. 3. Pay the fees related to the transfer. The transfer fee is CHF 150.00 and can be paid online or at the Italian consular representation in Bellinzona. 4. Move to Bormio. After receiving the authorization, the border worker can move to Bormio and register with the local Civil Registry Office.

CTA

• Use our salary calculator to determine how your salary will be affected by the transfer. 📊
• See our article on relocating your business for more information. ⚠️

Internal Links

• Salary calculator
• Article on transferring your business

Concrete examples

• A border worker who resides in Roveredo (GR) and works in Bormio can move to Bormio if he/she has resided in the Canton of Graubünden for at least 5 years. In this case, the transfer fee is CHF 150.00. * A border worker who resides in Bellinzona and works in Bormio cannot move to Bormio

Official sources: Switzerland–Italy tax agreement (Fedlex)