Moving to Cadegliano-Viconago by border crossing: pros and cons

Context

TL;DR

Switzerland signed the New Border Agreement on 23 December 2020, which has been in effect since 1 January 2024. The transitional regime of Article 9 of the Agreement applies only to those who meet the conventional definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; the covered employment income is taxed exclusively in Switzerland. In other cases, the ordinary regime applies, with Italian taxation and credit for Swiss tax. The 10,000 euros of Article 4 L. 83/2023 are only the limit for income referred to in Article 1, paragraph 175, L. 147/2013, not a general deductible. [AFC Card] (https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf) · [Agreement, Art. 9] (https://www.fedlex.admin.ch/eli/cc/2023/410/it) * Standard, art. 4. The Italy-Switzerland Double Taxation Convention is of 9 March 1976.

Key facts

• What: Moving to Cadegliano-Viconago as a cross-border worker
• When: January 1, 2024
• Where: Cadegliano-Viconago
• Who: Cross-border workers
• Amount: €7'500
• Amount: €10'000

Source setup

Switzerland signed the New Cross-Border Workers Agreement on December 23, 2020, applied from January 1, 2024.

Moving to Cadegliano-Viconago as a cross-border worker: pros and cons

Moving to Cadegliano-Viconago as a cross-border worker can be an interesting choice for those who wish to work and live in a municipality in the Canton of Ticino. However, it is important to consider the pros and cons of this move.

• Tax exemption: cross-border workers may benefit from the tax exemption provided for by the New Cross-Border Workers Agreement, which can reduce their tax exposure. - Work: the municipality of Cadegliano-Viconago offers several job opportunities, both in public administration and in the private sector. - Quality of life: the municipality of Cadegliano-Viconago offers a high quality of life, with a scenic natural environment and an active community.

• Bureaucracy: moving to Cadegliano-Viconago may require considerable bureaucracy, with the need to submit various applications and documents. - Costs: moving to Cadegliano-Viconago can be costly, with the need to pay moving and registration expenses. - Adaptation: moving to a new municipality may require significant adjustment, with the need to learn new habits and interact with a new community.

Operational checklist

To move to Cadegliano-Viconago as a cross-border worker, it is important to consider the following steps:

• Verify eligibility: check whether you are eligible to work in Switzerland and whether you meet the conditions provided for by the New Cross-Border Workers Agreement. - Submit the transfer application: submit the transfer application to the municipality of Cadegliano-Viconago and provide all the necessary documents. - Pay moving and registration expenses: pay the moving and registration expenses for the move to Cadegliano-Viconago. - Learn new habits: learn new habits and interact with the new community of Cadegliano-Viconago.

Comparisons between practical scenarios

• Scenario 1: a cross-border worker with an annual income of €50'000 decides to move to Cadegliano-Viconago. - Scenario 2: a cross-border worker with an annual income of €30'000 decides to move to Bellinzona.

Concrete examples

• Example 1: a cross-border worker with an annual income of €50'000 decides to move to Cadegliano-Viconago. - Example 2: a cross-border worker with an annual income of €30'000 decides to move to Bellinzona.

References to specific Ticino municipalities

• Municipality of Cadegliano-Viconago: the municipality of Cadegliano-Viconago offers a high quality of life and several job opportunities. - Municipality of Bellinzona: the municipality of Bellinzona offers a high quality of life and several job opportunities.

Regulations with dates and amounts

• The transitional regime under Art. 9 of the Agreement applies only to those who meet the conventional definition and worked in the Graubünden, Ticino or Valais between December 31, 2018 and July 17, 2023; the covered employment income is taxed exclusively in Switzerland. In other cases, the ordinary regime applies, with Italian taxation and a credit for Swiss tax. The 10.000 euros under Art. 4 L. 83/2023 are only the limit for the income referred to in Art. 1, paragraph 175, L. 147/2013, not a general exemption. AFC factsheet · Agreement, Art. 9 · Normattiva, Art. 4.

Comparisons between practical scenarios

References to specific Ticino municipalities

Regulations with dates and amounts

Operational checklist

Operational details

The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax. This means that frontier workers will enjoy a more favourable tax treatment than in the past.

Tax exemption for old frontier workers

Old frontier workers, i.e. For example, a border worker of Italian origin who has already worked in Switzerland for 5 years will be able to enjoy this exemption, thus reducing his tax burden.

Tax exemption for The Article 9 transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the income limit referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4. For example, a border worker of Italian origin who is about to start working in Switzerland will be able to enjoy this exemption, thus reducing his tax burden.

Comparison with other Ticino municipalities

The New Frontier Agreement could have a different impact on border crossers moving to other municipalities in Ticino. For example, border workers who move to Bellinzona will benefit from a more favourable tax treatment than those who move to Lugano.

Calculation Example

Suppose that a border worker of Italian origin has an annual income of €50,000 and

Useful tools to protect your net income

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

Key points

If you decide to move to Cadegliano-Viconago, be sure to check your residency conditions and make sure you meet the needs of the New Frontier Agreement. You can consult Frontier Ticino's salary calculator to get an idea of your financial situation.

Available Resources

• Border Ticino salary calculator: a useful tool to understand your financial condition. Swiss Government website: for information on the New Frontier Agreement and residence conditions. Office of the Government of the Canton of Ticino: to consult official documents and receive assistance.

Comparison of scenarios

Imagine moving to Cadegliano-Viconago with an income of CHF 80,000 per year. If you are a frontier worker, you may be subject to an income tax of 15% in Switzerland and 20% in Italy. The Frontier Ticino salary calculator allows you to calculate your taxes and understand how your financial situation could be affected by the transfer.

Here's an example of how your taxes might be calculated:

• Income: CHF 80,000
• Taxes in Switzerland: CHF 12,000 (15% of CHF80,000)
• Taxes in Italy: CHF 16,000 (20% of CHF80,000)
• Total: CHF 28,000

Things to consider

• Residence conditions: Make sure you meet the requirements of the New Frontier Agreement and obtain a residence permit. * Taxes: Understand how your taxes