Moving to Cadegliano-Viconago by border crossing: pros and cons (cross-border guide)

Context

In a nutshell

Switzerland signed the New Frontier Agreement on 23 December 2020, effective from 1 January 2024. The New Agreement provides for an exemption of €7,500 for old border guards and €10,000 for new border guards. The Italy-Switzerland Double Taxation Convention is dated 9 December 1976.

Key facts

• What: Transfer to Cadegliano-Viconago from border crossers
• When: 1 January 2024
• Where: Cadegliano-Viconago
• Who: Frontiersmen
• Amount: €7,500
• Amount: €10,000

Source Setting

Switzerland signed the New Frontier Agreement on 23 December 2020, effective from 1 January 2024. The New Agreement provides for an exemption of €7,500 for old border guards and €10,000 for new border guards.

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

The transfer to Cadegliano-Viconago by border worker can be an interesting choice for those who wish to work and live in a municipality of the Canton of Ticino. The New Frontier Agreement, signed on 23 December 2020, provides for an exemption of €7,500 for old frontier workers and €10,000 for new frontier workers. However, it is important to consider the pros and cons of this transfer.

• Tax exemption: frontier workers can benefit from the tax exemption provided by the New Frontier Agreement, which can reduce their tax exposure. - Work: the municipality of Cadegliano-Viconago offers several job opportunities, both in the public

Operational details

Let's analyse the practical implications for frontier workers: the New Frontier Agreement entails the exemption of €7,500 for old frontier workers and €10,000 for new frontier workers. 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. those who have already had access to the Swiss labour market before the entry into force of the New Frontier Agreement, will be able to benefit from an additional tax exemption of €7,500. 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 new frontier workers

New border crossers, on the other hand, will be able to benefit from an additional tax exemption of €10,000. 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