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

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020.
• The new agreement is in force from 1 January 2024.
• Border crossers who move to Domaso can enjoy a number of advantages.

The New Frontier Agreement was signed on 23 December 2020 and provides a number of benefits for frontier workers moving to Domaso. The new agreement takes effect from 1 January 2024.

What is the New Frontier Agreement?

The New Frontier Agreement is an international agreement signed between Switzerland and Italy on 23 December 2020. This agreement aims to simplify the procedures for transferring frontier workers between the two countries. The new agreement enters into force on 1 January 2024 and replaces the previous agreement.

Benefits for frontier workers

Border crossers moving to Domaso can enjoy a number of benefits, including:

• Access to the labour market : frontier workers can access the Swiss labour market without the need for a residence permit.
• Employment law: frontier workers have the right to work in Switzerland and can be hired by a Swiss employer.
• Taxes: Border crossers are subject to Swiss tax taxes and can benefit from a reduction in tax rates.
• Social insurance: frontier workers are entitled to Swiss social benefits, such as medical care and pension.

Concrete examples

Here are some examples

Operational details

Border crossers who move to Domaso can enjoy a number of advantages, such as the exemption of €7,500 until 2033. However, it is important to note that the new frontier workers have a deductible of €10,000.

In order to better understand the opportunities and challenges facing cross-border workers moving to Domaso, it is useful to analyse the various aspects of the transfer process.

Benefits

• The exemption of €7,500 until 2033 represents an important advantage for border crossers who move to Domaso. This means that tax burdens will be reduced, allowing you to save more money for investments or for your own well-being.
• The possibility of enjoying a higher income thanks to the difference in taxation between Switzerland and your country of origin. For example, a frontier worker earning €50,000 in Switzerland could be taxed in Switzerland as €40,000, while in Italy it could be taxed as €60,000.
• The ability to access services and benefits that are not available in your home country. For example, frontier workers can access high-quality health services at competitive prices.

Against

• The excess of €10,000 represents an important limit for new frontier workers. This means that tax burdens will be higher than for border crossers who have previously moved.
• The possibility of having to pay taxes in Switzerland and in your home country.

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 Domaso, it is important to know the procedures and deadlines to obtain the exemption of €7,500. You can refer to the New Frontier Agreement for more information on benefits and conditions of application.

Exemption of €7,500: how does it work?

To qualify for the €7,500 exemption, certain conditions must be met. Under the New Frontier Agreement, foreigners who move to Switzerland can obtain a removal allowance of €7,500. However, it is important to note that this allowance is subject to certain conditions and requirements.

Exemption requirements

To obtain the exemption of €7,500, you must:

• be a frontier worker moving to Switzerland;
• have a monthly income of at least CHF 2,500;
• have an employment contract of at least 12 months;
• have a stable accommodation in Switzerland;
• be able to prove their identity and residence.

Exemption Procedure

To claim the exemption of €7,500, you must follow the following procedure:

1. Consult the New Frontier Agreement: you can consult the New Frontier Agreement for more information on the benefits and conditions of the exemption. 2. Apply for labor certification: You must apply for labor certification from your employer. 3. Collect evidence - you need to

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.