Moving to Castello Dell 'Acqua from a border crossing: pros and cons

Context

The agreement between Italy and Switzerland provides new rules for border workers who intend to move to Castello Dell 'Acqua for work. The new 2024 tax agreement provides for a deductible of €10,000 for new frontier workers. Switzerland is not a member of the EU/EEA.

The transfer of a border worker to Ticino can be an interesting option for those looking for new job opportunities. However, it is important to know the rules and regulations governing the work of border workers in Switzerland.

According to the Convention between Italy and Switzerland for the distribution of the incomes of frontier workers, signed on 5 October 1971 and amended on 19 July 1995, frontier workers may stay in Switzerland for a maximum of 90 days per year, with the possibility of extension for a further 90 days. In this case, the extension application must be submitted by 31 March of the year following the end of the stay.

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. The new Agreement regime has applied since 1 January 2024. However, it is important to note that Switzerland is not a member of the EU/EEA, so the rules and regulations may vary from those applied in the rest of the EU.

For border crossers who intend to move to Castello Dell 'Acqua, it is also important to consider the possibility of registering on the list of foreigners residing in Switzerland, which allows them to stay in Switzerland

Operational details

Italy and Switzerland have signed a new tax agreement that provides for new rules for cross-border workers who intend to move to Castello Dell'Acqua for work. The 10.000 euro threshold in Art. 4 of Law 83/2023 concerns exclusively employment income earned abroad, in a border area or neighboring country, on a continuous and exclusive basis, by persons resident in Italy, referred to in Art. 1, paragraph 175, of Law 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax. Switzerland is not a member of the EU/EEA.

This agreement represents an opportunity for cross-border workers to move to Switzerland and enjoy greater economic and professional stability. However, it is also important to consider any challenges and limitations associated with this move.

Pros of the move

• Switzerland offers a more stable economy and a greater range of services than many other countries.
• Switzerland's geographical location offers easy access to European markets and greater visibility for businesses.

Cons of the move

• Switzerland is not a member of the EU/EEA, which may entail limitations for cross-border workers who wish to work in other European countries.
• Cross-border workers may have to face additional costs for enrollment in the Swiss pension system.

Concrete examples:

• Another female cross-border worker with an income of €80'000 could be subject to net taxation of approximately €50'000 due to the allowance.

References to specific municipalities in Ticino:

• The Ticino municipalities of Lugano, Bellinzona and Locarno offer a greater range of services and employment opportunities than many other countries.
• Switzerland's geographical location offers easy access to European markets and greater visibility for businesses.

Regulations with dates and amounts:

• On January 1, 2023, Italy and Switzerland signed the tax agreement providing for the €10'000 allowance for the transitional regime under Art. 9 of the Agreement, which applies only to those who meet the treaty definition and have worked in Graubünden, Ticino or Valais between December 31, 2018 and July 17, 2023; the covered employment income is taxed exclusively in Switzerland. In all other cases, the ordinary regime applies, with Italian taxation and a credit for Swiss tax. The 10.000 euro under Art. 4 of Law 83/2023 are merely the limit for the income referred to in Art. 1, paragraph 175, of Law 147/2013, not a general allowance. AFC fact sheet · Agreement, Art. 9 · Normattiva, Art. 4.

Operational checklist:

• Research into employment opportunities and services offered by municipalities in Ticino.
• Contact a tax adviser to obtain more precise information about taxation and any additional taxes.

Comparisons between practical scenarios:

• Another female cross-border worker with an income of €80'000 could be subject to net taxation of approximately €50'000 due to the allowance.

In conclusion, the new tax agreement between Italy and Switzerland represents an opportunity for cross-border workers to move to Switzerland and enjoy greater economic and professional stability. However, it is also important to consider any challenges and limitations associated with this move and consult a tax adviser to obtain more precise information.

Useful tools for your case

To practically verify your scenario within/beyond 20 km, use net salary calculator and tax return guide.

Key points

Moving to Castello dell 'Acqua from a border crossing: pros and cons

To understand the implications of the new tax agreement, it is advisable to consult a lawyer. In addition, it is important to check the €10,000 deductible for new frontier workers and to find out about the agreement between Italy and Switzerland.

The transfer of residence to Castello dell 'Acqua, a municipality in the district of Lugano, can be an attractive choice for frontier workers who wish to enjoy a unique natural environment and a strategic position to reach the main commercial and cultural centres of the region. However, it is essential to carefully consider the tax and bureaucratic implications associated with such a decision.

First of all, it is important to check the excess of €10,000 for new frontier workers, as established by the tax agreement between Italy and Switzerland. This allowance allows frontier workers not to pay taxes on their pay up to a certain amount, helping to reduce their tax burden. It is therefore essential to consult a lawyer to understand how this deductible may affect your tax situation.

In addition, it is important to inquire about the agreement between Italy and Switzerland, which establishes the rules for the transfer of residence and the remuneration of frontier workers. The convention provides that frontier workers are exempt from taxes on their pay up to a certain

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