Moving to La Salle from the border: pros and cons (cross-border guide)

Context

In a nutshell

• Tax at source for frontier workers is withheld in Switzerland. Italy avoids double taxation with the tax credit. The New Frontier Agreement was signed on 23 December 2020 and is in force from 1 January 2024.

The New Frontier Agreement introduced some significant changes for frontier workers. Switzerland and Italy have signed a new agreement providing for withholding tax in Switzerland and tax credit in Italy. This agreement aims to simplify tax procedures for border workers and reduce bureaucracy.

Moving to La Salle from the border: pros and cons

If you decide to move to La Salle as a border crossing, you need to consider both aspects. On the one hand, the New Frontier Agreement offers significant advantages for frontier workers. On the other hand, there are some aspects to consider.

Benefits

The New Frontier Agreement provides for withholding tax to be withheld at source in Switzerland, which means that you will not have to pay taxes in Italy. In addition, Italy avoids double taxation with the tax credit, which means you won't have to pay taxes twice.

For example, if you earn CHF 50,000 per year and the tax at source in Switzerland is 20%, you will have to pay CHF 10,000 per year in Switzerland. In Italy, you won't have to pay taxes, thanks to the tax credit.

Disadvantages

However, there are some aspects to consider. The New Frontier Agreement has been

Operational details

Key facts

• What: Tax at source for border workers. When: January 1, 2024. Where: Switzerland and Italy. Who: Frontier. Amount: Not specified.

The New Frontier Agreement also introduced a €10,000 allowance for new frontier workers and a transitional regime for old frontier workers.

Switzerland and Italy have signed a new agreement providing for withholding tax in Switzerland and tax credit in Italy.

Moving to La Salle from the border: pros and cons

The decision to move to La Salle as a border crossing can be an attractive option for those looking to improve their quality of life. However, it is important to consider the pros and cons of this choice.

• Improving quality of life: Switzerland is known for its high quality of life, with high-quality basic services, such as health, education and transport. Job opportunities: Switzerland offers many job opportunities, especially in the finance and technology sector. Market access: Switzerland is a member of the European Single Market, which means that frontier workers can access European markets without restrictions. * Deductible for new frontier workers: Switzerland has introduced a €10,000 deductible for new frontier workers, which means that they will not have to pay the tax at source for the first €10,000 of income.

• Tax at source: Switzerland provides for the

Useful tools to protect your net income

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

Key points

Initiatives

If you decide to move to La Salle, be sure to inform yourself about the new rules and any deadlines. The New Frontier Agreement introduced some significant changes for frontier workers. Switzerland and Italy have signed a new agreement providing for withholding tax in Switzerland and tax credit in Italy.

Withholding tax in Switzerland has been reduced from 35% to 15%, but only for employment income. Income from capital, on the other hand, is subject to withholding of 35%. The tax credit in Italy, on the other hand, has been increased from 30% to 50% for income from work.

Please do not hesitate to contact your tax advisor or employer for further information and clarification. It is important to note that the new rules are applicable from 1 January 2024 and that border workers must submit their tax return by 31 March 2025.

Concrete examples:

• If a border worker earns CHF 50,000 per year in Switzerland and CHF 20,000 per year in Italy, the withholding tax in Switzerland will be CHF 7,500 (15% of CHF 50,000) and the tax credit in Italy will be CHF 10,000 (50% of CHF 20,000). - If a frontier worker earns CHF 100,000 per year in Switzerland and CHF 30,000 per year in Italy, the withholding tax in Switzerland will be CHF 15,000 (15% of CHF 100,000) and the tax credit in Italy will be CHF 15,000 (50% of CHF 30,000).

• The New Frontier Agreement is

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