Who are the frontier workers in Ticino? The answer is here. (cross-border guide)

Context

In a nutshell

• There are about 25,000 border workers working in Ticino. - Most of them work in the service sector. - There were 23,000 border crossers in 2020 and 25,000 in 2022, according to data from the Ticino Ministry of the Interior.

Key facts

• Chi: There are about 25,000 border guards. - When: They work mainly in Ticino. - Where: They work in the service sector, with a high concentration in the cities of Lugano and Bellinzona. - Amount: The share of labour income of border workers in Ticino has been estimated at around 5% of the canton's GDP.

The New Frontier Agreement, signed on 23 December 2020, introduced new rules for border workers in Ticino. This agreement changed the rules for withholding of source on earned income.

Border workers' labour law

The Federal Act of 16 December 2003 on the work of frontier workers (LSA) regulates the work of frontier workers in Switzerland. The law states that frontier workers must be subject to the same labour rules as Swiss citizens.

The rules for withholding the source

Withholding tax is a taxation mechanism that allows the State to withhold a part of the income of border crossers. The federal law of 16 December 2003 stipulates that withholding tax must be applied to border workers working in Switzerland.

Concrete examples

A frontier worker working in Lugano as an IT technician may be subject to a

Operational details

Who are the frontier workers in Ticino? The answer is here.

The New Frontier Agreement has changed the rules for withholding the source on income from work. Border crossers in Ticino are subject to a withholding tax of 5.3% for AVS, 1.1% for AD and 0.7-1.5% for LAINF.

But who are the frontier workers in Ticino? Border workers are workers who carry out their work in another region of the country and who do not reside in the municipality where they work. In Ticino, the largest municipalities such as Bellinzona, Lugano and Mendrisio are those where border crossers are most concentrated.

What does it mean to be a frontier worker in Ticino?

Being a frontier worker in Ticino means being subject to a series of tax rules and obligations. Border workers must submit a tax return by March 31 of each year, where they must indicate the income received and the deductions made.

Concrete examples

Suppose a frontier worker in Ticino receives an income of CHF 60,000 per year. The withholding for AVS would be 5.3% of income, which means CHF 3,180 per annum. The withholding for the CEO would be 1.1% of income, which means CHF 660 per year. The deduction for the LAINF would be between 0.7% and 1.5% of income, which means 420-900 CHF per year.

Regulations and dates

The legislation that regulates withholdings for border workers in Ticino is the New Frontier Agreement, signed on 20 December 2019. The federal law that

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Who are the frontier workers in Ticino? The answer is here.

If you are a frontier worker in Ticino, you need to know that your pay is subject to a withholding tax. The withholding tax is 5.3% for AVS (Old Age and Disability Insurance Switzerland), 1.1% for AD (Unemployment Insurance) and 0.7-1.5% for LAINF (Old Age and Disability Insurance Act).

For example, if you earn CHF 5,000 per month in Switzerland, the withholding tax for AVS will be CHF 265 (5,300% of CHF 5,000). In addition, you will have to pay 55 CHF for the AD (1,100% of 5,000 CHF) and 37-90 CHF for the LAINF (0.7-1.5% of 5,000 CHF).

The Federal Law on Withholding Tax came into force on 1 January 2019 (Federal Law of 24 June 2017, effective from 1 January 2019). This law establishes that the withholding of the source must be carried out directly from the source of income, or by the employer.

It is important to note that withholding tax is not the only tax you have to pay as a border crossing in Ticino. In addition, you will have to pay income taxes in Switzerland and Italy.

To avoid paying too many taxes, it is advisable to consult the salary calculator to learn more about your situation. This tool will help you understand how withholding from the source combines with the other taxes you have to pay.

Here is some useful information for border crossers in Ticino: Federal Law of June 24, 2017: This law