Working as a chalker in Ticino: a guide for border workers (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement is in force from 1 January 2024.
• Tax at source is withheld only in Switzerland.
• The G permit is necessary to carry out the activity in Ticino.
• The AVS/AI/IPG contribution to be borne by the employee is 5.3%.

Key facts

• What: Profession of plasterer for frontier workers.
• When: New Frontier Agreement operational from 1 January 2024.
• Where: Canton Ticino, Switzerland.
• Who: Swiss frontier workers and employers.
• Amount: AVS/AI/IPG employee 5.3%; AD/AC 1.1% up to CHF 148,200.

The Ticino construction sector represents an important opportunity for specialised professionals, such as plasterers, who reside in Italy and wish to undertake a career in the Canton of Ticino. Since 1 January 2024, the regulatory landscape has changed following the entry into force of the new tax agreement between Italy and Switzerland, signed on 23 December 2020 and ratified by Law 83 of 13 June 2023. This legislation has redefined the methods of taxation of employee income for cross-border workers, consolidating the principle of exclusive taxation in Switzerland, while Italy provides for the avoidance of double taxation through the tax credit in the EC framework of model 730.

Regulations and permits

To operate regularly on the Ticino territory, the border crossing must be in possession of the G permit, issued by the cantonal authorities

Operational details

The practical analysis for a plasterer evaluating a job in Ticino must carefully consider the structure of social and pension contributions, which significantly differs from the Italian one. The Swiss payroll box is subject to mandatory withholdings that guarantee coverage of AVS (old age and survivors' insurance), AI (disability insurance), and IPG (loss of earnings indemnity), with a 5.3% employee contribution rate. Regarding unemployment insurance (AD/AC), the rate is 1.1% applied up to a maximum of CHF 148,200. It is essential to highlight that professional pension (LPP) represents a fundamental pillar, with contribution rates varying by age range from the 25th year, and the employer is required to cover at least half of the total contribution. LAINF (accident insurance) involves additional withholdings ranging from 0.7% to 1.5% depending on the risk level of the performed task, a particularly relevant aspect for those working in construction sites.

Useful planning tools

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

Key points

The procedure to start working as a plasterer in the Canton of Ticino requires careful planning. After obtaining a job offer, the employer submits the request for a G permit. Once the permit is obtained, the worker must regularize their health status. According to the LAMal regulation, the border worker can choose between the Swiss or Italian health insurance system; in the case of choosing the Swiss system, the adult franchise varies between 300 and 2500 CHF. It is necessary to constantly monitor the communications of the Italian Revenue Agency and the MEF regarding the tax obligations in Italy, ensuring that the pay slips and fiscal certifications issued by the Swiss employer are properly kept for the compilation of the CE form in the 730.

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.