Cross-border commuters: documents and first day of work in Ticino (cross-border guide)

Contesto

In brief

• The new Cross-Border Agreement is in effect from January 1, 2024.
• Taxation occurs exclusively in Switzerland at source.
• The tax credit in Italy prevents double taxation.
• Necessary personal documents, signed contract, and banking details.

Key facts

• What: Requirements for cross-border workers
• When: From January 1, 2024
• Where: Ticino and Switzerland
• Who: Cross-border workers
• Agreement: Signed 12/23/2020

The first day of work in Ticino represents a crucial moment for every cross-border worker, requiring careful preparation in terms of documentation and bureaucratic compliance. From January 1, 2024, the new Agreement between Italy and Switzerland, ratified by Law 83 of June 13, 2023, systematically regulates the position of workers residing across the border. It is essential to emphasize that, according to current regulations, income tax from work is withheld exclusively in Switzerland, eliminating double taxation thanks to the tax credit system provided within the framework of the Italian income tax return. The Convention to avoid double taxation, signed on December 9, 1976, remains a fundamental pillar, although regulatory evolution has introduced specific transitional regimes for so-called old cross-border workers, defined as those who were already such before July 17, 2023. For these individuals, the transitional regime will be active until 2033, providing an exemption of 7,500 euros, while for new cross-border workers, the exemption is set at 10,000 euros.

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Dettagli operativi

Analysis of pension obligations The salary structure in Switzerland consists of a gross salary from which the portions of compulsory social contributions are deducted. For each cross-border commuter, the employer pays the AHV, IV and EO contributions, which amount to a total of 5.3% to be paid by the employee. To these is added the contribution for unemployment insurance, equal to 1.1%, calculated up to the maximum limit provided for by law. The occupational pension, known as BVG, involves a variable deduction of between 7% and 18% depending on the age of the worker, with obligations starting from the age of 25. It is important to remember that Switzerland is not a member of the European Union or the European Economic Area, which is why labour and social protection regulations follow autonomous logics, although they are harmonised with bilateral treaties. ### Management of the KVG A fundamental aspect for those who work in Ticino is the choice of health insurance, known as KVG. Cross-border commuters have the so-called right of option, which allows them to choose between the Swiss and Italian systems. The decision must be formalized correctly, as it significantly affects the cost of living and health coverage. Deductibles for adults usually range between CHF 300 and CHF 2,500. Approfondisci le coperture sanitarie to evaluate the most convenient option based on your family and residence needs. The management of social contributions, such as the UVG for accidents, which fluctuates between 0.7% and 1.5%, is an integral part of the paycheck. Compared to the past, the new agreement has made the tax relationship more linear, but it is necessary to maintain strict management of documentation, especially with regard to the cross-border commuter certificate and the annual tax documentation, which will have to be correctly integrated into the 730 form in Italy to benefit from the tax credit, thus avoiding paying taxes twice on the same income.

Punti chiave

Operational checklist for the first day To face the first day of work with total peace of mind, it is advisable to prepare a file containing the essential documents in advance. First of all, the signed employment contract in duplicate, necessary for the work permit application, which must always be available. Secondly, it is essential to have the bank details of an account on hand, preferably in Swiss francs, to facilitate the crediting of salary and the payment of current expenses. Many banking institutions offer specific solutions for cross-border commuters, so confronta i conti bancari to optimize management costs and exchange rates. It is also useful to bring a copy of the Italian tax code and a valid identity document for expatriation. ### Income and tax management Once in the office, the employer will proceed to register the employee with the cantonal offices responsible for notification of the start of activity. The worker must fill in the withholding tax form, indicating the marital status and the number of dependent children, elements that determine the applicable rate. It is advisable to check that the health insurance has been chosen and communicated, as the insurance obligation starts from the first day of work. For those planning for the future, the third pillar is a complementary solution to the AHV and BVG, useful for optimising the tax burden and building long-term retirement savings. Scopri le opzioni per il terzo pilastro and consider how to supplement your future pension. The careful management of these steps, from the first day until the end of the tax year, ensures a stable working career in Ticino, minimizing the risks of bureaucratic errors or unforeseen double taxation. Cooperation with the employer, which acts as an interface with the Swiss authorities, remains the best way to resolve procedural doubts and ensure the correct application of the applicable rules.