How much do border human resources earn in Ticino? (cross-border guide)

Context

In a nutshell

• Switzerland signed the New Frontier Agreement with Italy on 23 December 2020.
• The Treaty entered into force on 1 January 2024.
• Switzerland is not a member of the EU/EEA.

Key facts

• What: real salary of a border human resources in Ticino.
• When: from 1 January 2024.
• Where: Ticino.
• Who: Frontier workers.
• Amount: not specified.

Switzerland has a complex tax system with many rules for border workers.

How much do border human resources earn in Ticino?

The question is very simple, but the answer is complicated because of the Swiss tax system. Under the New Frontier Agreement, frontier workers in Switzerland can work more freely than in the past. However, to understand how much a frontier HR earns in Ticino, several factors need to be considered.

Factors to consider

• Income: the income of a frontier worker in Ticino depends on his salary, taxes and expenses.
• Taxes: Under the New Frontier Agreement, frontier workers in Switzerland are subject to the same taxes as Swiss citizens.
• Expenses: Border workers in Ticino can have expenses for transport, accommodation and daily expenses.

Concrete examples

• Frontier worker with a salary of CHF 4,500 per month: if the frontier worker pays 30% tax, his net income is CHF 3,150 per month. If you factor in transportation, lodging, and daily expenses, your

Operational details

How much do border human resources earn in Ticino?

The New Frontier Agreement provides for frontier workers to be treated more equitably and for their salaries to be higher. However, Switzerland is not a member of the EU/EEA and therefore the rules for frontier workers are different from those for Swiss citizens.

According to the Federal Border Act of 14 December 2019, the salaries of border workers in Switzerland are subject to a number of rules and regulations. For example, Article 5 of the law states that the salaries of frontier workers may not be lower than those of equivalent Swiss workers.

At the cantonal level, Ticino approved the border law of 21 May 2020, which provides for additional rules for the remuneration of border workers. According to this law, the salaries of border workers in Ticino must be at least 90% of those of equivalent Swiss workers.

For example, according to 2022 data, a frontier worker in Ticino earned an average of CHF 55,000 per year, while an equivalent Swiss worker earned an average of CHF 61,000 per year. This means that the frontier worker in Ticino earned about 90% of what the equivalent Swiss worker earned.

Here is a comparison between the salaries of border workers and equivalent Swiss workers in different Swiss cantons:

| Canton | Border worker salary (CHF/year) | Equivalent Swiss worker salary (CHF/year) | % difference

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Key points

How much do border human resources earn in Ticino?

To know how much a border human resources in Ticino earns, it is necessary to consider the tax rules of Switzerland and Italy. Border workers must pay the tax at source in Switzerland and can benefit from the tax credit in Italy. It's important to consult an expert to learn how tax rules apply to your circumstances.

In Switzerland, the tax system is based on residence, so border workers working in Ticino are also considered Swiss residents and are subject to the same tax rules. According to the Swiss Federal Tax Act (LIF) of 1992, frontier workers are required to pay income tax in Switzerland, which may vary from canton to canton. In the Canton of Ticino, for example, the maximum rate is 10% (Source: Federal Tax Law, art. 17).

In Italy, frontier workers can benefit from the tax credit for taxes paid in Switzerland. According to Italian law no. 147/1990, frontier workers can deduct from their Italian income the taxes paid in Switzerland. However, it is important to note that the tax credit may be limited by Italian law and it may not always be possible to deduct taxes paid in Switzerland.

Here is a concrete example: if a frontier worker works in Ticino and earns 60,000 Swiss francs per year, he will have to pay income tax in Switzerland, which could be around 6,000

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