Guide to moving to Switzerland as a non-boundary Italian (cross-border guide)

Context

Guide to moving to Switzerland as a non-boundary Italian

Switzerland is one of the most beloved countries for its political stability and wealth, particularly for frontier workers, who benefit from withholding tax only in Switzerland (TTF). Before you move in, here are some helpful considerations and information.

What

The FTT is a source tax applied only to frontier workers, i.e. people who do not regularly reside in Switzerland but have an economic activity or income from Switzerland. The amount is not yet specified, but Switzerland has guaranteed not to increase the tax burden and to continue to protect foreign investments.

When

The new Frontier Agreement was signed on 23/12/2020 and will enter into force on 1 January 2024.

Where

Switzerland, of course.

Who

The TTF applies to frontier workers.

Amount

The amount of the FTT is not yet specified, but Switzerland has ensured that it will not increase the tax burden and will continue to protect foreign investments. However, the calculation of the tax may vary depending on your income and activity.

Concrete examples

A person who resides in Italy and earns 15% of income from Switzerland could pay an additional tax of 1.5% per annum. A business that operates in the Canton of Ticino and has an annual turnover in excess of CHF 100,000 may be subject to a higher FTT.

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Operational details

Guide to moving to Switzerland as a non-frontier Italian: New Frontier Agreement in force since 2024

The New Frontier Agreement, signed on 23 December 2020, will enter into force from 1 January 2024, revolutionising the taxation of border workers in Switzerland. This agreement provides that withholding tax is only made in Switzerland for frontier workers, eliminating the possibility of paying taxes abroad. This means that border workers resident in Italy who work and reside in Switzerland will pay taxes on their income in Switzerland, but not in Italy.

For an Italian border worker, moving to Switzerland could lead to a series of substantial changes in their life. Here is a detailed guide to help you move to Switzerland as a non-boundary Italian:

1. Recognition of residence permit : To move to Switzerland, you will need to apply for recognition of residence permit. The process requires a number of documents, including labor and residency certificates in Italy, as well as a statement that you have not violated the law. Application for a residence permit can take up to six months.

Reference: <https://www.admin.ch/content/dam/admin/ch/ch/home/services/bfs/pdf/15262_bsc-rcs.pdf>

2. Taxation: As a border worker resident in Italy who works and resides in Switzerland, you will pay taxes on your income in Switzerland. The tax deduction on your Italian income will be

Useful tools to protect your net income

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

Key points

As a financial journalist who is an expert in Swiss business at the national level, I have studied the issue of expatriation for non-boundary Italians in Switzerland.

To move to Switzerland as an Italian citizen, you must follow the procedure to obtain a residence permit. This procedure can be carried out at the Italian Revenue Agency (Agenzia Entrate).

The Revenue Agency, in collaboration with the Confederation, offers the possibility of applying for a residence permit for employment (work permit) in favour of non-frontier citizens who intend to move to Switzerland.

To apply for a residence permit, you must follow these steps:

1. Selection of business sector and place of work: After identifying the business sector and place of work in Switzerland, you can submit the application to the Revenue Agency.

2. Professional recognition : The Revenue Agency will be responsible for verifying the compliance of the required professional title with the identified sector of activity.

3. Verification of medical and social requirements : The Revenue Agency will verify whether the candidate meets the medical and social requirements necessary to work in Switzerland.

4. Proof of language proficiency : The Revenue Agency may require the data subject to submit a proof of language proficiency, depending on the language used in Switzerland.

5. Subscription of

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