Federal votes Switzerland: how they work and rules (cross-border guide)

Context

In brief

• Direct democracy based on initiatives and referendums
• Double majority of people and cantons
• New Border Agreement in force from January 1, 2024
• Double taxation convention signed on December 9, 1976

Key facts

• What: Federal elections and direct democracy tools
• When: In force from January 1, 2024 for the new agreement
• Where: Swiss Confederation
• Who: Swiss citizens and federal entities such as SECO, SEM, USTAT, UFSP/BAG, SUVA, INPS, Revenue Agency, MEF, BFS, AFC/ESTV
• Amount: AVS/AI/IPG 5.3% dependent, AD/AC 1.1% (CHF 148,200 cap), LAINF 0.7-1.5%, LPP 7-18%

Operational details

The practical analysis of the Swiss democratic and fiscal system requires considering the distinction between old borderlanders, namely those who were already such before July 17, 2023, who benefit from an exemption of 7,500 euros and a transitional regime covering the period 2024–2033, and new borderlanders, for whom a 10,000 euro exemption is provided. The evolution of bilateral treaties and fiscal provisions is inserted into a monitored institutional context by statistical and pension entities such as the BFS and UFSP/BAG, although the definition of tax rates remains the exclusive competence of federal and cantonal tax administrations such as the AFC/ESTV. At the pension and insurance level, workers must confront the LAMal system, namely health insurance, for which borderlanders with a G permit maintain the right to opt, with exemptions for adults ranging from 300 to 2,500 Swiss francs. The management of social contributions, including the 1.1% deductions for unemployment AD/AC and the loss of income IPG allowances, ensures comprehensive coverage within the Swiss labour market. When analyzing economic dynamics and democratic participation, it is essential to understand how Parliament and Federal Council decisions affect living costs and personal asset management, making it useful to use analysis tools to evaluate the overall tax pressure between the two countries. For a detailed assessment of financial sustainability and pension withholdings, it is recommended to regularly check your position through the [salary and tax calculator].

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

The management of tax obligations and the understanding of institutional deadlines require a methodical and informed approach, especially for those who operate daily between Italy and Switzerland. Frontier workers must carefully check their contribution position, checking the monthly payroll deductions related to AVS/AI/IPG at 5.3%, AD/AC at 1.1%, LAINF between 0.7% and 1.5% and LPP from 7% to 18% for the age groups from 25 years onwards, comparing them with the Italian IRPEF rates of 23%, 35% and 43%. For old border workers, compliance with the requirements for the transitional regime 2024–2033 and the exemption of 7,500 euros must be monitored, while new hires after 17 July 2023 must refer to the deductible of 10,000 euros and the provisions of the New Border Agreement in force from 1 January 2024. The procedures also require the correct management of the LAMal option right and health deductibles between 300 and 2,500 Swiss francs, avoiding errors in the tax return through the EC framework of 730 to take advantage of the tax credit and avoid double taxation. To better plan every aspect related to taxation and wage deductions, access il calcolatore stipendio e imposte now.