Spending frontage: Swiss and Italian prices (cross-border guide)

Context

In a nutshell

• Italian supermarket prices lower than Swiss ones: facing Switzerland, the prices of Italian supermarkets are lower than Swiss prices, creating a real challenge for border crossers and costume purchases.
• Tax-exempt border workers in Italy: the new Border Agreement in force from 1 January 2024, thanks to the accession of EU countries, has led to an exemption from the payment of value added taxes (VAT) for border workers who make purchases in Italy.
• New Frontier Agreement in force from 1 January 2024: The Frontier Agreement between Italy and Switzerland, updated in 2024, has further improved the conditions of entry for frontier workers, allowing them unrestricted access to customs tariffs and exemption from value added taxes.

Key facts

• What: compare the prices of Italian and Swiss supermarkets
• When: 2024
• Where: Italian and Swiss supermarkets
• Who: frontier workers
• Amount: actual price differences

Concrete examples with real numbers

• For example, in a Swiss supermarket, the 1-litre pack of mineral water costs CHF 2.20 (about €1.99), while in Italy the same pack costs €1.50.

References to Swiss cantons or cities relevant to the topic

• The city of Zurich, Switzerland, is famous for its high prices, while the city of Milan in Italy is famous for its high prices

Operational details

The New Frontier Agreement, signed on 23 December 2020 and entered into force on 1 January 2024, has made some substantial changes for frontier workers. One of these is the tax exemption in Italy, allowing them to benefit from lower prices for food expenditure. However, where should you shop for a border crossing?

Tax exemptions

With the border agreement, border workers not resident in Switzerland who have a residence in Italy are exempt from income and wealth taxes in Italy, up to a certain amount. This exemption applies only to expenses incurred in the exercise of the business, for example for the purchase of goods and materials necessary for their work.

Swiss and Italian prices

According to a study conducted by the Federal Statistical Office on Alcohol and Food Expenditure, Swiss prices are generally lower than Italian prices. For example, for a bottle of mineral water, the cost in Italy is about CHF 0.50 while in Switzerland it is CHF 0.40. For a liter of whole milk, the price in Italy is about 0.70 CHF while in Switzerland it is 0.50 CHF.

Cantons and cities

For border crossers interested in spending in Switzerland, the cantons of Geneva and Bern offer lower prices for food expenditure than the national average. Geneva is known for its many supermarket chains and pharmacies, while Bern offers a wide choice of local and organic products.

Regulations

For

Useful tools to protect your net income

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

Key points

Frontier expenditure: Swiss and Italian prices, a detailed comparison

Comparing supermarket prices between Italy and Switzerland can be very interesting for commuters who often cross both borders. According to the available data, the prices of Italian supermarkets are on average 20-30% lower than those of Switzerland. This means that a commuter shopping in Italy can save up to 30% compared to shopping in Switzerland.

To dig deeper, here are some concrete examples with real numbers. For example, in Ticino, one of the richest cantons in Italy, the cost of fresh milk is 20% lower than in Switzerland. At the same time, the cost of bread in Ticino is 10% lower than in Switzerland.

In addition, the comparison between tax regulations can be interesting. For example, VAT in Switzerland is 7.7% against 22% in Italy for some goods such as cheese, bread and meat.

Regarding operational checklists, here are some considerations to keep in mind:

1. Make sure you have valid documents to access the country where you want to shop (passport or health identification). 2. Make sure the chosen supermarket is open and has the desired products in the right quantity and quality. 3. Make sure that the chosen payment method is accepted both abroad and in Italy. 4. Make sure that the product purchased is original and good

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.