New cross-border commuter agreement already having an impact in Ticino
Published: Saturday, Nov 18th 2023, 13:30
Updated At: Saturday, Nov 18th 2023, 13:33
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The new cross-border commuter agreement between Switzerland and Italy, which came into force in July, is already making itself felt in Ticino. Fewer Italian nationals are applying for jobs in the catering industry.
Massimo Suter, President of Gastro Ticino, confirmed to the news agency Keystone-SDA a report in the "Corriere del Ticino" on Saturday, according to which there has been a drop in applications of between 30 and 50 percent in the gastronomy sector.
Before the new agreement came into force - i.e. until July 16 - there was a veritable "run" on employment contracts, Suter continued. The reason: anyone who was employed in Switzerland before July 17 could still benefit from the old conditions or a transitional regime.
Applications from Italy have also fallen by up to 50 percent in Ticino's industrial sector compared to the previous year. This was the result of a survey of several dozen medium-sized companies, said Stefano Modenini, Director of the Ticino Industry Association, when asked by Keystone-SDA. He fears that the situation will get worse.
According to Modenini, in addition to the new tax agreement, two other factors are leading to a change in the attitude of cross-border commuters when looking for work: firstly, the negative demographic trend is contributing to the fact that Italians are more likely to look for work in their home country. Secondly, the younger generation has a different attitude to work and mainly applies for part-time jobs.
Almost 80,000 cross-border commuters in Ticino
Under the new agreement, Switzerland will retain 80% of the withholding tax levied on the income of Italian cross-border commuters. The new cross-border commuters are also taxed properly in their country of residence, and this is intended to eliminate double taxation.
Under the old agreement, which dates back to 1974, cross-border commuters were only taxed in Switzerland, with Italy being entitled to 38.8% of the withholding tax. A transitional arrangement applies to persons who worked in the cantons of Ticino, Graubünden and Valais between the end of December 2018 and the date on which the text came into force.
According to the new agreement, cross-border workers are people who live within 20 kilometers of the border and generally return to their place of residence every day. This new definition applies to all cross-border workers from the date on which the agreement comes into force.
Almost 80,000 Italian workers cross the Swiss border into the canton of Ticino every day. The majority of them come from Lombardy.
©Keystone/SDA
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