Italy and Switzerland want to sign cross-border commuter agreements

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At a joint press conference, Italy's head of government emphasized the valuable contribution that Italian cross-border commuters make to the Ticino health system. The pandemic has shown how valuable the Italian workers are for Switzerland, especially for Ticino.

Conte said, the pandemic had taught both states that there was no alternative to working together if citizens were to be kept safe. The crisis has shown us how our fates are linked and how much we can gain from fruitful bilateral cooperation.

Finally move the cross-border commuter agreement forward

The two heads of state affirmed that they had made progress in the negotiations on the tax treatment of cross-border commuters. The cross-border commuter agreement from 2015 should be signed by the end of the year.

Switzerland also thinks it is important to keep the borders with Italy open during the crisis, the Federal President further assured.

Sommaruga said, with its neighboring countries, Switzerland is pursuing a regional approach by excluding border regions and cross-border commuters from the quarantine regulation. "I hope we can continue this way.

Current valid cross-border commuter agreement from 1974

The cross-border commuter agreement was negotiated in 2015. However, it has not yet been signed. It must then be ratified by the parliaments of both countries. The currently valid agreement dates from 1974 and provides that cross-border commuters are only taxed in Switzerland, with Italy being entitled to 38.8 percent of the withholding tax. In the new agreement, cross-border commuters are taxed in both countries.

Instead of the current 61.2, Switzerland should be allowed to levy up to 70 percent of the total withholding tax. Italy should deduct the amount already paid in Switzerland from its tax. This means that cross-border commuters will have a greater financial burden in the future.

Around 320,000 Italian citizens live in Switzerland. This makes the Italians the largest community of foreigners in Switzerland. In addition, more than 70,000 cross-border commuters commute to Switzerland every day.