Living in Bene Lario, working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement, which entered into force on 1 January 2024, modifies the tax regime.
• Deductible €10,000 for new frontier workers.
• Tax at source withheld only in Switzerland, Italy avoids double taxation with credit 730.

Key facts

• What: New border tax regime with income exemption and economic convenience margins
• When: Effective from 1 January 2024 (Law 83/2023)
• Where: Italy-Switzerland bilateral agreement with impact on areas such as Bene Lario
• Who: INPS, Revenue Agency, AFC/Swiss Federal Contributions Administration
• Amount: Deductible €10,000 per year for new frontier workers

Bene Lario is one of the favourite destinations for those who decide to work in Ticino while maintaining their residence in Lombardy. The choice to move from frontier involves a series of economic and bureaucratic considerations that revolve around the tax regime in force. The main innovation of recent years concerns the application of the New Frontier Agreement , signed on 23 December 2020 and operational from 1 January 2024 with Italian ratification through Law 83 of 13 June 2023.

The regulatory change represents a turning point for those considering relocation to this area of the province of Como. The agreement redefines how taxation is calculated on the paycheck of workers who reside in Italy but serve in Switzerland. For new work frontiersmen

Operational details

Moving to Bene Lario: advantages and disadvantages

The choice to reside in Bene Lario while working in Ticino involves a series of aspects that go beyond pure tax convenience. The border community already settled in this area highlights some practical advantages related to geography and quality of life, along with challenges that must be considered realistically.

From a housing point of view, Bene Lario offers a lower cost of living than that of the Canton of Ticino in several sectors: rent, purchase of real estate, catering services and commerce. Those who choose to live in Italy and work in Switzerland capitalise on this difference, reinvesting the savings margin in the family budget or in long-term project capital (AVS/LPP social security savings, third pillar 3a).

Cross-border connections to Ticino are a decisive element. Bene Lario is located in a position that allows you to reach various crossings and work destinations: the territory can be reached from the main road axes towards the Italian border (A9, Lario state road). Travel times to the main Ticino work centres vary depending on the specific destination, the vehicle used and the traffic conditions at the crossings (Chiasso, Brogeda, Gaggiolo, Ponte Tresa). In the summer season and during peak periods, it is advisable to estimate an increase in transit times.

Consider mobility

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Procedure: How to Start Cross-Border Commuting from Bene Lario to Ticino Anyone deciding to move to Italy as a resident and accept a job offer in Ticino must follow a sequence of administrative formalities. The critical points concern the work permit, Swiss tax registration, enrollment in pension funds, and health insurance. To work in Switzerland, an Italian citizen needs a Permit G (cross-border) or, alternatively, Permit B (residence with work rights). Permit G is issued by the Canton where the work is performed (e.g., Lugano, Mendrisio, Bellinzona depending on the company). The procedure requires a signed job offer from the company, submission of the application through the employer to the cantonal migration office (SEM), and issuance of the permit within a few weeks. Permit G authorizes cross-border work while maintaining residence in Italy. ### Tax Registration and Contributions Once hired and in possession of the permit, the cross-border worker is automatically enrolled in the Swiss pension system. AVS (old-age and survivors' insurance) and AI (disability insurance) are mandatory: the deduction is 5.3% of the gross salary for the employee. AD (unemployment insurance) covers the risk of job loss with an additional 1.1% deduction up to the annual ceiling (CHF 148,200). LAINF (occupational accident insurance) is the employer's responsibility and covers work-related incidents. Finally, LPP (professional pension insurance / second pillar) varies between 7% and 18% of the salary depending on the age class (obligatory from the 25th birthday) and the company's pension plan. On the Italian side, income from Switzerland is declared through the model 730 or RdC (category income), with the application of the €10,000 exemption for new cross-border workers and the deduction of the tax credit for withholding taxes already paid to the Canton. INPS and the Revenue Agency manage, respectively, the verification of Italian social security contributions (minimum integration) and the correct application of the 2024 Border Workers Agreement. ### Choosing Health Insurance Health insurance is a crucial step. In Switzerland, enrollment in a LAMal (Federal Law on Health Insurance) is mandatory: it is coverage with a deductible (from CHF 300 to CHF 2,500 for adults) and variable monthly premiums according to the company and risk. Cross-border workers have the right to choose: they can opt to remain enrolled in the Italian healthcare system (SSN + private supplementary insurance) or switch to Swiss LAMal. The choice affects access to services, delivery times, direct costs, and the network of usable facilities. To proceed effectively, it is advisable to: - Request from the Swiss employer all necessary documentation for registration with federal authorities (employment declaration, company data, name of the SUVA intermediary if present). - Open a bank account with a bank operating in both countries (CHF and EUR) to simplify payroll and recurring payment management. - Evaluate the convenience between Swiss LAMal and Italian supplementary insurance with the support of an intermediary familiar with both systems. - Verify with the Italian municipality of residence the registration as a foreign resident and communication with the Guardia di Finanza for compliance with declarative obligations. - Consult the salary calculator to simulate the net paycheck and verify the impact of the €10,000 exemption on the annual declaration. Moving as a cross-border worker from Bene Lario to Ticino is an economically advantageous choice for many, but it requires careful planning regarding taxes, permits, social security, and healthcare. Having clear documentation from the start and following the scheduled administrative timelines significantly reduces stress and costs during the transition.