Living in Carnago, working in Ticino: border guide

Context

In a nutshell

• Frontier Gs subject to new regime from 1 January 2024
• Swiss tax: 5.3% AVS/AI + 0.7–1.5% LAINF (withheld in Switzerland)
• Excess €10,000 per year for new frontier workers; declaration deadline: 31 May

Key facts

• What: Employment in Ticino with permanent residence in Carnago (Italy)
• When: New agreement in force from 1 January 2024 (Law 83/2023)
• Where: Province of Varese, access via Brogeda/Chiasso, southern border Ticino
• Who: Italian worker with G border leave
• Rates: 5.3% AVS/AI/IPG + 0.7–1.5% LAINF + LPP 7–18% (payroll)

The G Permit: daily access to the Ticino labour market

Living in Carnago and working in Ticino means operating according to the border regime, governed by Permit G — the authorization provided by the cantonal authorities of Switzerland to Italian employees who cross the border daily for dependent activity. The G Permit is not a tourist visa, but an administrative document certifying the existence of a valid employment contract in Switzerland and permanent residence in Italy. Consulta la guida al Permesso G per dettagli su tempi di rilascio e rinnovo.

The geolocation of Carnago offers strategic advantages: it is located about 30–40 km from the area of Chiasso and Brogeda, the two most important border crossings of the south-southwest axis of Ticino. This distance, while not excluding significant travel times during peak hours, allows feasible daily access to the

Operational details

The new 2024 tax regime: Swiss source tax and Italian tax credit

From January 1, 2024, the new Agreement between Italy and Switzerland on border workers (signed on December 23, 2020 and ratified by Italy with Law 83 of June 13, 2023) has introduced substantial changes to the tax regime. The main innovation is the introduction of an annual income exemption of €10,000 for new border workers (those who started working after July 17, 2023).

Previous border workers before July 17, 2023 benefit from an exemption of €7,500 with a transitional regime valid until December 31, 2033. This distinction is relevant for calculating Italian tax and can result in significant differences over the employment period.

Source tax in Switzerland: withholding mechanism

The source tax on income is withheld exclusively in Switzerland. The Ticinese employer directly deducts from the monthly pay slip:

• 5.3% for AVS (Old-Age and Survivors Insurance) + AI (Invalidity Insurance) + IPG (Loss of Income Indemnity in case of unemployment)
• 0.7–1.5% for LAINF (Insurance against professional and non-professional accidents)
• 7–18% for LPP (Compulsory Pension Fund, with a rate varying by age group starting at 25 years)

These withholdings are automatically deducted from the gross Swiss pay slip; the net monthly amount is calculated after deducting these amounts. If you need clarification on tax credit and deductions, use the payslip simulator.

Avoid double taxation: Italian tax credit

Italy does not apply a separate source tax on border workers. However, the income is subject to IRPEF (Personal Income Tax) according to the ordinary rates:

• 23% up to €28,000
• 33% from €28,001 to €50,000
• 43% over €50,000

To avoid double taxation, the border worker uses the tax credit in the Italian model 730. The credit corresponds to the amount of source tax already paid in Switzerland; it is declared in the CE section of the income tax return and directly reduces the Italian IRPEF tax due. If the credit exceeds the Italian tax calculated, the border worker receives a refund (rebate) within the liquidation terms of the tax return.

LAMal, AVS, and LPP: dual pension systems

A often underestimated aspect is the right to opt for LAMal (Swiss health insurance). Border workers with a G permit are not automatically obliged to join the Swiss LAMal; they can choose to remain enrolled in the Italian National Health Service (continuity of care) or switch to the Swiss system. The choice must be made within 30 days of starting work and is definitive for the employment period. Swiss LAMal franchise rates range from CHF 300 to CHF 2,500 per year, depending on the policy.

Regarding complementary pension insurance (LPP), the Swiss employer is obliged to enroll the border worker in a recognized pension fund. The contribution rate varies by age group: 7% for 25-34 years, 10% for 35-44 years, and up to 18% for over 55 years. These LPP contributions are accumulated in an individual account with the pension fund and constitute the second Swiss pillar (mandatory), distinct from AVS (first pillar) and the 3a pillar (private savings). A border worker in Carnago working in Ticino for two or three decades will accumulate pension rights both in the Swiss AVS system (through contributions paid) and the Italian system (if previously employed or maintaining parallel insurance positions). The two systems ARE NOT automatically coordinated in terms of final pension; the Italy-Switzerland Double Taxation Convention (signed on March 9, 1976) regulates taxation but not pension accumulation.

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

Checklist practice: the essential administrative steps

Step 1: Requesting the G Permit from the cantonal authorities

The procedure does not start in Carnago, but involves the Swiss employer. It is he who must submit the request for the G Permit to the State Secretariat for Migration (SEM) in the competent cantonal section (for Ticino, the SEM has a representation in Bellinzona).

Required documents:

• Original or certified copy of the employment contract
• Municipal residence certificate of Carnago (issued by the Municipality)
• Italian identity document (passport or valid ID card)
• Declaration of stable residence in Italy (SEM form)
• Proof of address in Carnago (bill, rental contract)

The procedure usually takes 2–4 weeks. Once granted, the G Permit is valid for one year and is renewable provided that the employment relationship persists and Italian residence is maintained.

Step 2: Registration with the INPS and notification to the Italian tax office

In parallel, the frontier worker must notify their Italian employer (if they have other activities) and the INPS of their new status as a frontier worker. Although not mandatory by law, this notification avoids inconsistencies in the contribution records. The Italian Revenue Agency receives automatic notification from Switzerland through the bilateral data exchange; however, an explicit notification to the INPS (via the SR163 form or equivalent) accelerates the administrative alignment.

Step 3: Annual tax declaration and May 31 deadline

By May 31 of each year, the frontier worker submits the Italian model 730 or the Unico model (if more convenient, given the foreign income). The declaration must indicate:

• Gross income earned in Ticino (annual amount declared by the employer)
• Tax withheld in Switzerland (detail of monthly withholdings: AVS/AI/IPG, LAINF, LPP)
• Exemption applied: €10,000 for new frontier workers or €7,500 for previous frontier workers (until 2033)
• Credit for tax in the CE framework (equivalent to the Swiss tax, for elimination of double taxation)

The Italian system automatically calculates whether the frontier worker is entitled to a refund (reimbursement) or is due a full tax payment. Refunds are usually settled by summer (June–August) or, if the 730 is submitted via CAF, by the tax agency's liquidation deadline.

Step 4: LAMal coordination and signature of the choice

Within 30 days of the start of the employment relationship, the frontier worker formally notifies their Swiss employer and the insurer of their intention to maintain Italian LAMal (recommended if they have continuity of care with Italian structures) or switch to Swiss LAMal (recommended if they intend to access Ticinese/Swiss care networks). Once chosen, this option is not easily reversible during the same employment contract. It is a decision that must be weighed considering familiarity with public structures and the costs foreseen.

Step 5: Monthly monitoring and tracking of contributions

Use the frontier worker's salary calculator to simulate the monthly net, verify the withholdings applied, and predict the impact on the annual declaration. This tool helps estimate the Italian credit for tax based on Swiss withholdings, predict whether you will receive a refund or a full tax payment, and monitor the accumulation of AVS/LPP rights during the year.

Keep the monthly pay slips and the annual summary provided by the Swiss employer: they serve as supporting documentation during any tax audits. Maintain a copy of the receipt of submission of the Italian 730 and the tax agency's notifications, particularly if they are issued refunds or full tax payments.