Living in Cassano Magnago, working in Ticino

Context

In short

• Cassano Magnago is an ideal border area for working in Ticino
• Withholding tax withheld ONLY in Switzerland (2020 Agreement, effective 1 January 2024)
• Old cross-border workers: exemption €7,500 until 2033; new: excess €10,000

Key facts

• What: Border crossing status between Varese and Ticino
• When: 2020 Agreement, effective from 1 January 2024
• Where: Cassano Magnago (VA) towards Canton Ticino
• Who: Cross-border workers with G permit
• Taxes: IRPEF rates 23–43% AVS contributions 5.3%
• Taxes: Exemption €7,500 (old cross-border workers) or €10,000 (new)

Cassano Magnago, in the province of Varese, is strategic for those who work in Ticino. A few kilometers from passes such as Brogeda and Mendrisio, it represents a common choice among thousands of cross-border commuters. But what exactly does it mean to live here and work in Switzerland?

The new status of cross-border worker is regulated by the New Cross-border Workers Agreement, signed on 23 December 2020 and in force from 1 January 2024. Anyone who resides in Cassano Magnago and has a concrete job offer in Ticino obtains the G Permit from the SEM (Secretariat of State for Migration). This permit is valid for one year and is renewable and allows access to the Swiss job market.

The status of cross-border worker G

The cross-border worker is a worker resident in Italy who works in Switzerland and is subject to Swiss labor legislation. Those who reside in Cassano Magnago and work in Ticino obtain the G Permit from the SEM, subject to the availability of a concrete work position. This permit allows access to the Swiss labor market without labor market tests (except for quota sectors) and is renewable annually.

Taxation: The withholding tax advantage only in Switzerland

A key principle of the 2020 Agreement: withholding tax on wages is withheld exclusively in Switzerland, never in Italy. Switzerland applies the rate to the gross salary and pays it to the Canton of Ticino. Italy avoids double taxation by recognizing the tax credit in the EC part of the tax return (form 730).

For cross-border commuters residing in Cassano Magnago there is an important distinction:

• Old cross-border workers (status before 17 July 2023): exemption up to €7,500 of annual income, in transitional regime until the end of 2033.
• New cross-border workers: deductible of €10,000 of annual income.

Above this threshold, the Swiss rate varies according to the canton and municipality of work. The Italian IRPEF (23% up to €28,000, 33% up to €50,000, 43% above) applies to overall income, but thanks to the tax credit for taxes paid in Switzerland, there is no double taxation.

Social security: AVS and LPP are mandatory

By working in Ticino, you are obliged to contribute to the AVS (old age and survivors insurance). The employee contribution is 5.3% (AVS/AI/IPG) on the gross salary. Similarly, the employer enrolls the worker in the supplementary pension scheme (LPP - second pillar), with variable rates per age group (from 25 years onwards: on average 7-18%).

Operational details

Living in Cassano Magnago: costs, deadlines and tax compliance strategies

If you decide to live in Cassano Magnago and work in Ticino, your Swiss paycheck will be subject to a series of withholdings. Let's assume a simplified scenario: a gross monthly income of CHF 4,500. Here are the typical Swiss withholdings:

Payroll withholdings (estimates):

• AVS/AI/IPG: 5.3%
• Unemployment insurance (AD/AC): 1.1% (cap CHF 148,200)
• Accident insurance (LAINF): 0.7–1.5%
• Tax at source: varies from 0–5% depending on the Ticino municipality
• LPP (second pillar): 7–18% depending on age (employee contribution)

If you are an old or new cross-border worker and earn below the exemption, the Ticino withholding tax is reduced or zero; if you exceed the threshold, Ticino applies a progressive rate.

Italian tax declaration: model 730 with CE framework

At the end of the year, you will have to present the 730 form in Italy (through an accountant or CAF). In the CE framework you will report the taxes paid in Switzerland and request the tax credit. If the Swiss tax is higher than the Italian tax due, you will receive a refund; if less, you will have to pay the difference.

The Revenue Agency and the MEF (Ministry of Economy and Finance) check the data of cross-border workers by cross-referencing them with communications from SECO (State Secretariat of the Swiss Economy) and with INPS data.

Health insurance (KVG): right of option for cross-border commuters G

Cross-border workers with G Permit have the right to choose health insurance. They can choose to take out a KVG policy (Swiss health insurance) or to remain in the Italian system (with INPS registration as a worker). The choice must be made consciously: the KVG offers broad coverage in Switzerland (deductibles from CHF 300 to CHF 2,500 for adults) and in the EU through CESD. The Italian system has different coverage and may require additions.

Crucial deadlines for those living in Cassano Magnago

• By March 31st: Submission of tax return (form 730 or Unico) to the Revenue Agency
• By January 31st: Payment of any additional municipal and regional tax
• By June 30th: Renewal of Permit G at the SEM
• Annual: Possible voluntary payment of INPS contributions for social security integration

January 1, 2024, when the 2020 Agreement came into force, marked a significant regulatory change. Cross-border workers resident in Cassano Magnago who were already such before 17 July 2023 benefit from the €7,500 exemption under the transitional regime. New cross-border workers benefit from the €10,000 exemption.

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

Practical guide: how to become a cross-border worker from Cassano Magnago

If you want to move to Cassano Magnago and start working in Ticino as a cross-border worker, follow these concrete steps.

Step 1: Find a job offer in Ticino

The G Permit requires a Swiss employer willing to hire you. You can consult job advertisements in Ticino via jobs or through regional Ticino agencies. The employer will be responsible for requesting the permit from the SEM on your behalf.

Step 2: Registration and permission

Once the offer has been received, the employer sends the request to the SEM (State Secretariat for Migration). You, on the Italian side, must register with the municipality of Cassano Magnago as a resident and present a residence certificate. The SEM examines the request and, if suitable, issues the G Permit. Times vary (usually 4-8 weeks).

Step 3: Opening of bank account and direct debit of salary

Open a bank account at a Swiss bank (the employer can indicate affiliated institutions) or at an Italian bank that offers services for cross-border commuters. Notify the employer of the IBAN for direct debit of the salary. Consider opening a secondary account to handle CHF payments if your bank doesn't offer integrated exchange services.

Step 4: AVS registration and health insurance

The employer ensures registration with the competent Swiss bodies. You must decide whether to subscribe to the Swiss KVG or remain in the Italian system. The choice must be communicated within 14 days of starting the job.

Step 5: Annual tax filing and compliance

Every year, by March 31st, present the 730 form at an Italian CAF or accountant. Include the CE table with the Swiss taxes paid (the employer provides the withholding certificate). Pay any additional charges by January 31st. Renew your G Permit at the SEM by June each year.

To help you calculate your net salary and estimated taxes, use calcolatore di busta paga. If you have any doubts about AVS or LPP, consult the simulatore di previdenza. To compare living costs between Cassano Magnago and Ticino, access comparatore costi.