Cerano d 'Intelvi: living and working in Ticino (cross-border guide)

Context

In a nutshell

• Tax at source withheld only in Switzerland, refund via Italian declaration 730
• New agreement 2024: deductible €10,000 new frontier workers, €7,500 old (until 2033)
• Mandatory G permit, requested by the Ticino employer through SECO
• AVS 5.3% + LPP 7-18%: automatic pension costs, mandatory social security contributions

Key facts

• What: Tax regime, permits and social insurance for border workers CH-IT
• When: New agreement in force from 1 January 2024 (signed 23 December 2020)
• Where: Valle d 'Intelvi (Como) → Canton of Ticino, CH-Italy border
• Who: Frontier workers with G permit
• Excess 2024: €10,000 (new), €7,500 (old until 2033)
• Tax at source: 0-3% approx. Ticino (range CHF 148'200), EC framework income tax credit
• LAMal: Right of option, deductible CHF 300–2500
• AVS/AI/IPG: 5.3% mandatory; LPP 7-18% by age group from 25th year

Cerano d 'Intelvi is one of the main municipalities of the Valle d 'Intelvi, in the province of Como, where several thousand border workers choose to live to work in the offices, hospitals, factories and companies of the Canton of Ticino. The decision to move from an Italian resident to a Swiss commuter has concrete implications for taxation, permits, social insurance and economic planning. From 1 January 2024, with the entry into force of the new bilateral agreement between Italy and Switzerland signed on 23 December 2020, the rules on deductions,

Operational details

Border taxation: tax at source and tax credit

For the Italian border worker working in Ticino, taxation is the pillar of annual economic planning. Tax at source is ONLY withheld in Switzerland, not in Italy. This means that the gross salary declared by the Ticino employer is subject to Swiss withholding tax directly on the paycheck every month. Italy, by virtue of the Convention to avoid double taxation signed on December 9, 1976, recognizes a tax credit to the border worker when he declares income in the EC framework of form 730 (annual income tax return).

The amount of the Swiss withholding tax depends on the gross income bracket. Up to CHF 148'200, the federal and cantonal rate varies indicatively from 0% to 3%, with tiers increasing progressively as wages grow. Above CHF 148'200, the applied rates are significantly higher. In addition to the source tax, the border worker automatically pays these social and social security contributions:

• AVS/AI/IPG: 5.3% of salary (old-age insurance, disability, unemployment benefits)
• AD/AC: 1.1% (unemployment insurance, integration benefits), capped at CHF 148'200
• LAINF: 0.7–1.5% (accident insurance)
• LPP: 7–18% depending on age (second pension pillar, mandatory from 25 years)

These amounts are deducted from the payroll

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

Permit G: how to obtain and renew it

The first administrative step towards life as a cross-border commuter is obtaining the Permit G. Contrary to what many believe, the commuter does NOT apply for the permit directly: it is the Ticino-based employer who sends a formal authorization request to the SECO (State Secretariat for Economic Affairs) of Canton Ticino. Once SECO approves the request, the permit notification is sent to both the employer and the employee. Permit G is valid for 5 years and is easily renewable upon expiration if employment continues. It involves no costs for the employee and allows them to work legally in Ticino while residing in Italy (Cerano d'Intelvi or other municipalities in the Intelvi Valley).

Tax return: calendar, forms, and annual procedure

Every year, the Italian cross-border commuter must submit their tax return to the Italian Revenue Agency (Agenzia delle Entrate). The deadline is November 30 for the income of the previous calendar year. In the tax return (model 730 or model Redditi PF), they must obligatorily indicate:

• Gross employment income earned in Ticino
• Withholding tax paid in Switzerland (documented by the year-end payslip extract)
• Request for tax credit under Section CE (quadro CE)

The Revenue Agency processes the data, calculates the Italian personal income tax (IRPEF) by applying tax brackets and the tax credit, and applies the allowance provided for by the new agreement. If a refund is due, it is paid to the IBAN provided by the taxpayer within 4-6 months of processing the paperwork.

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