Chiasso seeks solutions to hire more residents: what changes for cross-border workers and businesses

Context

TL;DR

• Chiasso seeks tools to boost local hiring by businesses.
• Municipality lacks tax relief tools due to higher-level laws.
• Non-tax measures proposed: training, apprenticeships, and municipal service concessions.

Key facts

• Data: 16 aprile 2026
• Chiasso: Municipio cerca strumenti per incentivare l'assunzione di residenti locali.
• Francesco Romano: Consigliere comunale che ha presentato la domanda formale.
• Misure proposte: Contributi alla formazione, incentivi per apprendisti residenti, misure di integrazione professionale.
• Ostacoli legali: Regolamenti cantonali e federali limitano gli strumenti fiscali selettivi.
• Accordo Italo-Svizzero: Convenzione del 9 marzo 1976 su lavoratori transfrontalieri.
• Settori interessati: Commercio, logistica e servizi.
• Impatto fiscale: Aumento delle entrate fiscali per residenti locali.

On Thursday, April 16, 2026, Chiasso municipal councillor Francesco Romano of HelvEthica Ticino submitted a formal question to the Chiasso Municipal Council urging the search for tools to encourage the hiring of local residents by local businesses. According to Romano, a higher proportion of residents among workers in companies operating in the municipality could strengthen the tax revenue from individuals domiciled in Chiasso while also reinforcing the local economic and social fabric.

In his request, the councillor highlights that the Municipality lacks selective tax relief tools for individual companies based on the number of resident employees, as this area is heavily regulated by higher-level law. Romano therefore asks the Municipal Council to specify which non-tax measures could be concretely implemented to incentivize businesses to prioritize local residents. Among the proposals put forward are municipal contributions to training, incentives for resident apprentices, measures to support professional integration, and concessions on municipal services or fees.

The question also focuses on promoting criteria related to vocational training, apprenticeships, and corporate social responsibility. Finally, Romano asks the Council to identify the main legal, administrative, or financial obstacles currently preventing the Municipality from adopting more effective measures to support local employment.

The regulatory context: what Chiasso can and cannot do

The Chiasso Municipal Council operates within a fairly rigid regulatory framework. As highlighted in the question, federal and cantonal law severely restricts the possibility of using direct fiscal tools to favor local residents. In particular, the Confederation and the Canton do not allow selective tax reductions for individual companies based on the composition of their workforce. This means the Municipality cannot, for example, reduce a company’s tax burden simply because it hires more Ticinese residents.

However, there are leeway on other fronts. According to the source, potential tools available include:

• Municipal contributions to the training of resident employees;
• Economic incentives for companies hiring resident apprentices;
• Measures to support the professional integration of disadvantaged groups;
• Concessions on municipal services, such as the use of public spaces or the granting of building permits;
• Emphasis on corporate social responsibility criteria when awarding subsidies or public contracts.

📊 > The Municipality of Chiasso operates within a regulatory framework that leaves little room for maneuver in terms of fiscal incentives. However, alternative tools—such as training contributions or support for apprenticeships—could provide viable solutions to encourage local hiring.

Key questions for the Municipality

Romano’s question presents the Chiasso Municipal Council with a series of practical issues. In particular, it asks whether any pilot projects have already been launched or are under evaluation to test these tools. Additionally, it seeks to identify any legal obstacles that could hinder the implementation of more effective measures. For example, cantonal or federal regulations might restrict the possibility of providing direct financial contributions to businesses, or there could be constraints related to state aid under EU law.

💡 > The challenge for the Municipality lies in balancing legal constraints with the need to support local employment. Exploring non-fiscal incentives and leveraging existing tools could offer a way forward.

🔍 ⚠️ Further analysis is needed to assess the feasibility of measures such as subsidies for resident apprenticeships or preferential access to municipal services for businesses prioritizing local hiring.

Another critical aspect concerns compatibility with international agreements, particularly the Italo-Swiss Convention of 9 March 1976 on cross-border workers. Any measure favouring local residents could indeed be interpreted as indirect discrimination against workers from Lombardy, further complicating dialogue between Ticinese and Italian institutions.

Border-area businesses: between opportunities and constraints

Chiasso stands as an emblematic case of the cross-border worker phenomenon in Ticino. According to as-yet unspecified data from the source, the municipality hosts a significant number of businesses employing workers from both sides of the border. Most of these companies operate in sectors such as trade, logistics and services, where the flexibility of cross-border workers often proves crucial for competitiveness.

The issue of hiring local residents is therefore intertwined with a series of structural challenges. On one hand, businesses rely on the availability of skilled and flexible labour, which cross-border workers often provide. On the other, local demand for labour remains high, especially in a context of demographic ageing and moderate economic growth.

What does cantonal law say?

As with other Swiss cantons, Ticino is subject to cantonal and federal regulations governing employment and taxation. In the specific case of Chiasso, the Canton of Ticino has issued several laws and regulations aimed at promoting local employment. However, these tools are often generic and do not target individual municipalities. For example, the canton promotes vocational training programmes and apprenticeship incentives, but these do not include mechanisms for direct preference for residents at the hiring stage.

The role of social partners

Romano’s question also highlights the role of social partners in the process of promoting local employment. Trade unions and employers' associations could be involved in defining corporate social responsibility criteria, for instance through sectoral agreements that set a minimum quota for local hires. However, the source does not mention any concrete initiatives of this kind currently underway in Chiasso.

In summary, the Municipality of Chiasso faces a complex question: how to reconcile the promotion of local employment with the flexibility needs of border-area businesses, without violating national and international regulations?

Operational details

Francesco Romano’s query to the Chiasso municipal council has sparked a debate on how local policies can shape employment dynamics in a border region like the Mendrisiotto. For cross-border workers living in Lombardy and employed in Chiasso, the issue holds particular significance, as any shift in hiring preferences by local businesses could directly impact their job security.

Scenario 1: What happens if businesses prefer local residents?

Currently, no official data quantifies the number of cross-border workers employed in Chiasso compared to Ticinese residents. However, it is well-documented that cross-border commuting is a significant phenomenon in southern Ticino, especially in municipalities along the border with Lombardy. If local businesses were to prioritize hiring residents, cross-border workers could face a disadvantage, particularly in sectors where labor demand is not high.

For instance, in retail or hospitality, Ticinese residents might be preferred for permanent positions, while cross-border workers could be hired for part-time or temporary roles. This scenario would reduce demand for cross-border labor, with direct consequences for thousands of Lombard families that rely on Swiss salaries for their livelihood.

⚠️ A note on terminology: The term G permit refers to the cross-border worker permit issued under the Agreement on the Free Movement of Persons between Switzerland and the EU.

Scenario 2: Impact on tax revenue and local welfare

According to Romano, increased employment of residents in Chiasso would boost tax revenue from individuals domiciled in the municipality. However, this claim requires context. Personal income tax revenue is determined by tax residency, not local employment. A cross-border worker employed in Chiasso but residing in Italy pays taxes in Italy, not Switzerland. Therefore, incentivizing the hiring of residents would not directly increase municipal tax revenue unless those workers also transfer their tax residency to Ticino.

On the other hand, greater local employment could ease pressure on social and public services, as fewer residents would rely on state subsidies. However, the source provides no data on this aspect, making it difficult to assess the potential benefits.

Non-tax tools: What Chiasso could actually do

Despite regulatory constraints, the Municipality of Chiasso could adopt concrete measures to encourage the hiring of residents. These include:

• Contributions to professional training: The municipal council could fund targeted training courses for residents, in collaboration with SUPSI or other Ticinese institutions. These courses could focus on skills in high demand among local businesses, such as logistics or service sectors.

• Incentives for resident apprentices: A system of bonuses for businesses that hire resident apprentices could be implemented, for example, in the form of subsidies for apprenticeship costs or reductions in municipal taxes.

• Promoting corporate social responsibility: The Municipality could introduce social responsibility criteria in public procurement tenders, rewarding companies that demonstrate a significant commitment to hiring residents. This approach, already tested in some Swiss cantons, could be adapted to the local context.

📊 Key takeaway: Policies aimed at boosting local employment must balance fairness with economic reality, ensuring that cross-border workers are not disproportionately affected by shifts in hiring practices.

• Benefits for municipal services: Businesses hiring local residents could benefit from discounts on fees for the use of public spaces, such as exhibition areas or event venues. Additionally, concessions may be introduced for construction permits, where the hiring of local residents is part of an entrepreneurial project.

The administrative and legal challenges

Implementing these measures is not without obstacles. First, the Municipality would need to verify compliance with cantonal and federal regulations, particularly those concerning state aid. The Swiss Confederation and the Canton of Ticino could oppose direct financial support to businesses, as such measures might be deemed distortions of competition.

Second, any policy favoring local residents could face challenges under EU law. The Italo-Swiss Convention of 9 March 1976 does not explicitly prohibit local employment promotion policies, but its interpretation could spark controversy. Cross-border workers might file complaints against any indirect discrimination, for example if businesses were incentivized to prioritize local residents for certain jobs.

📊 Legal risks: Any measure favoring residents over cross-border workers could trigger legal disputes under Swiss and EU regulations.

The case of other border cities: what's happening in Lugano or Bellinzona?

Chiasso is not the only Ticinese municipality addressing the issue of local employment. Similar discussions are underway in Lugano and Bellinzona, albeit in different forms. In Lugano, for instance, the Municipal Council has launched training programs for local residents in collaboration with local businesses, while Bellinzona has introduced social responsibility criteria in public procurement tenders.

However, the lack of concrete data on the composition of the workforce makes it difficult to assess the effectiveness of these measures. The source does not provide direct comparisons between different Ticinese municipalities, but it is clear that the topic of local employment is a priority across the entire canton.

💡 Key takeaway: While policies vary, the focus on local hiring is a shared concern among Ticinese municipalities.

What impact on cross-border workers?

For cross-border workers living in Lombardy and working in Chiasso, Romano’s inquiry could signal a shift in policy. If the Municipality adopts concrete measures to favor local residents, businesses might be encouraged to prioritize Ticinese workers, especially in sectors with high labor demand.

However, any changes would likely have a gradual impact. Businesses cannot dismiss previously hired cross-border workers without violating Swiss labor laws, which protect employees regardless of nationality. The most probable outcome would be a reduction in new hires for cross-border workers rather than an immediate replacement of those already employed.

📊 Uncertainty remains: Without concrete data, it is impossible to predict the scale of this phenomenon. For example, it is unclear how many businesses in Chiasso predominantly employ cross-border workers or which sectors would be most affected by changes in hiring policies.

⚠️ Potential consequences: While gradual, policy shifts favoring local residents could reduce opportunities for cross-border workers in the long term.

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Key points

The Municipality of Chiasso will now have to respond to the question submitted by Francesco Romano, providing a clear overview of the non-tax tools that could be adopted to incentivize the hiring of local residents. But what concrete actions can cross-border workers and companies take today, while awaiting an official response?

Step 1: Verify tax residency and hiring requirements

First and foremost, it is essential to clarify one’s tax status. Cross-border workers living in Lombardy but working in Chiasso are required to declare their income in Italy, unless specific exemptions apply under the Italo-Swiss Convention of 9 March 1976. However, if a worker is fiscally resident in Ticino, taxes will be withheld in Switzerland. This aspect is crucial, as a change in residency could impact the competitiveness of Ticinese companies in recruiting local workers.

For companies, it is important to review the current hiring criteria and check whether any cantonal programs exist to incentivize the hiring of local residents. For example, the Canton of Ticino promotes apprenticeships as a tool to train young residents, offering contributions to companies that participate in these programs.

Step 2: Explore training and apprenticeship opportunities

Even in the absence of definitive responses from the Municipality of Chiasso, companies and residents can already benefit from existing tools. SUPSI (University of Applied Sciences and Arts of Italian Switzerland) and USI (University of Italian Switzerland) offer professional training courses in various sectors, including logistics, services, and commerce. These institutions often collaborate with local companies to develop training paths tailored to market needs.

For residents seeking employment, the State Secretariat for Education, Research and Innovation (SERI) provides information on apprenticeship and internship opportunities. Additionally, the Department of Economy and Education (DFE) of the Canton of Ticino promotes professional reintegration programs for disadvantaged groups, such as long-term unemployed individuals or people with disabilities.

Step 3: Monitor municipal and cantonal initiatives

The Municipality of Chiasso may launch pilot projects in the coming months to incentivize the hiring of local residents. It is therefore essential to stay updated on official communications from the Municipality by regularly checking the institutional website or announcements published in the Official Cantonal Gazette. Similarly, the Canton of Ticino could introduce new regional incentives in collaboration with social partners.

An example of an existing initiative is the 'Ticino Lavoro' program, managed by the DFE, which offers free consulting services to companies for recruiting local staff. This service could be expanded in the coming months, especially if the issue of local employment gains further political relevance.

Step 4: Evaluate municipal service benefits

If the Municipality of Chiasso were to introduce benefits on municipal services for companies that hire local residents, these could include discounts on:

• The use of public spaces for company events;
• The granting of construction permits;
• Participation in public tenders.

📊 Key considerations for cross-border workers and companies:

• Verify tax residency status to avoid double taxation or compliance issues.
• Explore cantonal programs like apprenticeships to align with local workforce development.
• Stay informed about municipal and cantonal initiatives that may introduce new incentives.

These incentives, if implemented, could offer concrete benefits to companies that choose to prioritize local residents. However, as of the time of writing, the specifics of these potential measures have not yet been finalized.

Step 5: Engaging social partners for support

Trade unions and employers' associations could play a pivotal role in facilitating dialogue between businesses and local residents. For example, the Swiss Federation for Apprenticeship (FSEA) or the Ticino Union of SMEs (UTP) could promote sectoral agreements that include minimum quotas for hiring local workers. While these agreements would be voluntary, they could be highly effective in fostering a culture of local employment.

⚠️ Key takeaway: Social partners can act as intermediaries to balance the needs of businesses and residents.

What to do if you're a cross-border worker and fear for your job?

Cross-border workers employed in Chiasso may wonder if they are at risk of being replaced by local Ticino residents. It's important to clarify that, under Swiss law, nationality cannot be a selection criterion for hiring, except in very specific cases permitted by law. Therefore, companies cannot dismiss cross-border workers to hire locals without an objective justification, such as cost reduction or company reorganization.

Nevertheless, it is advisable to closely monitor local job opportunities and assess potential training programs to enhance your competitiveness. Additionally, maintaining a strong relationship with your employer—demonstrating flexibility and willingness to align with company policies—can be beneficial.

💡 Pro tip: Proactivity and adaptability are key to securing your position in a competitive job market.

Useful tools for staying informed

For residents and businesses looking to stay updated on developments, the Canton of Ticino’s website offers several resources:

• Job search platform: to browse available job listings and assess demand for local workers in various sectors;
• Company directory: to find contact details for local businesses and explore collaboration opportunities;
• Cost of living calculator: to estimate the additional expenses associated with working and living in Ticino.

Conclusions and next steps

Francesco Romano’s inquiry to the Municipality of Chiasso represents an attempt to address one of the most sensitive issues for a border town: how to balance the needs of businesses with those of the local population. The Municipality’s response will be closely watched, as it could set the guidelines for future local employment policies in the Mendrisiotto region.

In the meantime, both businesses and residents can already leverage existing tools to improve their positions in the job market. Whether through training, apprenticeships, or municipal incentives, the key will be to stay informed and proactive.

For any questions or need for support, the Frontaliere Ticino team remains available with practical guides and tools to help navigate the complexities of cross-border work.

📊 Stay ahead: Knowledge is power—use the right resources to stay competitive.

Source: laregione.ch