Living in Cirimido, working in Ticino: border guide (cross-border guide)

Context

In brief

• Cirimido is located just 1–7 km from the border crossings towards Ticino (Brogeda, Gaggiolo)
• A Permit G is required to work in Ticino, mandatory for cross-border workers
• Withholding tax is retained in Switzerland; double taxation is avoided through the Convention
• New Agreement (effective January 1, 2024): €10,000 exemption (new) or €7,500 (existing)

Key Facts

• What: Living as a cross-border worker in Cirimido and working in Canton Ticino
• Where: Cirimido (Lombardy, Como) borders Ticino; border crossings Brogeda, Gaggiolo, Chiasso, Ponte Tresa
• Permit: Permit G (cross-border workers) mandatory, renewable annually
• Taxation: Withholding tax retained only in Switzerland; tax credit in Italy
• Agreement: New Cross-Border Workers Agreement signed December 23, 2020, effective January 1, 2024
• Rates: AVS/AI/IPG 5.3% (employee), LPP 7–18% per age bracket (from age 25), LAMal exemption CHF 300–2500

Cirimido offers an interesting opportunity for those who want to work in Switzerland while maintaining Italian cost of living. Just a few kilometers from the border with Canton Ticino, this Lombard municipality is home to thousands of cross-border workers who cross into Mendrisio, Lugano, Bellinzona, and other Ticino cities every day. The economic advantage is real — housing, fuel, and food cost less than in Ticino — but this choice requires administrative preparation and a clear understanding of tax and social security regulations. This article explains how to live and work as a cross-border worker in Cirimido, what makes sense, what it costs, which documents you need, and how to navigate the Swiss-Italian system.

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Operational details

Taxation: the Italy-Switzerland border worker system

Taxation of border workers is governed by two main agreements: the Convention between Italy and Switzerland, signed on December 9, 1976, which prevents double taxation; and the New Border Worker Agreement, signed on December 23, 2020 and entering into force on January 1, 2024, which has modernized the taxation regime. The cardinal principle is that the tax on the source of labor income is withheld solely in Switzerland, never in Italy. On the border worker's Swiss pay slip, a line item for "Source tax" withheld by the employer will appear. In Italy, double taxation is avoided through a tax credit: in the Italian tax return (model 730 for employees or Redditi for self-employed), the Swiss income is entered in schedule CE, and the Italian tax authority recognizes a credit for taxes paid in Switzerland, normally resulting in a refund.

Exemptions: how tax charges change

The New Agreement established two different regimes depending on the employment start date:

• Former border workers (already in status before July 17, 2023): exemption of €7,500 on annual gross taxable income, with transitional regime valid until the end of 2033.
• New border workers (hired from July 17, 2023 onwards): exemption of €10,000 on annual gross taxable income, permanent.

The exemption reduces the amount on which to calculate the Swiss source tax. Example: a new border worker with annual gross income of CHF 60,000 deducts CHF 10,000, leaving CHF 50,000 taxable in Switzerland. The source tax is calculated on CHF 50,000, not CHF 60,000.

Social Security: AHV, IV, BVG, unemployment

Border workers are obligated to contribute to the Swiss social security system. The contribution rates on salaries (employee portion) are:

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Key points

Checklist: practical preparation for relocation

Before relocating to Cirimido as a cross-border worker, it is essential to complete a series of formalities. Here is the recommended order:

1. Sign an employment contract in Switzerland The first step is to find an employer in Ticino (or elsewhere in Switzerland) and obtain a written job offer. Without it, Permit G is not issued.

2. Request Permit G through your employer The Swiss employer fills out the application form and sends it to Canton Ticino (SEM). Processing takes 3–4 weeks. Once approved, the cross-border worker receives the document valid for 12 months, automatically renewable.

3. Notify INPS of the start of employment INPS must be informed of the start of employment in Switzerland. This notification is important to avoid contribution penalties and to ensure that Swiss contributions are properly tracked in the Italian social security system.

4. Choose health coverage Within 3 months of hiring, the cross-border worker decides whether to subscribe to Swiss LAMal or maintain Italian health insurance. If choosing LAMal, they request enrollment through their employer. If remaining with Italian insurance, they communicate the new address to their current insurer.

5. Open a bank account (optional but recommended) Many cross-border workers maintain Italian accounts and exchange CHF/EUR through banks or online services (costs and rates vary). Others open Swiss accounts to receive payment directly in CHF. Check exchange commissions and account maintenance fees.

6. Prepare tax documentation Keep all Swiss tax documentation from your employer (tax certificate, Quittung or equivalent). It is essential for completing the Italian 730 tax return with the tax credit in section CE.

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