Crodo: guide for border workers working in Ticino

Context

In brief

• As of January 1, 2024, the new tax agreement is in effect: old cross-border workers are exempt €7,500/year, new ones €10,000 in allowance
• Crodo (VB, Piedmont) offers a lower cost of living than Ticino but maintains quick access to border crossings (Brogeda, Gaggiolo)
• Withholding tax is paid only in Switzerland; Italy grants tax credit via the CE section of the 730 form
• LAMal in G regime: choice between Swiss insurance (CHF 300–2,500 deductible) or Italian INPS

Key facts

• What: Living in Crodo (Verbano-Cusio-Ossola, Piedmont) and working in Canton Ticino with a G permit
• When: New agreement effective from January 1, 2024
• Where: Crodo ↔ Brogeda/Gaggiolo/Chiasso border crossings towards Ticino centers (Lugano, Mendrisio, Bellinzona)
• Who: Cross-border workers with a G permit and interested in moving residence
• Amount: Exemption €7,500 (old cross-border workers) or allowance €10,000 (new), transitional regime 2024–2033

Crodo is becoming an increasingly popular choice among workers who want to obtain a G permit to work in Ticino while maintaining a residence in Piedmont. The town, located in the province of Verbano-Cusio-Ossola, offers a concrete balance between lower housing costs compared to Canton Ticino and geographical proximity that reduces commuting times to the main Ticino work centers (Lugano, Mendrisio, Chiasso, Bellinzona, Locarno).

The entry into force of the new Switzerland-Italy tax agreement on January 1, 2024 (signed on December 23, 2020, and ratified by Italy with Law 83 of June 13, 2023) has introduced significant measures for cross-border workers. Cross-border workers already registered before July 17, 2023, enjoy a tax exemption of €7,500 annually in a transitional regime until 2033, while new cross-border workers benefit from an allowance of €10,000. These thresholds represent a structural incentive for those considering moving to Crodo from other Italian centers.

Geographical position and connections to Ticino

Crodo is strategically located with respect to the main border crossings to Canton Ticino. The border can be reached via Gaggiolo (state road), Brogeda, or further south through connections to Chiasso and Mendrisio. Compared to more inland Piedmont settlements (Turin, Novara, Vercelli), Crodo offers significantly shorter travel times to the offices and construction sites of Lugano, Mendrisio, and the Luganese. For cross-border workers who work in companies based in Bellinzona or Locarno, commuting remains manageable: the A2 and A9 highways, although subject to traffic variability during peak hours, ensure regular connectivity.

Operational details

Taxation: withholding tax, double taxation and refunds

For a cross-border worker living in Crodo and working in Ticino, the withholding tax is exclusively deducted in Switzerland on the pay slip. There is no immediate double taxation: Italy does not levy further on the gross amount but allows a tax credit through the CE section of the tax return (model 730 or model Unico). This mechanism is governed by the Italo-Swiss Convention on Double Taxation signed on March 9, 1976, which ensures stable legal protection.

The withholding tax rate applied by Switzerland varies according to the canton and individual incomes: in Ticino, the combined federal and cantonal rates are administered by the Federal Tax Administration (FTA/ESTV). The tax return in Italy allows for the recovery of excess taxation if the Swiss rate is higher than the Italian one (IRPEF: 23% up to €28,000, 33% from €28,001 to €50,000, 43% over €50,000).

Refunds are the concrete mechanism for returning overpaid taxes. If a cross-border worker pays more tax in Switzerland than due in Italy (for income declared in both countries), the tax credit in the 730 ensures the refund of the difference. The deadline for submitting the declaration in Italy is by May, allowing an annual verification of the overall tax position.

AVS, LPP, LAMal: the three pillars of social security and health

Enrollment in AVS (Old-Age and Survivors' Insurance) is mandatory for any cross-border worker employed in Switzerland. The AVS/AI/IPG contribution rate for the employee is 5.3%, to which AD (unemployment insurance) 1.1% and AC (accident insurance) up to 1.5% depending on the sector are added. The maximum income limit for AD/AC calculation is CHF 148,200 per year.

The LPP (Professional Pension Fund — second pillar) is also mandatory. The employee contribution ranges from 7% to 18% depending on the age group starting from 25 years. This amount is paid directly by the employer to the registered foundation, ensuring a capital accumulation for future pension benefits.

The LAMal (Health Insurance) is not included in the Swiss pay slip: the cross-border worker in the G regime has the option to insure in Switzerland or Italy. If they choose Switzerland, they must subscribe to a private policy with a Ticino (or Swiss) health insurance company, with adult deductibles from CHF 300 to CHF 2,500 annually, plus a variable monthly premium based on age and canton of residence. If they choose to stay with the Italian system (INPS), they remain subject to Italian contributions but with INPS-SSN coverage.

Cost of living: where it is cheaper to live

The cost of living in Crodo is significantly lower compared to the main centers of Ticino (Lugano, Locarno, Bellinzona). Rent, food, utilities, and fuel are generally more affordable in Piedmont compared to Swiss cantonal averages. However, it is important to consider commuting costs: fuel, car maintenance, vehicle insurance, and the vignette (mandatory for driving in Switzerland) reduce the overall cost advantage. For those using public transport (regional trains, cross-border buses), the cost of a cross-border subscription represents a significant item in the monthly budget.

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

How to organize: step-by-step towards the transfer

Before moving to Crodo, some administrative steps are essential and must be followed in sequence:

1. Verify the G permit: this is the basic requirement for cross-border workers. It must be requested by the Swiss employer in coordination with the cantonal authorities (Migration Section of the Canton Ticino, SECO). The permit is linked to the specific employment contract and requires a formal procedure with the municipality of Crodo and the Italian prefecture.

2. Italian tax registration: once a resident of Crodo, register with the Agenzia delle Entrate of the competent district. Notify the change of residence to the municipality of Crodo to update the registry.

3. Health insurance choice (LAMal): within the registration deadline for the first job in Switzerland, decide whether to opt for Swiss LAMal (with a Ticino health insurance fund) or remain in the Italian INPS system. The choice is not reversible without reasons recognized by the authorities.

4. Open a bank account: not always mandatory, but useful to have an account in Switzerland for receiving the salary without currency commissions. Alternatively, an Italian account with an IBAN compatible with CHF-EUR cross-border transfers works just as well, with attention to the exchange rate.

5. Italian tax declaration (730/Unico): each year, by May, complete the declaration including the gross Swiss income, the withholding tax already paid by Switzerland, and the tax credit in the CE section. This allows the recovery of overpaid amounts and the documentation of residence in Italy for tax purposes.

Evaluate concrete advantages and disadvantages

Main advantages: lower cost of living than Ticino (about 15–25% savings on rent and consumer goods), tax exemption up to €7,500 annually for old cross-border workers according to the new 2024 agreement, quick access to border crossings (Brogeda, Gaggiolo) with short travel times, a stable Italian community that facilitates social integration and access to Italian services. The Italian-Swiss Convention of March 9, 1976 guarantees normative protection against double taxation.

Real disadvantages: daily commuting (gasoline, car wear, time spent in the car), LAMal costs if the Swiss regime is chosen (about CHF 250–400 monthly depending on age and fund), administrative complexity (double declarations in two countries, tax communications to both states), geographical constraint of the G permit (if you change the Swiss employer, a new permit request is required), limitations of evening entertainment in Crodo compared to the larger urban centers of Ticino.

Practical tools and next steps

Once moved, keeping track of AVS contributions is essential: the Ticino AVS Compensation Fund keeps an automatic record, but it is good to verify your online statement annually (option available through the SECO and AVS portal). Document all payments to ensure recognition of the contribution career for pension purposes.

To calculate the actual tax impact (gross Swiss salary, AVS/LPP/AD/AC deductions, cantonal and federal withholding tax, reallocation in Italy), use the net salary calculator of Frontaliere Ticino: enter the annual gross Swiss income, the canton of work (Ticino), your professional category, and the number of cross-border working days, obtaining an estimate of the net in hand and the Italian 730 simulation.

If you have specific questions about permits, procedures, or deductions, contact the competent authorities directly: SECO (State Secretariat for Economic Affairs) for G permit and AVS contribution issues, Italian Agenzia delle Entrate for the annual declaration and tax credit. The choice to live in Crodo and work in Ticino is realistically feasible: advanced tax and administrative planning is the key to overall success and savings.