Garzeno border: cost and tax guide 2024

Context

In a nutshell

• The New Frontier Agreement comes into force from 1 January 2024 with new tax rules.
• For Article 9 of the Agreement, “old frontier workers” are people who met the tax requirements and worked in Graubünden, Ticino or Valais on 17 July 2023 or during the period from 31 December 2018 through 17 July 2023. Article 9 keeps covered employment income taxable exclusively at source in Switzerland; other workers follow the ordinary regime, with ordinary taxation in Italy, a credit for Swiss tax and Swiss withholding at 80% of the ordinary rates. The €10,000 figure in Article 4 of Italian Law No. 83/2023 is only the income limit referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance for new frontier workers. Sources: ESTV factsheet (Italian) · Agreement, Art. 9 · Law No. 83/2023, Art. 4.
• Tax at source withheld in Switzerland.
• Permit G allows you to live in Italy and work legally in Ticino.

Key facts

• What: New Frontier Agreement between Italy and Switzerland on taxation and social rights
• When: Signed 23 December 2020, ratified Italy (Law 83, 13 June 2023), effective from 1 January 2024
• Where: Frontalieri province Como (Garzeno) towards Canton Ticino
• The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013.
• The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013.
• Tax: Withheld from Switzerland, recoverable in Italy through declaration 730 (EC framework)
• Permit: Document G for Italian residence and Swiss work

From 1 January 2024, the New Frontier Agreement between Italy and Switzerland has redesigned the tax rules for those who live in Garzeno and work in Ticino. The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).

A fundamental aspect for those who reside in

Operational details

How does taxation change from 2024

The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. Everything you earn above this threshold is subject to the ordinary withholding tax regime administered by the AFC (Federal Tax Administration) and the cantonal tax authorities of Ticino.

The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. The Swiss withholding tax is applied to these €40,000, which varies depending on the canton of Ticino and personal circumstances (marital status, number of children, mortgage expenses, etc.). The withholding tax rate is not fixed; it depends on individual parameters and is recalculated each year by the employer or notified by the cantonal tax office. The cross-border commuter receives a certificate with the total amount paid (the withholding tax certificate), which is then declared in the Italian model 730 to obtain the tax credit and possible refund.

The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013.

Health insurance, AVS, and LPP: social rights

An often overlooked aspect is health insurance. Cross-border commuters have the right to choose between Swiss health insurance (LAMal) and Italian health insurance (SSN system, with coverage in Switzerland through the EHIC card). Those living in Garzeno and working in Ticino can opt for LAMal, which provides coverage in Switzerland with adult deductibles ranging from CHF 300 to CHF 2,500 annually, depending on the chosen policy.

In addition to LAMal, the cross-border commuter contributes to the AVS/AI system (Swiss social security) with a rate of 5.3% on the salary as an employee, plus an employer contribution. These contributions count towards the Swiss pension (first pillar). If the employer is affiliated with an LPP fund (second pillar), the cross-border commuter also contributes to this with rates ranging from 7 to 18% depending on the age group (from 25 years). In addition to the mandatory contributions, the cross-border commuter can subscribe to additional pension forms (third pillar 3a). These deadlines, percentages, and administration are managed by the AFC at the federal level and the cantonal tax authorities of Ticino. For specifics on calculating your position, you can consult the salary calculator that integrates the 2024 scenarios.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Step-by-step procedure: how to start as a commuter Garzeno-Ticino

If you are considering moving your residence to Garzeno while keeping a job in Ticino, here are the concrete steps:

1. Sign a work contract with a Ticino company. The employer must be willing to sponsor your G Permit application with the SEM (State Secretariat for Migration). Verify the contract especially for tax aspects: where the withholding tax is calculated (usually by the employer or the Ticino cantonal tax office), and if the AVS/AI/IPG (5.3% employee) and LAINF (0.7-1.5%) contributions are deducted.

2. Apply for the G Permit at the Ticino cantonal immigration office. You will need: a valid passport, an original signed work contract, proof of residence in Garzeno (utility bills, lease, registry office registration), and a certificate of no criminal record. The process takes an average of 1-3 months.

3. Register with the Garzeno municipality as an Italian resident and notify the Italian Revenue Agency of the change of residence. This is necessary to correctly receive the 730 form and the CUD (Unique Employee Certificate) from the Swiss employer.

4. Choose health insurance. If you opt for the Swiss LAMal, sign up with a recognized insurer in Ticino (e.g., CSS, Helsana, Groupe Mutuel). If you prefer the Italian SSN system with cross-border coverage (EHIC), notify your employer. For details on LAMal, consult our health insurance comparator.

5. Verify with the AFC or the Ticino cantonal tax office how the withholding tax is calculated on your pay slip. Request an information sheet (usually free) with the federal, cantonal, and municipal rates that will apply to your situation (marital status, number of children, expenses).

Practical Tools and Resources

To calculate your net monthly income (gross minus withholding tax, AVS/LPP contributions, insurance) in advance, you can use the salary calculator of Frontaliere Ticino, which integrates the 2024 rates of the New Agreement and Swiss social contributions according to AFC regulations.

Another useful resource is to consult the official AFC website (afc.admin.ch) to download the brochure on Italian commuters in Switzerland, or contact the Ticino cantonal tax office (administrative headquarters in Bellinzona) for specific situations. A tax advisor is not necessary for simple employment cases, but it is recommended for self-employment income or complex investments.

Finally, if you are considering a permanent move to Garzeno, use the cost of living comparator Ticino-Italy to understand how much more or less you will spend on housing, food, transportation, and services compared to the area where you work in Ticino. Also consider commuting costs (fuel, vehicle wear, insurance, parking, tolls) in your monthly budget. For in-depth information on pension aspects and coordination between the Swiss and Italian systems, consult our pension calculator.