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

Context

In a nutshell

• New border agreement in force from 1 January 2024 changes taxation and exemption
• Permit G allows work in Ticino with residence in Giussano (Como)
• Withholding tax withheld in Switzerland, refunds by Italian declaration
• Mandatory LAMal with excess CHF 300-2500 for adults

Key facts

• What: Cross-border work in Giussano-Ticino with Italian/Swiss taxation
• When: From 1 January 2024 (new agreement)
• Where: Como (Giussano) → Ticino (Lugano, Bellinzona, Locarno)
• Who: Cross-border commuters with G permit (EU/EFTA citizens)
• Taxation CH: Withholding tax withheld in Switzerland
• IT taxation: personal income tax with tax credit (EC framework 730)
• Protection: AVS/AI/IPG 5.3% + AD/AC 1.1% + LAMal

From 1 January 2024, the new tax agreement between Italy and Switzerland has renewed the rules for those who reside in Giussano or in the municipalities of Comasco and work in Ticino. Thanks to the G (border) permit, it is possible to work regularly in the Canton of Ticino while maintaining residence in Italy, with taxation taking place mainly in Switzerland. The tax at source is withheld directly by the Ticino employer, while Italy recognizes a tax credit through the EC framework of declaration 730. This double regime, administered by the Italian-Swiss Convention of 9 December 1976, offers protection against double taxation thanks to the credit mechanism rather than exemption.

For those who choose to move to

Operational details

Taxation: How the Double System Works

The peculiarity of the cross-border worker lies in the double tax regime. In Switzerland, the employer withholds the withholding tax directly from the salary. The Swiss social contribution rates are:

• AVS/AI/IPG: 5.3% (employee's share)
• AD/AC: 1.1% (on income up to CHF 148,200)
• LAINF: 0.7–1.5% (accident insurance)
• LPP: 7–18% depending on age class (from 25 years onwards)

Approximate total: 14–25% of gross, variable by age and seniority.

In Italy, the cross-border worker is subject to IRPEF with progressive rates: 23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000. But Italy recognizes a tax credit in the CE section of the 730 declaration, so if Switzerland has already withheld taxes, the cross-border worker does not pay a second tax. It is a credit mechanism, not an exemption: if Switzerland has withheld little, Italy completes; if it has withheld much, the cross-border worker gets a refund.

New 2024 Agreement: Exemptions and Allowances

From January 1, 2024, the new agreement provides:

• Old cross-border workers (already such before July 17, 2023): exemption of €7,500 of income, with transitional regime 2024–2033
• New cross-border workers: allowance of €10,000

This means that part of the income is not subject to Italian taxation, reducing the effective rate and favoring those with moderate incomes. The advantage is already evident in the income tax return of the following year, when the cross-border worker applies the allowance to the declared income.

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Key points

Step 1: G Permit Application

The first step is to obtain the G permit from the Ticino cantonal and municipal authorities. The application must be submitted to the Italian municipality of residence (in this case, the municipality of Giussano) or at a delegated entity's office. The following are required:

• Work contract in Ticino
• Italian residence certificate
• Completed application form
• Copy of passport/identity card

The permit is valid for one or more years and must be renewed periodically at the same offices.

Step 2: Opening a Bank Account in Ticino

Many Ticino employers pay salaries directly into a CH or IT account. It is advisable to open a current account with a Ticino bank or an institution operating in the border area to easily manage CHF/EUR exchange operations and the payment of Swiss bills (rent, utilities, taxes). This also simplifies the traceability of income for tax declaration.

Step 3: Enrollment in AVS, LPP, and LAMal

Enrollment in AVS and LPP is done automatically by the employer once the contract is signed in Ticino. Communication is made to the cantonal AVS compensation fund. For LAMal (health insurance), the cross-border worker has the right to choose: they can stay in Switzerland (through a CH insurer) or remain in the Italian National Health Service with private integration. The options should be evaluated according to personal medical needs and costs.

Step 4: Annual Italian Tax Declaration (730 or Unico)

By May 31 of the following year, the cross-border worker submits the Italian tax return (model 730 or Unico) to the Revenue Agency. In the CE section, they must report income received in Switzerland, taxes withheld in Switzerland, and tax credit to avoid double taxation. The refund (if due) is usually paid within a few months.

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