Living in Giussano, working in Ticino: frontier 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 March 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, 33% 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 Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).
• 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.

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.

Social Protection: AVS, LPP and LAMal

The choice to live in Giussano while working in Ticino entails the obligation to enroll in the Swiss social systems. The AVS is the first mandatory pension pillar, guaranteed by the federal state. The LPP (professional pension) is the second pillar, provided by the employer's pension fund. The LAMal (health insurance) is mandatory, with adult deductibles ranging from CHF 300 to CHF 2,500 depending on the chosen policy. These costs are added to the gross salary but guarantee Swiss pension and health protection, often more advantageous than the Italian one for those working full-time in Ticino.

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

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.

Step 5: Annual Documentation and Monitoring

Always keep monthly/annual certificates from the Swiss employer (income statement, taxes withheld), bank statements proving salary transfers, communications from the health insurance (active coverage), and AVS statements (contribution statement). These documents are essential for the Italian declaration and for any tax checks.

Useful Tools

Calculate the exact taxes on your pay slip using the cross-border salary calculator, check the CHF/EUR exchange rate with the exchange tool, and consult the cost of living comparator Ticino vs Como.