Living in Albese with Cassano and working in Ticino (cross-border guide)

Context

In Brief

• Albese con Cassano is a municipality in the province of Como, Intelvi Valley, Ticino border
• New frontier agreement in force from January 1, 2024
• Source tax withheld only in Switzerland; tax credit in Italy
• G permit required; €10,000 exemption (new frontiersmen)

Key Facts

• What: Declare dependent income in Switzerland as a frontier resident in Como
• When: New agreement from January 1, 2024
• Where: Ticino-Como border (Brogeda, Chiasso, Gaggiolo, Ponte Tresa passes)
• Who: Frontiersmen with G permit, employees in Ticino, residents in Italy
• Amount: €10,000 annual exemption (new frontiersmen); €7,500 exemption (old frontiersmen until 2033)

Albese con Cassano, a small municipality in the province of Como in Lombardy, attracts an increasing number of frontiersmen who choose to live a few kilometers from the Ticino border due to cost of living and proximity to work. The decision to move from one Italian region to a border location is not only a geographical issue: it has significant implications in terms of taxation, social security, and acquired rights on the transfrontier labor front.

With the entry into force of the new frontier agreement on January 1, 2024 (signed on December 23, 2020 and ratified in Italy with Law 83 of June 13, 2023), the terms of the Italian-Swiss Convention of December 9, 1976 have been modified, which directly affect the calculation of taxes on income from work and the social security treatment of those living in Como and working in Switzerland.

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Operational details

Cross-Border Taxation in the 2024-2033 Regime

The new cross-border agreement modifies the tax regime for individuals living in Italy and working in Switzerland. Income tax withheld by the Swiss employer is based solely on the federal, cantonal, and municipal tax rates of Ticino. Italy does not apply a parallel source tax: the risk of double taxation is managed through the mechanism of tax credit in the model 730, section CE.

This means that as a cross-border resident in Como, you receive a net Swiss salary (with Swiss taxes deducted) and subsequently declare the gross income in Italy, benefiting from the Swiss tax credit to offset the Italian tax on the same taxable base.

Transitional Regime: Old and New Cross-Border Residents

The new agreement distinguishes between two categories:

Old Cross-Border Residents (residing in Italy before July 17, 2023): benefit from an exemption of €7,500 per year on the Italian portion of income, valid from 2024 to 2033. This means that the income subject to Italian taxation is reduced by €7,500.

New Cross-Border Residents (residing in Italy from July 17, 2023): are entitled to a €10,000 annual exemption, valid for the entire period they maintain their cross-border status.

Both regimes imply that the gross income declared to the Swiss employer remains unchanged; the tax effect only applies on the Italian side of the declaration.

Tax Rates in Switzerland

In Ticino, the source tax is determined by federal, cantonal, and municipal tariffs. As a dependent cross-border worker, you will automatically pay:

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Key points

Practical Guide: Five Steps to Become a Frontalier

Step 1: Employment Contract and Permit G

The first step is to sign an employment contract with an employer in Ticino. The employer will provide the necessary documentation to apply for the frontalier residence permit (Permit G) at the Questura of Como or the competent territorial prefecture, depending on the province of residence. The permit authorizes work in Switzerland as a resident frontalier in Italy and must be requested before the start of the employment relationship. On average, the permit G application process takes 30–60 days.

Step 2: INPS Registration and Previdential Communications

Although the main contribution payments are made in Switzerland (through AVS), it is necessary to inform the INPS that you are a frontalier with foreign work. This avoids double contributions and allows the recognition of Swiss contributory periods for Italian pensions (if requested in the future). Contact your CAF reference at Como to deposit the frontaliership communication with Italian authorities.

Step 3: Choice and Registration of Health Insurance

If you reside in Italy but work in Switzerland, you can opt for:

• Swiss health insurance (LAMal): universal, with CHF 300–2,500 adult deductibles and variable monthly premiums per canton/insurer
• Italian coverage (INPS/SSN): possible if you maintain Italian system registration

The choice must be communicated to the Swiss employer and competent authorities within the prescribed terms (usually within 30 days of starting work). It remains valid for a minimum period, usually 12 months.

Step 4: Annual Tax Declaration

By October 31 of each year, the frontalier must submit the model 730 to the Revenue Agency (through CAF or autonomously online). Essential documents:

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