Living in Brissago-Valtravaglia, working in Ticino: border guide

Context

Brief Summary

• Income tax paid only in Switzerland, never in double
• New Frontier Agreement in force from January 1, 2024
• Tax exemption: CHF 7,500 (pre-2023 frontier workers) or CHF 10,000 (new)
• G Permit is the basis for regular cross-border work

Key Facts

• What: Italian residency, work in Ticino, frontier worker status
• When: New Agreement from January 1, 2024 (Law 83/2023)
• Where: Brissago-Valtravaglia, Lake Maggiore
• Who: Italian-Swiss frontier workers with G Permit
• Exemption: CHF 7,500-CHF 10,000 per year until the end of 2033
• Tax: 5.3% AVS/AI/IPG dependent in Switzerland

The New Frontier Agreement, signed on December 23, 2020, and entered into force on January 1, 2024 (ratified by Italy with Law 83 of June 13, 2023), has established a new tax regime for those living in Italy and working in Switzerland. If you live in Brissago-Valtravaglia and work in Ticino, this agreement directly concerns you and redefines your tax, contributory, and insurance obligations.

The fundamental rule is crystal clear: income tax on earnings is paid only in Switzerland, where your employer makes monthly deductions on your paycheck. Italy does not apply double taxation thanks to the tax credit recognized in the EU framework of the model 730, which automatically compensates the taxes already paid to the Swiss tax authority.

What changes with the New Agreement 2024

If you were already a frontier worker before July 17, 2023, you benefit from a CHF 7,500 per year transitional exemption (2024-2033). This means that the first CHF 7,500 of your Italian income are not subject to Italian taxation. New frontier workers (those who acquired the status after July 17, 2023) enjoy an even wider exemption: CHF 10,000 per year in the same period. These exemptions significantly reduce the Italian taxable base declared in the model 730.

The G Permit: a fundamental document

Living in Brissago-Valtravaglia and working regularly in Ticino requires the G Permit (Permit for frontier workers). This document, issued by the competent cantonal authorities in accordance with the bilateral agreement, is the legal basis for your status. Without it, you cannot access the Ticino labor market or benefit from the tax advantages provided between Italy and Switzerland.

The Convention to avoid double taxation between Italy and Switzerland, signed on March 9, 1976, remains the cornerstone of transfrontier taxation. Although Switzerland is not an EU or European Economic Area member, this Convention guarantees that frontier workers do not pay twice the same income.

Operational details

How does frontier taxation work in Switzerland

Switzerland applies a withholding tax on income earned in Swiss territory. If you earn CHF 50,000 in gross income per year, here's what happens in your paycheck and how to calculate your net income.

Swiss withholding tax on your paycheck

The AVS/AI/IPG (invalidity insurance, daily allowance) is 5.3% of your gross salary, paid by the employee. In addition, the unemployment insurance (AD/AC) is 1.1% up to CHF 148,200 in annual income, and the accident insurance (LAINF) is between 0.7% and 1.5%. For the LPP (second pillar pension), the rates vary between 7% and 18% depending on the age range (25 years and above).

In addition to these social contributions, the employer deducts the Ticino cantonal and municipal tax on the source. The rates are applied according to the Italian-Swiss Convention (March 9, 1976) and administered by the cantonal authorities.

Double taxation: Italian tax credit protects you

The income from dependent work in Switzerland must be declared in the Italian model 730. However, double taxation is avoided through the tax credit in the CE framework: Italy recognizes the taxes already paid in Switzerland and reduces the Italian IRPEF accordingly.

If you live in Brissago-Valtravaglia with an Italian residence, you are required to pay a portion of the Italian IRPEF? Only on the part of the income that exceeds the exemption. With the exemption of EUR 7,500 (or EUR 10,000 for new frontiers), the taxable base in Italy decreases significantly. The Italian IRPEF is applied according to progressive rates: 23% up to EUR 28,000, 33% between EUR 28,001 and EUR 50,000, and 43% above EUR 50,000.

LAMal: mandatory health insurance

As a frontier in Switzerland, you are required to take out health insurance with a Ticino cantonal fund (LAMal). The franchise for adults varies from CHF 300 to CHF 2,500 per year. As a frontier with a G permit, you have the option: you can choose to remain insured in Switzerland or opt for Italian insurance (CMI). Check with your employer and the competent cantonal office which option is more convenient for your situation.

Scenario: from CHF 50,000 gross to net

A frontier who earns CHF 50,000 in Ticino pays in Switzerland around CHF 7,500-CHF 8,000 in AVS, AD, LAINF, LPP, and cantonal taxes (approximate, non-binding figures). In Italy, if they are an 'old' frontier, the first EUR 7,500 are not taxed. On the remaining income (around EUR 40,500 converted), the progressive IRPEF is applied, and the tax credit reduces the burden further. Use the salary calculator for a personalized estimate.

Key points

Practical Procedure: How to Relocate to Brissago-Valtravaglia

If you decide to live in Brissago-Valtravaglia and work in Ticino, follow these steps to regularize your position.

Step 1: Obtain the G Permit

Contact the cantonal authorities in Ticino (Migration Section or equivalent office in your district). The G Permit is usually issued to those with a work contract with a Ticinese company. You will need: a valid passport or identity document, a signed employment contract, and completed forms according to cantonal guidelines. The release times are usually 2-4 weeks.

Step 2: INPS Registration and Italian Residency

Although you work in Switzerland, you must register with the Italian INPS as a 'worker resident in Italy with foreign income.' This activates your Italian pension contributions in synchronization with the Swiss AVS. Visit the INPS in person or online; you will need your CUIC (Citizen Identification Code) and your Swiss employment contract.

Step 3: Municipal Anagraphic Registration

Transfer your anagraphic residence to the Comune of Brissago-Valtravaglia. This is a prerequisite for obtaining the G Permit and being recognized as a 'resident in Italy' by the Revenue Agency and INPS. You will need identity documents, a previous residence certificate, and a completed application.

Step 4: Income Tax Declaration (Model 730)

Every year, by June 30 (or July 31 if through an intermediary), you will submit the Model 730 to the Italian Revenue Agency. Here, you will declare all income earned in Switzerland, and benefit from the tax credit to avoid double taxation. The Model 730 must be completed with all Swiss withholdings declared in the income certificate.

Step 5: Health Insurance (LAMal or CMI)

As a G Permit holder, you must subscribe to a health insurance policy. You have the option between LAMal (Swiss fund) or CMI (Italian insurance). If you choose LAMal, register with a Ticinese cantonal fund. If you choose CMI, remain insured in Italy. Consult your employer and the competent cantonal office before deciding.

Final Checklist for Relocation

• Signed employment contract in Ticino
• G Permit in progress
• Residence transferred to Brissago-Valtravaglia
• INPS registered as a worker
• LAMal or CMI subscribed
• Model 730 prepared for declaration

Once everything is in order, your income flow will be transparent for both Switzerland and Italy. Remember that the rules are complex: consult a tax consultant or a frontiersmen association for specific details on your situation.

Use our salary calculator to estimate your net monthly income as a frontiersman in Ticino.