Champion of Italy: living in the enclave and working in Ticino (cross-border guide)

Context

In a nutshell

• Campione d 'Italia is an Italian enclave in Swiss territory, on Lake Lugano
• From 1 January 2024, the New Italy-Switzerland Border Agreement is in force
• Old border guards: exemption of €7,500; new: excess of €10,000
• Double Taxation Convention signed on 9 December 1976

Key facts

• What: New border agreement between Italy and Switzerland
• When: Signed on 23 December 2020, effective from 1 January 2024
• Where: Canton Ticino (border crossings) and Champion of Italy
• Who: Italy and Switzerland (Italian ratification with Law 83 of 13 June 2023)
• Old frontier workers: exemption up to €7,500, transitional regime 2024–2033
• New frontier workers: deductible of €10,000
• Tax at source: withheld exclusively in Switzerland
• Double taxation agreement: 9 December 1976

Campione d 'Italia is an Italian enclave located on the eastern shore of Lake Lugano, completely surrounded by the Canton of Ticino. This geographical peculiarity makes the country a unique case for frontier workers: it does not take long journeys to reach Lugano, which is about 15 kilometres away. For those who want to live in the enclave and work in Ticino, the daily logistics are different from those who live beyond the land border.

The New Frontier Agreement in force since 2024

The New Frontier Agreement between Italy and Switzerland, signed on 23 December 2020, entered into force on 1 January 2024, after ratification

Operational details

Realistic costs and journey times

Those who live in Campione d 'Italia and work in Ticino have limited journey times. The distance between Campione and Lugano is about 15 km, which can be covered in 20-30 minutes by car depending on traffic, passing through the Bissone pass. The connection by lake, with the boats of the Società Navigazione del Lago di Lugano, offers a panoramic but slower alternative, about 40-50 minutes. For destinations in Sottoceneri (Lugano, Mendrisio, Chiasso) and Sopraceneri (Bellinzona, Locarno), the times increase proportionally.

# Costs to budget

Life in Campione d 'Italia has generally lower costs than in Ticino, but commuting involves recurring expenses. Petrol in Italy costs less than in Switzerland, but the short journey doesn't matter too much. The highest cost concerns compulsory health insurance (LAMal): border workers with a G permit have the right of option between Swiss and Italian insurance. Annual deductibles for adults range from CHF 300 to CHF 2,500, depending on the chosen sickness fund. For those who travel a few kilometers, the cost of the car (Swiss vignette CHF 50, insurance, maintenance) is the main item. The CHF/EUR exchange rate affects purchases and money transfers; it is convenient to compare the rates before each operation.

Advantages and Disadvantages of Sample Transfer

Living in Campione d 'Italia and working in Ticino presents specific pros and cons. The advantages

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

What to do before moving: operational checklist

Before settling in Campione d'Italia to work as a cross-border commuter in Ticino, some essential requirements must be verified. The first step is to secure a job in Switzerland, since the G permit is tied to the employer. Subsequently, maintain official residence in Campione d'Italia: the Italian municipality issues the documentation required for the Swiss authorities.

G permit procedure

The Swiss employer starts the procedure at the cantonal population office. The documents typically required are: employment contract, Italian residence certificate, valid identity document, criminal record certificate (for some categories), proof of housing. After approval, the cross-border commuter receives the G permit, which allows daily entry into Switzerland.

Tax management and income declaration

In Switzerland, the employer applies withholding tax directly on the payslip. In Italy, the cross-border commuter must file an income tax return (form 730 or Redditi PF), indicating foreign income in section CE and requesting the tax credit to avoid double taxation. For new cross-border commuters, income exceeding the €10,000 allowance is taxable in Italy; for old cross-border commuters, the transitional regime applies with an exemption up to €7,500. Documentation to keep includes: Swiss salary certificate, proof of withholding tax paid, employment contract.

Timelines and deadlines to remember

The Italian income tax return must be filed by 30 September (form 730) or 30 November (form Redditi PF). Registration with LAMal must be completed within three months of starting work. The G permit must be renewed periodically, generally every five years or when changing employer.

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