Living in Casnate and working in Ticino as a border worker

Context

In a nutshell

• Casnate con Bernate is 20 km from the Swiss border, a strategic position for border workers
• Tax at source withheld only in Switzerland, no double taxation
• New Agreement 2024: deductible €10,000 new frontier workers, €7,500 old
• Permit G allows daily commuting and right option LAMal

Key facts

• What: Living in Casnate with Bernate and working in Ticino as a border worker
• When: New Agreement Regulations in force from 1 January 2024
• Where: Casnate with Bernate (Como, Lombardy) and Ticino (Switzerland)
• Who: Frontier G permit holders
• Amount: Tax exemption €10,000 (new frontier workers) or €7,500 (old, transitory)

Casnate con Bernate is a small town in the province of Como, located in Lombardy a few kilometers from the border with Ticino. This strategic geographical position makes it an interesting choice for those who intend to work in the offices, production plants or services of the Canton of Ticino while maintaining their Italian tax residence. In recent years, the new regulatory framework governing frontier workers has made this solution even more advantageous, with a series of tax breaks and simplified procedures introduced by the New Frontier Agreement, which entered into force on 1 January 2024.

Living in Casnate and working in Ticino involves a series of practical and bureaucratic choices that it is essential to understand before moving. Unlike those who live and work in the same country,

Operational details

The concrete advantages of geographical choice

For a border worker who lives in Casnate and works in Ticino, the economic and practical advantages are significant. First of all, the cost of living in the Italian border area is generally lower than in ordinary Ticino: rents, household utilities and groceries keep prices lower. The frontier worker can therefore maximise the purchasing power of the gross Swiss salary, which even after tax at source remains competitive with respect to Italian wages in the same sector. This difference in cost is particularly relevant for those who evaluate the purchase of real estate: homes in the municipality of Casnate cost significantly less than in Ticino municipalities such as Lugano or Bellinzona.

Secondly, the system of Swiss social contributions fully covers the border worker who resides in Italy and works in Ticino. As an employee, you pay 5.3% of your gross salary in AVS (Old Age Insurance), AI (Disability Insurance), and IPG (Income Loss Allowance) contributions. To these is added 1.1% for insurance against occupational accidents (AD and AC), with a gross ceiling of CHF 148,200 per year. On the second pillar (LPP — the mandatory Swiss occupational pension scheme), the contribution varies from 7% to 18% depending on the age and structure of the company.

The Swiss Pension System and Third-Party Planning

Key points

Step-by-Step Procedure: From the First Step to the First Job

Before relocating to Casnate and starting work in Ticino, it is essential to complete a well-defined sequence of administrative steps.

Step 1: Job Search and Swiss Contract First, you need to obtain a written job offer from a Ticinese company. The employment contract is the fundamental document for requesting a G permit. It must indicate the position, gross monthly salary, contract duration, and workplace. Many Ticinese employers are accustomed to managing foreign workers and can guide you through the subsequent steps.

Step 2: G Permit Request at the SEM Once you have the contract, submit a request to the competent cantonal migration office (SEM) for the Ticino canton (usually Bellinzona or Lugano, depending on the workplace). The required documentation includes: passport or national ID card, Italian domicile certificate (obtained from the Casnate municipality), employment contract, health insurance attestation, and completed SEM forms. The processing times are usually 4–8 weeks. The SEM verifies that the Swiss labor market is not harmed by the hiring and that the contractual conditions comply with Swiss regulations.

Step 3: Registration with the Employer and Swiss Authorities Once you have obtained the G permit, the employer registers you with the State Secretariat for Economic Affairs (SECO) and the competent cantonal authorities (e.g., for social contribution purposes). This registration is essential as it activates the payment of AVS/AI/IPG and LPP contributions.

Step 4: Health Insurance Choice Before the first day of work, you must choose whether to opt for Swiss health insurance (LAMal) or maintain Italian coverage. If you choose LAMal, contact one of the recognized insurance companies in Ticino and subscribe to a policy. Coverage usually takes effect on the 1st of the month following subscription.

Step 5: First Salary and Withholding Tax From the first salary, your employer applies the cantonal withholding tax according to the Ticinese rate. The gross monthly amount, excluding the withholding, is paid into your Italian bank account. The withholding amount depends on: gross salary, marital status, number of dependents, and Ticinese cantonal brackets.

Step 6: Italian Tax Declaration and Credit Management By April 30th of the following year (ordinary deadline for the model 730), you must declare the Swiss income received in the previous year to the Italian Revenue Agency. Complete the model 730 (or the model Redditi PF if you prefer) including: Swiss gross foreign income, Swiss withholding tax paid (downloadable from the pay stub), and request the credit. The credit compensates the Swiss taxes already paid with the theoretical Italian taxes on foreign income, avoiding double taxation.

CTA: Calculate Your Net with Precision

To understand exactly how much you will receive net each month after the Ticinese withholding tax, AVS/LPP deductions, and other factors, use our pay stub calculator. You can simulate various salary scenarios, enter your marital status and number of children, and view the monthly and annual net amounts. This simulation allows you to plan your Italian budget with confidence and understand the real impact of Swiss taxation on your pay.

For further doubts on permit procedures, visit our dedicated guide to frontier permits. If you have questions about double taxation, consult our tool for tax return calculation. Finally, take advantage of our section on pillar 3 to optimize your private Swiss pension.