Castelmarte Frontier: living and working in Ticino

Context

Brief Summary

• New Frontier Agreement in effect from January 1, 2024
• Annual exemption of €10,000 for new frontier workers
• Permit G mandatory: authorization from SEM
• Tax refunds via model 730, quadro CE form

Key Facts

• What: New Frontier Agreement between Italy and Switzerland
• When: In effect from January 1, 2024 (signed on December 23, 2020)
• Where: Ticino-Italy border, province of Como
• Who: Frontier workers residing in Italy
• Exemption: €10,000 annual (new frontier workers from July 17, 2023)
• Tax treatment: Income tax only in Switzerland
• Refund: Credit for quadro CE (model 730 Italian form)

Castelmarte is an Italian town in the province of Como, strategically located for those working in the Canton Ticino. Just a few kilometers from the Brogeda and Chiasso border crossings, the town represents a convenient residential base for frontier workers who travel daily to Ticino companies, hospitals, and offices. The New Frontier Agreement, which came into effect on January 1, 2024, has transformed the tax regime for those who choose to live in Italy and work in Switzerland. Signed on December 23, 2020, and ratified by Italy with Law 83 of June 13, 2023, the agreement provides a more favorable tax regime compared to the past. The withholding tax only occurs in Switzerland, while in Italy, a tax credit is available through the model 730, quadro CE form.

Castelmarte and Ticino border crossings

Living in Castelmarte offers easy access to the Ticino job market. The town is located less than 30 kilometers from the main employment poles in the region — Lugano, Mendrisio, Bellinzona. Frontier workers have two options for entry: the Chiasso border crossing (the busiest) and the Brogeda crossing, reachable by car in 20-40 minutes depending on the workplace. The road network is served by the A2 motorway, which connects Como directly to the Ticino territory.

Permit G and registration

To work in Switzerland, every frontier worker residing in Castelmarte must obtain the Permit G, a non-personalized border permit that allows daily access to Swiss territory. The request is submitted to Swiss authorities (SEM — State Secretariat for Migration) through the employer. Once authorized, the frontier worker remains subject to AVS/AI/IPG (5.3% at the expense of the employee), AD/AC (1.1% up to CHF 148,200), and other Swiss social contributions. The LAMal (Swiss health insurance) is optionally available with the right to opt-in for group G frontier workers; alternatively, they remain covered by Italian healthcare.

Operational details

How the new tax regime works

For new frontier workers (those who acquired the status after 17 July 2023), the annual deductible is €10,000. This means that income from employment up to this threshold is not subject to taxation in Switzerland. Above €10,000, the source tax is calculated and withheld directly from the Swiss paycheck. In Italy, the border worker declares income in form 730 and is entitled to the tax credit (EC framework), which compensates for potential double taxation deriving from the Italian-Swiss Convention of 9 March 1976.

Payroll and contributions

A border worker working in Ticino as an employee sees on his paycheck:

• AVS/AI/IPG withholding: 5.3% of gross salary
• AD/AC contribution: 1.1% (up to CHF 148,200 annual salary)
• LAINF contribution: 0.7-1.5% (depends on occupational risk)
• LPP contribution (second pillar): 7–18% depending on age (from 25 years onwards)

The employer, for its part, pays the employer's contributions: AVS/AI/IPG 5.3%, AD/AC 1.1%, LAINF an additional percentage, and LPP. The combination of employee and employer contributions forms the basis of Swiss social protection. In Italy, the border worker who declares his income must pay the IRPEF according to the progressive rates: 23% up to €28,000, 33% from €28,001 to €50,000, 43% over €50,000. However, thanks to the tax credit (EC framework of 730), the tax actually due

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

The Checklist for the Frontalier: Concrete Steps

Moving to Castelmarte and starting work in Ticino requires a sequence of obligations. Most can be completed in 2-4 weeks, provided that the Swiss and Italian administrative times are respected.

Step 1: Obtain the G Permit

The G Permit is not requested directly by the frontalier, but by the Swiss employer through the SEM (State Secretariat for Migration). The procedure begins when the company transmits the application, attaching the employment contract, personal data and Italian domicile declaration. The SEM issues a provisional authorization (valid for about 6-8 weeks), during which the frontalier can already enter and work in Switzerland. The definitive authorization arrives within 90 days. The G Permit is not personalized: any eligible frontalier can present themselves at the Chiasso or Brogeda border crossings without additional checks.

Step 2: Fiscal Registration in Switzerland

Once the employer communicates to the SEM the start of the employment relationship, the frontalier must register with the Federal Administration of Contributions (AFC/ESTV) cantonal Ticinese. This registration is essential to receive a Swiss contributor number (UIPersonnes), obtain the AVS/AI payment code and document the basis for the calculation of the withholding tax. The registration can be made online through the cantonal portal or at the tax offices in Lugano, Bellinzona or Mendrisio (depending on the place of work).

Step 3: Declaration in Italy

The frontalier must inform their Italian municipality (in Castelmarte: Anagrafe Office) of their new status as a transfrontalier worker. This does not affect their residence, but their Italian domicile certificate. Subsequently, by June 30th of each year, the frontalier completes the model 730 at an intermediary (accountant, CAF) indicating the Swiss gross income (communicated by the employer), the amount of withholding tax paid in Switzerland and the request for tax credit (CE frame).

Essential Documents

To complete the procedure, the following documents are required: Swiss employment contract, Italian Anagrafe extract (domicile in Castelmarte), valid identity document (passport or identity card), Italian Fiscal Code, Italian bank account (to receive the salary) and information on LAMal coverage (if Swiss option) or Italian SSN enrollment certificate.

Timeline of Obligations

Month 0 (before starting): Sign Swiss contract; employer submits G Permit application to SEM. Month 1: G Permit provisional authorization received; registration with AFC/ESTV Ticinese; first Swiss salary (with automatic deductions). Month 3-4: G Permit definitive authorization; start of Italian fiscal cycle (if gross income >€10,000, the 730 declaration will be presented the following year). The procedure is standard and used by tens of thousands of frontaliers every year.

Action: Calculate Your New Salary

To calculate with precision how your Swiss salary will change once the AVS/AI deductions, LPP contributions and withholding tax are applied according to the New Frontalier Agreement, use the frontalier salary calculator. You can simulate different salary scenarios and understand exactly how much will remain in the paycheck, how AVS/AI and LPP are split, and how the tax refund in Italy changes year by year.