Living in Cossogno and working in Ticino: border guide

Context

In brief

• New Cross-Border Agreement effective from 1 January 2024
• Withholding tax deducted in Switzerland for cross-border workers
• For Article 9 of the Agreement, “old frontier workers” are people who met the tax requirements and worked in Graubünden, Ticino or Valais on 17 July 2023 or during the period from 31 December 2018 through 17 July 2023. Article 9 keeps covered employment income taxable exclusively at source in Switzerland; other workers follow the ordinary regime, with ordinary taxation in Italy, a credit for Swiss tax and Swiss withholding at 80% of the ordinary rates. The €10,000 figure in Article 4 of Italian Law No. 83/2023 is only the income limit referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance for new frontier workers. Sources: ESTV factsheet (Italian) · Agreement, Art. 9 · Law No. 83/2023, Art. 4.
• LAMal mandatory with option right for cross-border workers with G permit

Key facts

• What: Living in Cossogno (Italy) and working in Ticino as a cross-border worker
• When: From 1 January 2024 (New Cross-Border Agreement in effect)
• Where: Cossogno, province of Verbano-Cusio-Ossola, Ticino border
• Who: Cross-border workers with G permit and registered with INPS
• The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax.

Cossogno, a municipality in the province of Verbano-Cusio-Ossola on the shores of Lake Maggiore, attracts cross-border workers who work in the Canton of Ticino. This territory, located a few kilometers from the Ticino border, combines the quality of Italian life with access to the Swiss job market. From 1 January 2024, the New Cross-Border Agreement has redrawn the tax regime and benefits, making advance planning more important than ever.

The tax regime after the New Agreement

Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. These amounts apply to employment income and represent the gross amount exempt from ordinary Italian taxation. The withholding tax on income is deducted by Switzerland, at the place of work. Italy avoids double taxation through the tax credit in the CE section of the tax return (730), a mechanism consolidated by the Italian-Swiss Convention of 9 March 1976. This means that the cross-border worker does not pay taxes on two fronts: Switzerland withholds at source, Italy applies the allowance and the credit for the Swiss withholding. Note: the exemption does not cover capital income, interest, or income other than employment income. A cross-border worker who has investments, securities, or rented properties will have to declare these incomes in Italy according to ordinary regulations.

Contributions and social security in Switzerland

As an employee in Ticino, the cross-border worker accumulates pension rights in the Swiss system. The contributions to AVS (Old Age and Survivors' Insurance) and AI (Disability Insurance) amount to 5.3% for the employee. To these are added the contribution for IPG (Loss of Earnings Allowance) and unemployment/crisis insurance (AD/AC), equal to 1.1% up to the limit of CHF 148,200 of annual salary. The LAINF (Accident Insurance) varies between 0.7% and 1.5%, depending on the professional risk category. If the annual salary exceeds CHF 21,330, the obligation to register with the Professional Pension (LPP, second pillar) is triggered, with contribution rates from 7% to 18% depending on the age group of the worker. The Italian INPS does not intervene for employment income in Switzerland, but the cross-border worker retains the rights accumulated in previous periods, creating a situation of double pension that must be coordinated at retirement.

Operational details

Health insurance and medical coverage

Those who live in Cossogno but work in Ticino must enroll in a Swiss health insurance (LAMal). Cross-border workers with a G permit have the option to maintain Italian coverage from INPS or switch to a Swiss LAMal. Many opt for LAMal to align their protection with their workplace and to access Swiss healthcare services directly.

Deductibles for adults range from CHF 300 to CHF 2,500 annually, depending on the contract and chosen insurance fund. Monthly premiums vary significantly among insurers: comparing three to four offers is essential to control costs. From the perspective of a cross-border worker residing in Italy, LAMal provides immediate coverage for care in Ticino during working hours, while the Italian system remains available for services on rest days in Cossogno.

Pension and supplementary pension savings

Cross-border workers accumulate pension rights in the Swiss system according to AVS/AI contributions. Occupational Pension (LPP) applies to all employees with an annual salary above CHF 21,330. The LPP contribution rate varies from 7% to 18% depending on the age bracket, with the burden shared between the employee and the employer.

Many cross-border workers supplement their pension strategy with the third pillar (3a), a Swiss tax deduction tool that allows annual contributions up to CHF 7,040 (2024 data) for employees. The Italian INPS accumulates rights in parallel as a secondary effect of contributions during the pre-cross-border period, creating a complex situation that requires coordination at retirement. Consulting an international pension expert is not a luxury but a practical necessity.

Advantages of choosing Cossogno

• Lower cost of living: Housing, groceries, and local services cost less compared to Ticino
• The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013.
• Established Italian community: Opportunity to maintain social and cultural networks in the home territory
• Integrated healthcare access: LAMal for emergencies in Ticino, INPS for routine care in Italy
• Attractive landscape: High-quality natural environment (Lake Maggiore, mountains)

Concrete disadvantages and constraints

• Daily commuting: Early departure times, wait times at border crossings during peak periods, dependence on weather conditions, and potential alpine road closures
• Administrative complexity: Parallel management of two tax, pension, and healthcare systems with different deadlines
• Additional costs: Fuel, Swiss vignette, car insurance, potential tolls, increased mechanical wear
• Social isolation: Reduced participation in the Ticinese community during non-working hours
• Mobility constraints: Changing employers in Ticino or relocating the job requires reassessing the sustainability of commuting times

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Practical checklist: what to verify before moving

The decision to live in Cossogno and start as a cross-border worker requires an ordered sequence of administrative steps. Each of them is not optional but necessary to avoid fiscal and legal surprises.

1. Registration with the special INPS management If not already registered, register with INPS for the special cross-border management. This registration determines your legal status and access to the tax exemption. The registration date is crucial: if before July 17, 2023, you receive €7,500 annually; if later, €10,000.

2. Request for the G permit The cross-border work permit (G) is managed by the canton of work (Ticino). Coordinate with your employer for the request to the cantonal authorities, or contact SECO at the federal level. For new permits after January 1, 2024, verify the requirements of the company agreement.

3. Choice of LAMal and communication Within 30 days of starting activity in Switzerland, register with a Swiss LAMal fund or communicate to INPS the intention to maintain Italian coverage. Collect quotes from at least three funds, comparing monthly premiums, deductibles, dental, and optical coverage.

4. Opening a Swiss bank account Many Ticino employers require a Swiss IBAN for salary payment. Choose a bank with an accessible branch (e.g., Locarno, Bellinzona), checking fees on CHF–EUR transfers and exchange rates. A second Italian account is useful for local expenses.

5. Tax estimate and declaration planning Use the cross-border salary calculator to estimate the net post-Swiss tax and pre-Italian exemption. Plan the submission of the Italian 730 declaration (March–April of the following year), including the CE section for the tax credit on Swiss withholding.

6. Pension coordination Contact a pension advisor (at a union or Italian CAF) to understand the coordination between Swiss contributions and Italian payment periods. This advice is critical in case of future mobility.

7. Residential registration and documentation Keep the residential registration in Cossogno updated, communicate any address change to the Ticino employer, and keep documentation (residence certificates, employment letters, pay slips, Swiss tax receipts) for possible checks by the Italian Revenue Agency.

Next steps: operational tools

The decision to move to Cossogno to work in Ticino is concretely feasible and thousands of cross-border workers do it every year. Early tax planning, correct administrative registration, and awareness of logistical constraints transform this choice into a tangible opportunity for quality of life and economic stability.

For a detailed estimate of your net based on the work profile, use the cross-border salary calculator. To clarify every regulatory aspect, consult the complete guide to cross-border permits before moving.