Living in Cremia and working in Ticino: is it convenient for border workers? (cross-border guide)

Context

In a nutshell

• Cremia is a few km from the Swiss crossings (Brogeda, Chiasso, Gaggiolo), ideal for border crossers
• G permit is required to work in Switzerland as an Italian citizen
• Swiss source tax + Italian tax credit avoid double taxation
• AVS, LPP, LAMal are mandatory; AVS registration must be made within 5 days of work

Key facts

• Chi: Italian border workers residing in Italy, employed in Canton Ticino
• Where: Cremia (Como, Italy); border at Brogeda, Chiasso, Gaggiolo passes
• What: G permit, tax at source, AVS/LPP/LAMal, New Frontier Agreement
• When: from 1 January 2024 the New Frontier Agreement comes into force
• Income exemption: €7,500 (old frontier workers, transitional regime 2024-2033); €10,000 (new frontier workers)

Cremia is an interesting residential choice for those who decide to work in Ticino as a border worker. Located on the Comacina shore, this Lombard municipality can be reached from the main Swiss border crossings in a reasonable time, allowing commuters to maintain their domicile in Italy while operating in the Canton of Ticino. For those who opt for this solution, however, it is essential to understand the tax, social security and administrative implications that derive from border status.

The first step for every Italian worker who decides to move to Cremia with the intention of working in Switzerland is to obtain the permesso G, the visa that

Operational details

Tax at source and new border taxation (2024-2033)

One of the pillars of the life of the border worker is to understand how the tax levy works. Unlike an Italian employee residing in Italy, a border worker working in Switzerland is subject to Swiss source tax, not Italian personal income tax. This legislative choice was designed to avoid double taxation: in fact, Italy does not apply a new taxation on employment income in Switzerland thanks to the tax credit in the EC framework of the tax return (form 730).

Tax at source is withheld exclusively from Switzerland during the working period. The Swiss tax administration at the federal level, through the AFC (Federal Tax Administration), administers the federal rates; the Canton of Ticino also applies its own cantonal rates. For the border worker resident in Cremia who works in Ticino, the Canton of Ticino will apply the tax at source according to its own bases.

The New Frontier Agreement, which entered into force on 1 January 2024, introduced a significant change: frontier workers are divided into two categories. "Old" border workers (those who already exercised this qualification before 17 July 2023) benefit from an annual deductible of €7,500 and fall under a transitional regime that will be valid from 2024 to 2033. The "new frontier workers" (hired as of July 17, 2023) benefit from an exemption

Useful planning tools

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

Key points

Health Insurance and Transfer Checklist

As for health insurance (LAMal), the frontaliere has the right to opt: they can choose to maintain Italian coverage or enroll in a Swiss LAMal. If they opt for the Swiss LAMal, they will need to contact a Ticinese health insurance fund. The standard adult deductibles in Switzerland vary from CHF 300 to CHF 2,500 depending on the contract and the health insurance fund chosen. This option is important for the frontaliere's personal economic balance and recommends a careful assessment of coverage before the transfer.

To ensure that the Italian tax return is correct, it is essential to keep the documentation of the Swiss withholding tax: this document will serve as proof for the calculation of the tax credit in the model 730 (next year) in the CE framework. Errors in this phase can result in corrections by the Revenue Agency and often unexpected tax recoveries.

Operational Steps and Critical Deadlines

Before the transfer:

• Research and contact with the Ticino employer
• Request for G permit at the authorities (the employer supports the process)
• Information at the Cremia Municipality on residence change (if not yet transferred)

First 5 days from the start of work:

• Enrollment in AVS (absolute deadline: 5 days from the start)
• Collection of AVS number and SUVA affiliation number (provided by the contributions office)

In the following weeks:

• Enrollment in the Swiss LAMal (if they choose this option, otherwise they maintain Italian coverage)
• Verification of the pay slip for the first details of withholding tax
• Consultation with a tax consultant for annual fiscal planning

Annually:

• Conservation of the documentation of the withheld tax
• Tax return in Italy with CE framework for tax credit
• Verification of possible refunds at the Revenue Agency

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