Galliate–Ticino: the frontier guide (cross-border guide)

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024: €10,000 deductible for new residents
• Swiss source tax: withholding of income only in Switzerland, no double taxation
• Swiss LAMal with option rights for frontier workers: deductible from CHF 300 to 2,500 per year
• AVS/AI: employee contribution 5.3% plus employer, mandatory for Swiss work

Key facts

• What: Residence in Galliate (Varesotto) and work in Ticino, binational tax management
• When: Current rules in force from 1 January 2024 (New Frontier Agreement)
• Where: Galliate in Lombardy (province of Varese); Ticino canton of the Swiss border
• Who: Frontier workers with G permit subject to Italian-Swiss regulations
• Deductible: €10,000 gross per year for new frontier workers (residence after 17 July 2023)
• AVS: Employee contribution 5.3% of gross salary
• LAMal: Excess CHF 300-2,500 per year according to the coverage chosen

Moving from another Italian city to Galliate to work in Ticino is an increasingly frequent choice among border workers. Galliate, municipality of Varesotto in northern Lombardy, offers geographical proximity to the Canton of Ticino and its labour market while maintaining Italian residence. However, this choice has tax, insurance and regulatory implications that require knowledge of the rules governing cross-border work.

The New Frontier Agreement, signed on 23 December 2020 and

Operational details

The tax regime for border workers Ticino-Italy

Those who live in Galliate and work in Ticino are simultaneously subject to Swiss and Italian regulations. On the Swiss front, the employer applies tax at source on gross income. This tax is NOT a “first installment” of the Italian tax — it is a Swiss federal/cantonal tax that remains in Switzerland. The Federal Tax Administration (AFC/ESTV) governs the federal rates, while the Canton of Ticino administers the cantonal quota. The rate varies according to income, marital status and personal circumstances, but is typically between 8% and 22% for the average income of border workers.

In Italy, foreign income from employment in Switzerland is subject to personal income tax according to progressive rates: 23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000. However, thanks to the 1976 Italian-Swiss Convention and the tax credit mechanism, the amount already paid in Switzerland (source tax) is deducted from the Italian personal income tax, avoiding effective double taxation.

Social contributions: AVS, LPP and other insurance

Those who work in Switzerland must pay contributions for Old Age and Survivors Insurance (AVS) and Disability Insurance (AI). The employee pays 5.3% of the gross salary (AVS/AI employee contribution). The employer pays an equivalent amount, for a total of about 10.6% of the mass

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

Concrete steps to move to Galliate and work in Ticino

1. Registration as a resident in Galliate You must register as a resident at the Galliate Town Hall (Registry Office). You will need: a valid identity document, a rental agreement or proof of property ownership in Galliate, and a residence declaration (municipal form). This registration is essential to document your Italian domicile and is necessary for all communications with the Italian Revenue Agency (Agenzia delle Entrate).

2. Notification to the Swiss employer As soon as you find a job offer in Ticino, inform your employer of your status as a cross-border worker and your residence in Galliate. The employer must register you with the Swiss insurance funds (AVS, AD, LAINF, LPP) and apply the withholding tax. If you are a new cross-border worker (residence established after July 17, 2023), provide the documentation certifying the move so that the employer can apply the €10,000 allowance.

3. Application for the €10,000 allowance (new cross-border workers) The allowance is NOT automatic. Submit a formal request to your employer, attaching: a certificate of residence in Galliate (issued by the Town Hall), the date of registry enrollment (after July 17, 2023), and the employment contract confirming the start of work in Switzerland after the move. The employer will forward the documentation to the Ticino cantonal tax office for official recognition. Once approved, the withholding tax on your gross income will be calculated only on the portion exceeding €10,000.

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