Living in Lentate and working in Ticino: border crossing

Context

In brief

• Lentate sul Seveso is a Lombard municipality in the province of Milan, bordering Ticino
• G border workers pay withholding tax in Switzerland; tax credit in Italy avoids double taxation
• 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 (Swiss health insurance) is a right of option; deductible CHF 300–2.500

Key facts

• What: Lentate sul Seveso is a Lombard border municipality with Ticino
• Where: Province of Milan, Lombardy (Italy)
• Who: Border workers with Permit G who reside in Italy and work in Switzerland
• When: New Border Workers Agreement effective from January 1, 2024
• Permit: Permit G mandatory; AVS deductions 5.3% (employee), AD/AC 1.1%, LAINF 0.7–1.5%
• Taxation: Withholding tax in Switzerland; tax credit in Italy (quadro CE of the 730)

Lentate sul Seveso is a municipality in northern Lombardy, in the province of Milan, strategically located north of the capital. Its proximity to the Swiss border, particularly to the Ticino border crossings (Brogeda, Gaggiolo, Ponte Tresa), makes it an interesting residential choice for those who decide to work in Ticino while maintaining their residence in Italy.

Those who live in Lentate and work in Switzerland (Canton Ticino) fall under the legal regime of border workers with Permit G. This status entails specific rights and duties from a fiscal, pension, and insurance perspective, regulated by the New Border Workers Agreement signed on December 23, 2020, and effective from January 1, 2024.

Lentate and the border worker's geography

Lentate sul Seveso extends into the Lombard plain, north of Milan, in a position that facilitates access to the main border crossings with Ticino. The proximity to the Brogeda, Gaggiolo, and Ponte Tresa crossings is a crucial logistical factor: border workers can reach Ticino work centers (Lugano, Mendrisio, Bellinzona, Locarno) through daily commuting. The town is located in the heart of the Lombard industrial area, with direct access to the A4 (Milan-Chiasso) and A9 highways towards Como and Lake Como. This geographical scenario is particularly relevant for a border worker who wants to maintain legal residence in Italy while benefiting from access to the Ticino job market.

The border worker condition: fiscal and contributory regime

The border worker with Permit G who works in Ticino is subject to withholding tax directly from the Swiss salary. The rate depends on the canton and income bracket, but AVS (old-age and disability insurance) contributions for the employee amount to 5.3%, to which complementary insurance contributions are added (AD/AC 1.1%, LAINF 0.7–1.5%, LPP depending on age).

In Italy, the border worker declares the foreign income in the quadro CE of the 730/PF and accesses the tax credit to avoid double taxation, provided for by the Convention between Italy and Switzerland (March 9, 1976). This mechanism allows for not paying taxes twice on the same income.

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 thresholds represent an important element in personal tax planning. Law 83 of June 13, 2023, ratified the new agreement in Italy.

Operational details

Practical and economic advantages of transferring to Lentate for the border crossing

The choice to reside in Lentate while working in Ticino has tangible advantages, especially in economic and housing terms. The cost of living in Lombardy remains on average lower than that of the Canton of Ticino: rents, services and food are generally less expensive in the territory of Lentate than in Ticino centres of the same size (Lugano, Mendrisio).

In addition, the border worker resident in Italy benefits from the Swiss social security system (AVS/AI) through the contributions withheld on the Swiss paycheck, accumulating years of contribution that translate into a pension upon reaching retirement age. The LPP (Occupational Pension Fund, second pillar) is mandatory for those who exceed a salary threshold: the Swiss employer pays contributions that the employee can redeem or transfer to facilities in Italy in the event of termination of the employment relationship.

The possibility of option on LAMal (Swiss health insurance) represents an additional advantage: the border worker with G Permit has the right to choose to insure with a Swiss insurer, potentially advantageous if the income is high, or to keep the insurance in Italy. Adult deductibles in Switzerland start at CHF 300 and can go up to CHF 2,500, depending on your chosen coverage.

Disadvantages and considerations

Useful planning tools

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

Key points

Procedure and checklist for moving to Lentate as a cross-border worker

Deciding to live in Lentate and work in Ticino requires a series of administrative and contractual steps. The logical sequence begins with signing the employment contract with a Ticino company (or accepting the offer if the move involves a job change).

Step 1: Permit G

Obtain the Permit G from the competent Swiss authorities (Migration Office – SEM/Cantonal Migration Section). This authorizes the cross-border worker to reside in Italy and work in Switzerland. The Ticino employer, except in very rare normative exceptions, must submit the work authorization request on behalf of the employee. Processing times are generally 4–8 weeks. The G permit is valid for five years with a contract of more than one year; with a shorter contract it lasts as long as the contract.

Step 2: INPS Registration and Tax Residence

Once hired, the cross-border worker must register with INPS as a direct foreign worker. At the same time, they must notify the Italian Revenue Agency of their Italian tax residence (Lentate sul Seveso) and foreign (Swiss) income for inclusion in the 730 or 770 form (income tax return). The deadline for the annual declaration in Italy is generally June 30 of the year following the year in which the income was received.

Step 3: Health Insurance (LAMal)

Within the first month of employment in Switzerland, the cross-border worker must choose whether to remain insured with an Italian insurer (continuity with the Italian national health system) or opt for Swiss LAMal. Choosing LAMal involves enrolling with one of the health insurance funds recognized by the Ticino canton; this option is irreversible for the first year.

Step 4: AVS/LPP Contributions

Contributions for Swiss social security (AVS/AI/IPG) and professional pension (LPP) are automatically deducted from the paycheck. The cross-border worker does not need to take additional actions, except to verify the correct application of the rates (e.g., 5.3% AVS for the employee). It is advisable to request an annual AVS statement to verify the accrual of contributions.

Documents to Prepare

A cross-border worker moving to Lentate should gather: valid passport and/or identity card; residence certificate from the local authority of Lentate; employment contract with the signature of the Ticino employer; Italian tax code; criminal record extract (casellario giudiziario); for LAMal: insurance number (if already in Switzerland) or request for new enrollment; copy of the Permit G request (when submitted).

Deadlines and Annual Calendar

For EU/EFTA citizens, a G permit is valid for five years with an indefinite contract or one lasting more than a year; with a contract lasting more than three months but less than a year, it is valid for the contract period. For work of up to three months in a calendar year, no G permit is required; the online notification procedure applies.

When It Really Pays to Move: Decision Elements

The choice to live in Lentate rather than in Ticino is advantageous when the housing cost differential (rent, mortgage) between Lentate and Ticino is significant (at least 25–30% monthly savings); commuting is sustainable (easy access to border crossings); the family situation is stable (spouse with a job in Italy, children enrolled in Italian schools); the income is such that it does not fully utilize Italian tax deductions (thus the Swiss tax credit covers most of the taxation).

Conversely, moving to Lentate becomes disadvantageous if commuting is particularly burdensome, if the spouse works in Ticino (increases transportation costs), or if there is an intention to purchase a house in Lentate with a mortgage: in this case, the tax advantage could be eroded by the costs of interest and property management in Italy.

To verify in detail whether moving to Lentate is advantageous in your specific case, use the salary calculator of Frontaliere Ticino: this tool simulates the monthly and annual net income considering Swiss taxation, Italian tax credit, AVS/LPP contributions, and LAMal choice. You can thus compare different income scenarios and tax deadlines.

For more information on transportation costs and public transport in Ticino, as well as information on border crossings, consult the dedicated resources.