Living in Lentate and working in Ticino: border crossing (cross-border guide)

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
• New Border Workers Agreement 2024: exemption €7.500 (old border workers) or €10.000 (new)
• 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.

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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 Permit G is valid for one year (automatic renewal if employment continues).

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

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