Mariano Comense: tax guide for border workers in Ticino

Context

In Brief

• G Permit: border permit for Italy residents + Swiss work, automatic renewal as long as the employment relationship continues
• New Agreement 2024: CHF 10,000 exemption for new border workers (from 1 January 2024), exemption from Swiss taxation
• Withholding tax: paid ONLY in Switzerland, no double taxation; credit for tax recognized by Italy through the CE box of the 730 tax return
• AVS/LPP/LAMal: mandatory in Switzerland, no double registration with the Italian INPS

Key Facts

• What: G Permit (border worker) for Italian citizens residing in Italy and employed in Switzerland
• When: Request to the State Secretariat for Migration (SEM); in force from 1 January 2024 with the New Agreement
• Where: Border workers from Mariano Comense to the Canton of Ticino (Chiasso, Mendrisio, Lugano, Locarno)
• Who: Italian citizens residing within the border area (normatively up to 20 km from the border)
• Amount: CHF 10,000/year tax exemption (new border workers after 17 July 2023); CHF 7,500 for old border workers in the transitional regime 2024-2033

Operational details

Taxation: how the border tax at source works

Switzerland and Italy have a Double Taxation Convention signed on 9 March 1976. According to this, the border worker pays the tax at source ONLY in Switzerland (the Canton of Ticino and the Federal Tax Administration), not in Italy. This was already the historical regime, but the 2024 New Deal consolidated and simplified it with the €10,000 deductible.

Here's how it actually works:

• Gross: the Swiss employer calculates the gross salary (e.g. CHF 60,000 per year)
• Tax at source: the Canton of Ticino or the Federal Tax Administration (AFC/ESTV) directly withholds federal, cantonal and municipal tax. The rate depends on the canton, income and family situation.
• No double taxation: Italy DOES NOT require additional tax at source. In the EC framework of declaration 730, enter Swiss employment income, declare the tax paid in Switzerland, and the Revenue Agency recognizes the tax credit.
• Gross income up to €10,000: If your annual net income does not exceed €10,000, the New Deal exemption completely exempts this amount from taxation in Switzerland. Useful for those who work part-time or have just started.

Over €10,000, excess income is normally taxed in Switzerland at the cantonal and federal rate.

AVS, LPP, LAMal: social security and health obligations in

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

Checklist pre-trasferimento: the 7 essential steps

Before starting to look for a house in Mariano Comense and beginning work in Ticino, make sure you have everything in order. Here is the operational sequence:

1. Contact with the Swiss employer

The process starts here. The Ticinese company must present the request for authorization of occupation to the State Secretariat for Migration (SEM) and to the cantonal economic office. You CANNOT do it alone; it is the administrative responsibility of the employer.

2. Identity and domicile documents

Make sure you have a valid Italian passport (not just the identity card—Swiss people require a passport for the G Permit). If you already have confirmed domicile in Mariano Comense, collect the proof (rental contract, bank transfer or property, bills, municipal registration).

3. G Permit request

Once the employer has obtained clearance from SEM, you present the documents to the Mariano Comense town hall. The release usually occurs within weeks of presentation.

4. Swiss social insurance (AVS/LPP) enrollment

The employer will inform you of the AVS enrollment number assigned (employee number), which you will use for all communications with Switzerland. The LPP (company pension fund) is managed by the company itself; you will receive specific documentation on contributions, rights, and pension.

5. Health insurance choice (LAMal vs INPS)

If you choose to switch to a Swiss LAMal, contact a Swiss insurance company directly or ask the employer for a recommended list. If you remain with Italian INPS, explicitly inform the employer that you will not subscribe to a Swiss LAMal—it is a right of option that you must declare in writing. Evaluate costs and geographical coverage: LAMal is comprehensive in Ticino/Switzerland; INPS is more economical if you anticipate mostly Italian healthcare.

6. Swiss bank account (optional but recommended)

It is not mandatory, but most employers have agreements with Ticinese banks. Opening an account simplifies salary receipt and contribution payments. You can also remain with an Italian account, but it will incur more fees for international CHF→EUR transfers.

7. Italian tax return (730 with CE form)

By May 31 of the following year to that of work (or until June 30 with a CAF/professional), you present the 730 tax return with the CE form dedicated to foreign income. In the form, insert the Swiss gross income, the tax paid in Switzerland, and your AVS employee number. This form allows the Italian Revenue Agency to recognize the tax credit and calculate any refunds or supplements due.

Advantages and disadvantages of the choice

Advantages

Significantly higher salaries compared to Italy (typically +20–40% for the same positions in Lombardy). Tax savings with the €10,000 exemption and the New Agreement, which makes administrative management less complex than in previous years. Robust Swiss social insurance (LPP) that guarantees a more solid pension compared to the INPS system. No obligation to relocate permanently: you can remain a resident in Italy, visit family and friends. The CHF currency tends to maintain its strength; if you manage to save in francs, you protect your purchasing power from euro inflation.

Disadvantages

The cost of living in Ticino is significantly higher than in Lombardy (housing, food, fuel, Swiss vignette). Daily commuting (variable distances depending on the border crossing and work destination). Car wear (fuel, maintenance, Swiss vignette, potential tolls). Double bureaucracy: Italian tax returns + Swiss taxes, although the New Agreement has simplified them. Potential problems with the healthcare system: if you choose Swiss LAMal and need medical care in Italy, expenses may not be covered without coordination between the systems. Currency exchange: if the franc strengthens, your purchasing power in Italy (house, holidays, property) decreases.

Tools and resources for border workers

Don't tackle everything alone. Consult an Italian CAF or tax consultant experienced in border workers for the 730 tax return, refund calculation, and management of the 1976 Convention. For the Swiss side, the employer usually activates an internal HR service that guides you on AVS/LPP/LAMal and answers questions about the G Permit.

Use the salary calculator of Frontaliere Ticino to estimate your net income after Swiss taxes and AVS/LPP contributions. This helps you plan a realistic budget before transferring. For questions about LAMal and healthcare coverage, consult the health insurance or contact Swiss recognized insurance companies directly. Remember: the right of option for G Permit holders is explicit—if you choose to remain INPS, you must inform the employer in writing and not subscribe to a Swiss LAMal.