Living in Rodero and working in Ticino as a border worker

Context

In a nutshell

• Tax at source withheld in Switzerland for frontier workers
• New Frontier Agreement in force from 1 January 2024
• 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.
• Italy recognizes the tax credit to avoid double taxation

Key facts

• What: Withholding of income tax at source
• When: Effective January 1, 2024
• Where: Canton Ticino, Italy
• Who: Frontier workers with G permit
• 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.

The new agreement between Italy and Switzerland on border taxation, signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023, entered into force on 1 January 2024. This agreement replaces the previous regime and introduces significant changes for workers residing in Italy and operating in the Canton of Ticino. According to the convention, the tax at source is withheld in Switzerland, while Italy avoids double taxation by means of the tax credit to be indicated in the EC framework of declaration 730. 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. The agreement is based on the Double Taxation Convention signed on 9 March 1976, recalling that Switzerland is not a member of the EU or the EEA.

Operational details

Practical scenarios for those living in Rodero

Choosing Rodero as a residence offers logistical advantages for those who work in Canton Ticino, especially thanks to its proximity to the Brogeda crossing, one of the main points of entry between Italy and Switzerland. The distance between Rodero and Brogeda can be covered in a few minutes by car, avoiding the more frequent congestion that occurs in Chiasso or Ponte Tresa during peak hours. This translates into significant time savings, particularly appreciated by those who have strict working hours or must accompany their children to school before crossing the border. From a tax point of view, the new agreement simplifies management: it is no longer necessary to file returns in both countries, since the tax is withheld at source in Switzerland and recovered in Italy through the tax credit. 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. This mechanism is particularly useful for those who aim to establish a permanent residence in Italy while maintaining a working activity in Ticino, as it guarantees certainty on withholdings and repayment methods. In addition, the possibility of joining the second Swiss pillar (LPP) remains

Useful planning tools

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

Key points

What to do to become a border worker from Rodero

To start working in Canton Ticino as a border worker resident in Rodero, the first step is to apply for the G permit with the competent Swiss authority, which in this case is the Population Office of Canton Ticino. It is necessary to present the employment contract, a valid identity document and proof of residence in Italy, such as a recent utility bill or a family status certificate. Once the G permit has been obtained, it is essential to inform the Swiss employer so that they correctly apply the withholdings of the tax at source, including the AVS/AI/IPG, AD/AC, LAINF and LPP contributions according to the expected age groups. On the Italian side, it is advisable to contact a CAF or an accountant to correctly fill out the CE framework of form 730, where the income produced in Switzerland must be indicated in order to take advantage of the tax credit and avoid double taxation. With regard to health insurance, G border workers have the right of option between the Swiss LAMal and the Italian National Health Service: the choice must be communicated within three months of starting work in Switzerland and remains binding for one year, subject to renewal. Finally, to optimise daily travel, you can evaluate the use of the Brogeda crossing, which is often less congested than Chiasso, especially in the early hours of the morning or late at night, keeping in mind

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.