Living in Venegono and working in Ticino: tax guide 2024 (cross-border guide)

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024 after signature on 23 December 2020
• New frontier workers: deductible €10,000 per year; old frontier workers: exemption €7,500 with transition until 2033
• Tax at source withheld ONLY in Switzerland; LAMal mandatory with option right for G border workers

Key facts

• What: New tax regime for Italy-Ticino border workers with new deductibles and rates
• When: Effective from 1 January 2024 (Italian ratification: Law 83 of 13 June 2023)
• Where: Canton Ticino (Switzerland) and Venegono Superiore (province of Varese, Italy)
• Who: Frontier workers residing in Italy and working in Switzerland
• Excess amount: €10,000 per year for new frontier workers; €7,500 for old frontier workers before 17 July 2023

Those who reside in Venegono Superiore and choose to work in Ticino enter a deeply renewed regulatory framework. The New Frontier Agreement, signed on 23 December 2020 and entered into force on 1 January 2024, has transformed the taxation and contribution rules for thousands of Italian commuters who cross the Swiss border daily towards the Canton of Ticino. Law 83 of 13 June 2023 ratified the commitments signed in Italy, making the new regime definitive and applicable to all new border workers from January 2024 onwards.

The choice to live in Italy, where the cost of living remains lower, and to work in Switzerland, where wages are structurally

Operational details

The tax and contribution structure for a border worker who lives in Venice and works in Ticino is divided into three levels: Swiss source tax, social contributions, and health insurance.

Tax at source and contributions: the actual weight of the paycheck

The following are withheld from the gross amount agreed with the Ticino employer, before the net payment to the border agent:

• AVS/AI/IPG: 5.3% to be paid by the employee
• AD/AC (unemployment insurance and salary continuation): 1.1% (capped at CHF 148,200 annual salary)
• LAINF (accident insurance): 0.7-1.5%, generally borne by the employer
• LPP (occupational pension): 7–18% depending on the age group (from 25th year onwards)

These amounts reduce the gross declared for Swiss federal tax purposes. However, the Ticino employer does not withhold any "source tax" (so-called "withholding tax") because the border worker, although resident in Italy, is subject to the border regime G, which provides for taxation in the canton where he works. The calculation of the pillowcase and cantonal tax therefore takes place on the income already reduced by social contributions, and Ticino applies its own progressive tax rates, which vary with the annual net income.

In Italy, the border worker records Swiss income and benefits from the tax credit for taxes already paid in Switzerland. Italian income tax has progressive rates: 23% up to

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

For the cross-border worker who decides to live in Venegono Superiore and work in Ticino, the concrete steps to take follow a logical sequence: obtain the G permit, register with Swiss authorities, notify income to the Italian INPS, and manage annual tax filing obligations.

Phase 1: Registration and G Permit

The first step is registration with the SEM (State Secretariat for Migration), obtaining the G permit (cross-border worker). This must be requested before starting work in Ticino: the employer provides a "letter of employment confirmation" that the cross-border worker presents to the Italian consulate or directly to the cantonal migration office. The G permit is tied to the employer: if you change companies, the permit must be updated. Its validity is 5 years, renewable.

Phase 2: AVS Registration, Pension, and LAMal

Once the permit is obtained, the employer automatically registers the worker with the AVS (Compensation Office for Swiss Social Insurance), the company's LPP fund, and the Italian INPS is automatically notified via tax declarations. For LAMal, the cross-border worker receives a communication from the Ticino Canton (DSS, Department of Health) with information on approved insurance funds and the deadline (generally 30 days) to exercise the right of choice. If choosing Swiss LAMal, proceed with registration at the selected company; if maintaining Italian INPS, communicate the choice via the appropriate form and keep the documentation.

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