Living in Bardello and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024
• Tax at source: withheld only in Switzerland, no double taxation
• Old frontier workers: annual exemption €7,500 until 2033
• Mandatory G leave with annual tax return

Key facts

• What: Access to the Ticino labour market as border worker category G
• When: From 1 January 2024 (New Frontier Agreement)
• Where: Canton Ticino, Chiasso, Brogeda, Gaggiolo, Ponte Tresa passes
• Who: Residents of the province of Varese with permanent residence
• Tax: Federal/cantonal withholding tax only in Switzerland, Italian tax credit avoids double taxation

Those who reside in Bardello with Malgesso and Bregano and work in Canton Ticino enter the Swiss labour market with the status of G category border worker. The New Frontier Agreement, which entered into force on 1 January 2024, regulates the tax and contribution regime for all frontier workers between Italy and Switzerland. A crucial aspect concerns the place of withholding tax: the tax at source is withheld exclusively in Switzerland on the worker's paycheck, not in Italy. This mechanism avoids double taxation thanks to the tax credit in the Italian model 730 (CE framework), where the declared income can benefit from an offsetting compared to the taxes already paid in Switzerland. Italy recognizes Swiss taxation as primary for income from work carried out in Swiss territory.

Regime

Operational details

Frontier Paycheck: What's Changing

The paycheck of a frontier worker in Ticino includes withholdings for Swiss contributions that are unparalleled in Italian wages. The AVS/AI/IPG contributions (pension, disability, unemployment) amount to 5.3% borne by the employee, while the employer pays additional contributions. In addition to these, contributions for accident insurance (LAINF) are added in the amount of 0.7-1.5% and, for employees aged 25 and over, contributions for the second pillar (LPP) ranging from 7% to 18% depending on the age group. The total withholding on the Swiss paycheck is significant, but must be understood in the context of the Italian tax credit right. When the border worker completes the Italian 730 form declaring the gross income received in Switzerland (converted into EUR at the average annual exchange rate), he applies Italian federal taxes on the basis of the IRPEF progression (23% up to €28,000, 35% between €28,001 and €50,000, 43% over €50,000 for the first national tier). However, thanks to the tax credit in the EC framework, taxes already paid in Switzerland are deducted from the Italian tax due, effectively eliminating double taxation.

Practical scenario: check impact

Let's imagine a hypothetical scenario: a border worker with a gross salary of CHF 5,000 per month in Ticino suffers Swiss withholdings for about CHF 400–450 per month (AVS/AI, LAINF, LPP, insurance),

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

Procedure: how to start working as a border worker

Step 1: Enter into an employment contract with a Ticino company. Before any administrative step, you must have a binding offer of employment from a Swiss employer in Ticino. The contract must specify tasks, remuneration, duration (determined or indeterminate) and start of work. This document is essential for applying for the G Leave at the SEM.

Step 2: Apply for G Permit. The Ticino employer submits an application for authorization to the SEM attaching the employment contract, the border worker's master extract, passport/ID, and documentation on the economic stability of the company. Processing times vary, but typically the SEM communicates the outcome within 4-8 weeks. While waiting, the border worker CANNOT start work in Switzerland.

Step 3: AVS registration and LAMal registration. Once the G Permit has been obtained, the employer proceeds with the mandatory registration with the Federal Statistical Office (BFS) for the issue of the AVS number (Swiss social insurance number), and the choice of health insurance (Swiss option or maintenance of Italian coverage). The AVS number is communicated to the border agent within a few days and must be provided to the employer for payroll processing.

Step 4: Communication to the Italian INPS. Before the first payment of salary, the border worker communicates the new activity to INPS

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