Living in Brenna and working in Ticino as a border worker

Context

In a nutshell

• Tax at source: withheld in Switzerland.
• New 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.
• Double taxation agreement: 9 March 1976.

Key facts

• Frontier Agreement: 1 January 2024
• 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.
• Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).
• IT-CH Convention: 9 March 1976
• AVS/AI/IPG: 5.3%
• LPP: 7-18%

Brenna is a border municipality that offers a strategic location for those who wish to work in Canton Ticino. The management of daily commuting is based on the use of the border crossing, facilitating access to the Ticino production centres. For those who move to Brenna, the tax aspect is decisive: the tax at source is withheld in Switzerland, while Italy avoids double taxation through the application of a tax credit in the EC framework of model 730.

Updated tax legislation

The regulatory framework has been profoundly modified by the New Frontier Agreement, signed on 23 December 2020 and in force since 1 January 2024, ratified in Italy with Law 83 of 13 June 2023. This agreement distinguishes between old and new frontier workers. Old frontier workers, i.e. 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

Operational details

Practical analysis for the cross‑border worker

Choosing to live in Brenna and work in Ticino entails several practical implications. The first aspect is the cost of living, which varies significantly between Italy and Switzerland. A cross‑border worker residing in Brenna can optimise their savings thanks to the cost difference between the two countries.

Calculation of net salary and social security contributions

To understand the real impact on net salary, it is essential to analyse Swiss social security contributions. The AVS/AI/IPG deductions amount to 5.3% borne by the employee. Unemployment insurance (AD/AC) is set at 1.1% with a maximum ceiling of CHF 148,200. Moreover, the LAINF (accident insurance) describes the LAINF rate between 0.7% and 1.5%.

Regarding occupational pension (LPP), contributions vary from 7% to 18% depending on the age band, starting from 25 years. This two‑pillar pension system is fundamental for the worker's long‑term financial planning. In Italy, IRPEF is applied with progressive rates: 23% up to €28,000, 33% between €28,001 and €50,000, and 43% above €50,000.

Health management and insurance

A critical aspect is health insurance. LAMal is the mandatory health insurance, not a tax. Cross‑border workers with a G permit have an option right to choose between Swiss insurance or that of their country of residence. Deductibles for adults are set between CHF 300 and CHF 2,500. Health management is the final piece to complete the relocation planning to Brenna for those working in Ticino.

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

Operational guide for those moving to Brenna

For those who decide to live in Brenna and work in Ticino, the regularization procedure is clear and defined. The first step is obtaining the G permit, which allows working in Switzerland while residing in Italy. Once the employment contract is obtained, the Swiss employer will arrange registration with the migration office of the Canton of Ticino.

Step-by-step for regularization

1. Signing the Swiss employment contract. 2. Requesting the G permit from the Ticino migration authorities. 3. Opening a Swiss bank account for salary payment in CHF. 4. Verifying the choice of health insurance LAMal or CMI. 5. Declaring income in Italy through the 730 form, indicating Swiss income in section CE to obtain the tax credit.

Tools for financial planning

For those moving to Brenna, it is essential to constantly monitor the CHF/EUR exchange rate to maximize savings. Using calculation tools is essential to understand the impact of tax rates and withholding tax. To correctly assess net income, it is recommended to use a calculator to estimate the withholding tax and AVS and LPP social security contributions.

The organization of daily commuting to Brenna requires special attention to travel times and traffic at the border crossings. Careful planning of tax and social security management ensures that living in Brenna and working in Ticino is a sustainable long‑term choice. For an accurate estimate of your net salary, consult our calculator.