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

Context

In a nutshell

• Caglio is a few km from the Ticino border, access to the Chiasso-Brogeda passes
• Withholding tax in Switzerland, tax credit in Italy (no double taxation)
• New Frontier Agreement in force from 1 January 2024
• Swiss contributions: AVS/AI/IPG 5.3%, plus AD/AC, LAINF, LPP

Key facts

• What: Border worker resident in Caglio (Bergamo), employed in Ticino
• When: Agreement in force from 1 January 2024 (signed 23 December 2020)
• Where: Caglio province Bergamo; passes Chiasso, Brogeda; work Ticino
• Who: Border employees with G Permit
• Tax: Withholding tax in Switzerland; EC framework tax credit of 730 in Italy
• Deductions: AVS/AI/IPG 5.3% employee, AD/AC 1.1%, LAINF 0.7–1.5%, LPP 7–18%
• Convention: Italy-Switzerland 9 December 1976 (double taxation)

Caglio is a municipality in the province of Bergamo, in Varesotto, a few kilometres from the Ticino border. For those considering relocation while retaining employment in Ticino, the situation is governed by precise international agreements between Switzerland and Italy. The New Frontier Agreement, signed on 23 December 2020 and in force from 1 January 2024, has significantly changed the conditions for frontier workers, distinguishing between 'old frontier workers' (who already possessed the status before 17 July 2023) and 'new frontier workers' (acquired from the date indicated onwards).

For those who live in Caglio and work in Ticino, the tax regime is clear and unambiguous: the

Operational details

Cost of Living and Financial Planning

Those who reside in Caglio benefit on average from a lower cost of living than those who already live in Ticino. Renting homes, groceries, household utilities and local services in Lombardy are usually less expensive. This advantage is significant on an annual basis and represents one of the main reasons for the choice of transfer for many border crossers. However, commuting costs reduce part of the benefit: fuel for the car, vehicle maintenance, Swiss cartoons for access to cantonal roads, parking in the main Ticino centres (Lugano, Bellinzona) and wear and tear on the vehicle due to daily journeys weigh on the personal budget. An honest analysis must include these factors to assess the net benefit of the transfer.

In addition to regular commuting, occasional spending changes should be considered: international driving licence, car insurance adapted to Swiss regulations, potential fines for road traffic offences, and vehicle reliability costs (overhauls, tyres) in mountain and winter climates.

Healthcare: LAMal and coverage options

All border workers on Leave G have the right of option for Swiss health insurance (LAMal, Health Insurance Act). LAMal is not a 'health tax', but a mandatory insurance that covers medical, hospital, pharmaceutical and rehabilitation benefits. Adult deductibles range from

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

Transfer Procedure and Permit G Request The first step is to ensure you have a valid employment contract with a Swiss employer (in Ticino or another canton). Without a contract, it's impossible to apply for Permit G. Once the contract is signed, the employer must submit the request to the State Secretariat for Migration (SEM). In parallel, register with the municipal registry of Caglio to prove stable residence in Italy; this document is essential for the permit application. SEM will communicate processing times; usually, Permit G is issued within 2-4 weeks. During this waiting period, you can already work in Switzerland with the contract and application receipt in hand. Essential documents: valid ID (Italian ID card or passport), signed employment contract, declaration of residence in Caglio issued by the Italian municipality, and receipt of registration with Swiss local authorities (if required by the canton). We recommend being assisted by a specialized accountant for cross-border work to verify that the documentation is complete and compliant with SEM's current procedures. ### Taxation: Declaration, Model 730, and Refunds As a cross-border worker, your Italian income declaration (model 730 or Unico for more complex situations) must include the foreign income earned in Switzerland. The CE section of the declaration is specific for income produced in countries with a tax convention: Switzerland is listed in the convention of December 9, 1976. In this section, declare the gross amount of Swiss income and the tax paid in Switzerland for withholding; the Revenue Agency automatically calculates the tax credit, avoiding double taxation regulated by the convention. Many cross-border workers are entitled to refunds (rebates of overpaid taxes). The refund is calculated by comparing the tax paid in Switzerland (withholding at source) and that due in Italy, calculated according to progressive IRPEF rates (23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000). Entitlement to a refund depends on the net salary, allowed Italian deductions, and applied fiscal progressivity. A specialized cross-border work accountant analyzes the individual case and requests the refund from the Revenue Agency using the correct procedure. Refunds are usually processed within 6-12 months from the official request. ### Health Planning: LAMal versus INPS Within the first month of starting work in Switzerland, you must formally decide whether to join LAMal or remain in the Italian system (SSN via INPS). The choice must be informed and based on your real needs. LAMal offers direct access to Swiss hospitals, clinics, and doctors, with generally short waiting lists for emergencies and specialist visits; however, monthly premiums (around CHF 300-500 for healthy adults) and franchises (CHF 300-2,500) can be significant. The Italian SSN offers coverage at a lower cost (through INPS contributions already paid in the pay slip), but longer waiting times for certain specialist services and the need to return to Italy for complex hospitalizations. We recommend evaluation based on: frequency of medical service use, presence of chronic pathologies, number of dependents, and facilitated access to medical facilities near your residence and workplace. ### Support Tools and Online Calculators Use Frontaliere Ticino's salary calculator to simulate your monthly net income with Swiss deductions (AVS, LPP, LAINF, AD/AC applied automatically). Enter the gross salary amount, the canton of work (Ticino), and the reference year: the system automatically applies updated federal and cantonal rates, providing an accurate estimate of what you will actually receive monthly. This tool is essential during the salary negotiation phase with the employer. For comparing the cost of living between Caglio and the main Ticino centers (Lugano, Bellinzona, Locarno), consult the cost of living guide Ticino versus Italy border. This will help you plan a realistic monthly budget and evaluate the actual advantage of the transfer considering all variables. Finally, for specific questions on taxation, refunds, procedures, and health matters, contact a specialized cross-border work accountant or refer to the consultancy services at the Italian and Swiss Chambers of Commerce (ASCOM Ticino, CCIAA Bergamo).