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

Context

In a nutshell

• Corridor borders Switzerland: short journey times to Ticino
• New Frontier Agreement in force from 1 January 2024
• Old frontier workers: exemption up to €7,500, transitional regime 2024–2033
• Tax at source withheld only in Switzerland, no double taxation

Key facts

• What: New Agreement between Italy and Switzerland on border workers
• When: Signed on 23 December 2020, effective from 1 January 2024
• Where: Canton of Ticino and Italian border regions
• Who: Border workers, employers, AFC/ESTV, Revenue Agency
• Amount: Old frontier workers exemption €7,500; new frontier workers exemption €10,000
• Threshold: 17 July 2023 for the definition of "old border crossing"
• Reference: Law 83 of 13 June 2023 (Italian ratification)
• Convention: Italy-Switzerland Double Taxation Agreement of 9 December 1976

Corrido is a small Italian town in the province of Como that lies close to the Swiss border, in a position that makes it potentially interesting for those considering commuting to the Canton of Ticino. The geographical proximity to Switzerland significantly reduces travel times compared to those who live further inland, but the mountain road network still requires a careful evaluation of the routes and means available.

For workers who cross the border on a daily basis, the tax regime for frontier workers governed by the New Agreement signed on

Operational details

How much you pay in payroll

On the Swiss side, several mandatory contributions are levied on the gross salary of the border worker. AVS/AI/IPG is worth 5.3% at the employee's expense, while AD/AC (unemployment) weighs 1.1% with a ceiling of CHF 148'200. LAINF (accident insurance) varies between 0.7% and 1.5% depending on the sector, and LPP (occupational pension) starts from the age of 25 with rates between 7% and 18% depending on the age group.

On the Italian front, declared income remains subject to personal income tax, with brackets of 23% up to €28,000, 35% from €28,001 to €50,000 and 43% over €50,000. The tax credit recognized in the EC framework of 730 serves to prevent income from being taxed twice: the main taxation remains in Switzerland through the source tax.

Costs and daily life from the border

Those who reside in Corrido and work in Lugano or Mendrisiotto must balance some recurring items. LAMal health insurance is mandatory: for G-permit holders there is a right of option, and the annual adult deductible varies from CHF 300 to CHF 2,500 depending on the policy chosen. The cost of living in Ticino is on average higher than in the Italian border areas, in particular for food, rent and services, while on the Italian side the purchasing power is favoured by lower prices.

For the passes closest to the Corridor area, the options

Useful planning tools

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

Key points

What to do before starting to commute

Before accepting a job in Canton Ticino, residents of Corrido must verify several operational steps.

Required documents:

• G permit for cross-border commuters, issued by the competent cantonal authorities
• Swiss employment contract and registration with the employer
• Italian tax code and registration with the ANPR (National Registry of the Resident Population) of the municipality of residence
• LAMal insurance coverage or European equivalent

Tax obligations:

• Withholding tax is operated directly by the Swiss employer and paid to the cantonal and federal tax authorities (AFC/ESTV)
• In the Italian income tax return (Form 730), foreign income must be indicated in the CE section, entering the tax credit to avoid double taxation
• The Swiss withholding agent issues the annual salary certificate, an essential document for completing the 730 form

Timelines and deadlines:

• The G permit must be requested before starting the work activity
• The Italian income tax return follows the ordinary deadlines (Form 730 within the terms set by the Italian Revenue Agency)
• For old cross-border commuters, the transitional regime with a €7'500 exemption applies from 2024 to 2033

Useful tools on the site

To simulate the fiscal impact of the switch to the new regime, the cross-border commuter salary calculator is available, which allows you to estimate the net pay starting from the Swiss gross salary, taking into account AVS, AD, LAINF, LPP and withholding tax deductions. For a comparison between the cost of living in Ticino and Italy, the dedicated page on the cost of living Ticino vs Italy is also useful, especially for those considering transferring their residence.

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