Living in Cadegliano-Viconago and working in Ticino

Context

At a glance

• The Article 9 transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the income limit referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4.

Key facts

• What: Resident cross-border commuting
• When: In force from 01/01/2024 (Law 83/2023)
• Where: Cadegliano-Viconago (IT) - Canton Ticino (CH)
• Who: Workers with G permit
• The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax.

Cadezliano-Viconago represents one of the most strategic residential choices for those intending to pursue a career in the Canton Ticino. Located just a few kilometers from the Ponte Tresa and Cremenaga border crossings, this municipality in the Varese province offers a balance between quality of life and logistical accessibility. The governing regulation for residents in this area is the New Frontier Workers Agreement, signed on December 23, 2020, and officially enacted on January 1, 2024. This date marks a clear distinction between two different tax regimes, regulated nationally by Law 83 of June 13, 2023, which ratified the agreement between Italy and Switzerland.

The Strategic Role of Cadegliano-Viconago

The geographical location of Cadegliano-Viconago allows access to major operational centers in the Lugano area in extremely short times. For a frontier worker, living in this area means managing the home-work commute with greater flexibility compared to those residing in centers farther from the border. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). The new Agreement regime has applied since 1 January 2024. It is crucial to monitor border crossing waiting times to optimize daily commutes to companies in Ticino.

Operational details

Financial management for individuals living in Cadegliano-Viconago and working across the border requires a precise understanding of deductions and taxes. Regarding Swiss social security, various rates administered by the FCA/ESTV and cantonal administrations are applied to the employee's gross salary. The AHV/DI/IP contributions amount to 5.3% borne by the employee, plus unemployment insurance (UC/UCB) at 1.1%, calculated on a maximum ceiling of CHF 148'200. A fundamental element is the second pillar, namely the LPP, whose rate varies between 7% and 18% based on the employee's age bracket, starting from age 25.

Tax and social security management

The withholding tax on employment income is applied in Switzerland. To avoid double taxation, Italy applies the tax credit mechanism through the CE section of the 730 form, as provided for in the Convention signed on March 9, 1976. Italian IRPEF rates follow specific brackets: 23% up to €28,000, 33% between €28,001 and €50,000, and 43% for income above that.

In addition to social security aspects, cross-border workers must consider health insurance management. Based on the right of choice, it is possible to opt between the Swiss LAMal system or remain in the Italian system. Those choosing LAMal can select deductibles ranging from CHF 300 to CHF 2,500 for adults. For an accurate estimate of actual net income, it is recommended to use a net salary calculator updated to current regulations. Accurate tax planning, including proper completion of the tax return, is essential for individuals living in Cadegliano-Viconago operating under the new tax agreement.

Key points

Daily commuting from Cadegliano-Viconago to the economic centers of the Canton of Ticino, such as Lugano or Mendrisiotto, is facilitated by the geographical proximity. Those who choose to reside in this municipality can count on reduced travel times, especially if the workplace is located in the Lugano district. One of the first procedures to deal with is the request for the G permit, the document issued by the Swiss authorities (SEM) which authorizes cross-border work activity. It is useful to consult a permit comparator to understand the differences between the various types of living and working.

Logistics and bureaucratic steps for cross-border workers

For those who work in Ticino, Cadegliano-Viconago offers the advantage of being in an area considered 'border' for the purposes of bilateral agreements. This status guarantees access to tax breaks provided for municipalities located within 20 km of the border. The procedure for new cross-border workers involves registration in the Italian registry and communication of the employment relationship to the competent bodies such as INPS. In terms of mobility, in addition to using their own vehicle, many workers take advantage of the interchange car parks at the Ponte Tresa crossing to use the FLP train towards Lugano, reducing traffic stress.

📊 Checklist for the new cross-border worker in Cadegliano-Viconago:

• Verification of the validity of the employment contract and request for permit G.
• Choice of health insurance (LAMal) within the deadlines established by the FOPH/BAG.
• Opening a Swiss bank account to credit your salary in CHF.
• The threshold of 10,000 euros of the art. 4 of Law 83/2023 concerns exclusively income from employment carried out abroad, in a border area or in a neighboring country, continuously and exclusively, by people resident in Italy, referred to in the art. 1, paragraph 175, of Law 147/2013; it is not a general exemption nor an exemption from Swiss withholding tax.

To optimize your financial situation, it is essential to stay updated on developments in the Ticino job market and tax deadlines. Using digital tools for calculating taxes and tracking the CHF/EUR exchange rate can make a significant difference in your family budget. Get started now by simulating your paycheck with our tax calculator.