Living in Claino with Osteno and working in Ticino as a border worker
Practical guide to commuting between Claino con Osteno and the Canton of Ticino: connections, tax at source, G permits and cost of living for border crossers.
Context
In brief
- Choose Claino with Osteno for commuting to Ticino
- Taxation in Switzerland (for new cross-border workers also in Italy, with a tax credit)
- Tax rules for old and new frontier workers with dedicated franchises
- Access to the LAMal sick fund option regime
Key points
- What: Commuting and transfrontier residency
- When: Operational with the current legal framework and the New Agreement in effect from 1 January 2024
- Where: Covers Claino with Osteno and border crossings to Ticino
- Who: Italian residents working as frontier workers
- 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.
The municipality of Claino with Osteno offers a strategic residential solution for many workers who cross the border daily to reach Ticino. Living in this area of Lombardy provides a scenic landscape and geographical proximity to major Swiss working centers such as Lugano and Mendrisio. For those who choose this lifestyle, managing transfrontier work requires a thorough understanding of the current tax and social security regulations. Switzerland, which is not a member of the European Union or the European Economic Area, applies specific provisions regulated by the Convention against Double Taxation signed on 9 March 1976. The income tax on dependent employment is withheld directly in the Swiss country, avoiding double taxation in Italy through the mechanism of the tax credit managed through the CE model 730. To understand the impact of these withholdings on the net salary, it is possible to use the calculator dedicated to transfrontier remunerations.
Legal and fiscal aspects of commuting
The legal framework for workers residing in Claino with Osteno and working in Ticino is defined by the New Agreement on Frontier Workers, signed on 23 December 2020 and effective from 1 January 2024, following the Italian ratification with Law 83 of 13 June 2023. “Old frontier workers” qualify under Article 9 only if they met the tax requirements and worked in Graubünden, Ticino or Valais during the stated period; covered employment income is taxable exclusively in Switzerland. There is no general €7,500 allowance; the €10,000 figure in Article 4 of Law No. 83/2023 applies only to income referred to in Article 1(175) of Law No. 147/2013. The tax rates applied take into account the mandatory contributions in Switzerland, including the AVS, AI, and IPG with a quota of 5.3% borne by the employee, plus the unemployment insurance AD/AC fixed at 1.1% up to a salary cap of 148,200 Swiss francs. In addition, there are the LAINF coverage for accidents and professional pension contributions LPP, which vary from 7% to 18% based on age brackets starting from 25 years. The competent authorities for the definition and administration of these contributions remain the Federal Office of Taxes AFC/ESTV at the federal level and the cantonal administrations, while institutions such as the Federal Statistical Office BFS are exclusively responsible for the collection of demographic and economic data without imposing any tax.
Operational details
Daily organization and cross-border connections
Living in Claino with Osteno implies a careful planning of daily commutes to reach the workplaces in Ticino. Road connections connect the area to border crossings and major arteries such as the A2 motorway and the Lombard road network. The mobility of the border crossing requires the management of travel times, especially in the morning and evening rush hours, when the flow of vehicles to Switzerland suffers slowdowns near customs crossing points. In order to optimise the costs of travelling by car, including parking and the Swiss motorway vignette, commuters carefully evaluate the different transport options available on the territory.
Health and social security coverage for residents
A fundamental chapter for those who reside in Claino con Osteno and work in Ticino concerns the management of compulsory health coverage. Border workers in possession of the G permit fall under the right of option, which allows them to choose between the Swiss health system through LAMal and the Italian health system. Opting for LAMal means taking out health insurance with deductibles for adults of between CHF 300 and CHF 2,500. At the same time, the management of social security contributions requires the constant monitoring of payroll deductions relating to the first and second pillars
Useful planning tools
To estimate your pension strategy, use the pension planner and the pillar 3 simulator.
Key points
Operational Procedures and Compliance for Frontalier
The worker who decides to settle in Claino with Osteno to pursue a professional activity in Ticino must follow a series of precise administrative steps. The first requirement is to obtain the G work permit, whose procedure involves presenting the employment contract documentation with a Ticino company. Once the activity is started, it is necessary to monitor one's fiscal position in Italy by correctly filling out the tax return through the 730 model, including data on income from Switzerland and applying the tax credit to avoid double taxation.
Checklist of Fundamental Steps
- Verify the status of old or new frontalier based on the date of previous or subsequent to the 17 July 2023.
- Request the G permit for frontalier from the competent authorities of the Canton Ticino before the actual start of the professional activity.
- Exercise the right to opt for the LAMal sick fund within the terms provided by the current legislation.
- Keep the documentation related to taxes paid at source in Switzerland for the compilation of the CE in the 730.
To proceed with a detailed estimate of one's net salary and verify the incidence of Swiss tax and social security contributions based on the current regulations, it is possible to access the online calculator. Calculate your net salary
Frequently Asked Questions
- How is the income of a border worker living in Claino con Osteno taxed?
- Employee income tax is only withheld at source in Switzerland. Italy eliminates double taxation by recognizing a tax credit through the EC framework of model 730, applying the Italian IRPEF rates provided for the income brackets.
- Which income does the €10,000 limit apply to?
- Article 9’s 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 limit for income referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4.
- How does LAMal health insurance work for border workers from Claino con Osteno?
- Border workers in possession of the G permit have the right of option to choose between the Swiss LAMal health system and the Italian one. By choosing LAMal, the insurance provides deductibles for adults ranging from a minimum of 300 to a maximum of 2,500 Swiss francs.