Living in Maslianico and working in Ticino as a border worker

Context

In a nutshell

• New border agreement applied since 1 January 2024.
• taxation in Switzerland for 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.
• Obligation of LAMal health insurance for border workers G.

Key facts

• What: New border tax regime
• When: From 1 January 2024
• Where: Italian-Swiss border (Ticino)
• Who: Federal Tax Administration
• Amount: Deductible 10,000 euros (new frontier workers)

The life of the border worker who chooses to reside in Maslianico is regulated by the recent regulatory provisions that have redefined the cross-border employment relationship between Italy and Switzerland. The new agreement, signed on 23 December 2020 and fully operational from 1 January 2024, introduces structural changes for those who cross the border on a daily basis to reach their workplace in Canton Ticino. The regulatory framework, which is based on the Italian ratification of Law 83 of 13 June 2023, replaces the previous treaties and organically regulates the taxation of employee income.

The tax framework and the agreement

Taxation takes place in Switzerland (for new cross-border workers also in Italy, with a tax credit) through the source tax, an institution managed by the AFC, the Federal Tax Administration. Italy, by virtue of the mechanisms provided to avoid double taxation, allows the worker to benefit from the tax credit through the

Operational details

Operational analysis of commuting and contributions

The worker residing in Maslianico and commuting daily to Ticino must deal with a Swiss remuneration structure that includes mandatory withholding at source. Swiss contribution rates, managed by competent entities such as SUVA for accident insurance or pension funds for old-age insurance, affect the gross salary. Specifically, the dependent worker pays a quota for AVS/AI/IPG equal to 5.3%, to which is added 1.1% for AD (unemployment insurance) on an annual salary up to 148,200 francs. Social protection is completed by LAINF (accidents, with variable rates between 0.7% and 1.5%) and the second pillar, LPP, which varies between 7% and 18% depending on the age group, applied from 25 years of working age.

LAMal health insurance

One of the most significant decisions for those living in Maslianico concerns health coverage. As a border worker (G permit), there is the right to opt between the Italian and Swiss healthcare systems (LAMal). Opting for LAMal means subscribing to a health insurance policy that offers different levels of deductible, usually ranging from 300 to 2,500 francs for adults. This choice must be carefully evaluated since, once exercised, returning to the Italian system is limited. The management of pension and contributions is therefore a central element in the family's economic planning, which must integrate these withholdings with Italian taxation (IRPEF), which follows the 23% to 28,000 euro, 33% to 50,000 euro, and 43% above this threshold. Correct management of these financial flows passes through constant verification of the documentation issued by the Swiss employer and the correct declaration of income in Italy through the dedicated calculator tax calculator.

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

Procedures and checklist for cross-border workers

Managing your work position requires precise attention to annual obligations. First of all, it is necessary to constantly keep your G work permit updated, which certifies your status as a cross-border worker. For those who start working in Ticino, the procedure involves opening a bank account in Swiss francs to receive the salary, thus minimizing the costs related to currency exchange; in this regard, the comparison using a comparator can be useful. The tax return in Italy must be managed with care to avoid errors in completing the EC form, where the tax credit deriving from taxes already paid at source in Switzerland is inserted. For those who wish to optimize their pension position, the third pillar 3a represents an integrative solution, which can be analyzed using specific planning tools.

Practical advice for everyday life

Daily commuting involves managing non-negligible variables, such as traffic at the main crossings. Although Maslianico is well located, it is advisable to constantly monitor traffic conditions. Travel time planning must include the management of documents always ready for any customs checks. It is advisable to maintain a digital archive of each pay slip and annual salary certificates, necessary for completing the Italian tax return. Please remember that tax rates and social security contributions are defined exclusively by the Swiss federal and cantonal authorities (AFC), not by health insurance companies or other statistical bodies such as the BFS. For any doubts relating to the calculation of the net pay slip, we recommend consulting the calculator available on the portal, which allows you to simulate the impact of social withholdings (AVS, LPP, LAINF) on the gross salary, offering a clear vision of the actual income net of the tax and social charges envisaged by the current agreement.