Living in Pognana Lario and working in Ticino

Context

In brief

• Pognana Lario is located on the eastern shore of the Como branch of Lake Como.
• The journey to the Brogeda customs requires passing through Como.
• 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. The new Agreement regime has applied since 1 January 2024.

Key facts

• What: Living on the lake and working as a cross-border worker in Canton Ticino
• When: New Agreement valid from January 1, 2024 (Law 83 of 13/6/2023)
• Where: Pognana Lario, Province of Como and border crossings towards Chiasso
• Who: Cross-border workers with a G permit residing in the border zone
• 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.

Pognana Lario is situated along the Larian provincial road between Como and Bellagio, offering an open view of the lake and a quiet residential context. Those who choose to settle in this village to travel every working day to Canton Ticino must set their road itinerary by descending towards Como and then heading for the customs of Ponte Chiasso or the motorway at Brogeda. Travel times depend heavily on morning traffic conditions along the coastal road and in crossing the provincial capital before reaching Switzerland.

Road system and connections to the border

To reach the main work destinations in Mendrisiotto or Lugano, the classic itinerary involves leaving Pognana Lario on the SP 583 towards Como. Once past the city, the route continues towards the Brogeda crossing for the A2 motorway junction or through the city customs. During peak hours, the main bottleneck is represented by the access points to Como, where the vehicle flow from the lakeshore converges. Monitoring customs crossing times via updates on border waiting times is useful for planning early morning departures and avoiding significant delays at the border.

Operational details

Choosing Pognana Lario offers advantages in terms of tranquility and panoramic views, but requires careful evaluation of the daily commute. Compared to other municipalities in the Como belt, real estate costs for purchasing or renting can be more affordable for an equivalent surface area and panoramic view, partly offsetting road transport expenses.

Fiscal framework between Switzerland and Italy

On the tax and social security front, G-permit workers must distinguish their status based on their date of hire. The New Cross-Border Agreement, signed on 23 December 2020 and entered into force on 1 January 2024 following its ratification with Law 83 of 13 June 2023, governs the treatment between the two States, integrating the historic Double Taxation Agreement of 9 March 1976. Withholding tax on employment income is levied in Switzerland by the cantonal administration and the FTA/ESTV. In Italy, no double taxation occurs because the foreign tax credit is applied in section CE of the tax return. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. To assess the impact on net disposable income and compare housing costs, it is advisable to examine the differences with an estimate of the cross-border cost of living.

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

Those planning the transfer to Pognana Lario must carefully prepare the bureaucratic steps. The first step is to change residence at the municipal registry, promptly communicating the new territorial location to the Swiss employer for the updating of the G permit. From the point of view of Swiss social security, the paycheck includes the mandatory deductions: AVS/AI/IPG equal to 5.3% borne by the worker, AD/AC unemployment insurance at 1.1% up to the maximum of CHF 148'200, LAINF accident coverage between 0.7% and 1.5% and the second LPP pillar with scalar rates from 7% to 18% based on the age group from 25 years.

Health and tax obligations

In the health sector, border workers can make use of the right of option between the Swiss health insurance fund LAMal (with deductibles for adults between CHF 300 and CHF 2500) and the Italian health system. Annually, taxpayers required to submit the 730 or the Income form must complete the appropriate sections to calculate the personal income tax net of the sums withdrawn as tax at source, indicating the deductions due and the Swiss social security payments. The correct keeping of documents allows a smooth management of tax deadlines with the Revenue Agency. To accurately quantify the withholding tax and estimate the monthly net remuneration according to your professional classification, you can use our calcolatore stipendio frontaliere