Living in Porlezza and working in Ticino as a border worker

Context

In a nutshell

• New Frontier Agreement applied since 1 January 2024.
• Tax at source applied in Switzerland.
• Tax credit in 730 to avoid double taxation.
• 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.

Key facts

• What: Porlezza-Ticino cross-border commuting
• When: From 1 January 2024 (new agreement)
• Where: Italian-Swiss border, Porlezza-Lugano area
• Who: Federal Tax Administration (FTA)
• 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.

Commuting between Porlezza and the Canton of Ticino is a well-established housing choice for many workers, attracted by the geographical proximity and opportunities offered by the Swiss labour market. Since 1 January 2024, the tax regime governing this activity has changed following the entry into force of the new agreement between Italy and Switzerland, signed on 23 December 2020 and ratified in Italy with Law 83 of 13 June 2023. The legislation establishes that the taxation of income from employment takes place in Switzerland through withholding tax, managed by the Federal Tax Administration (AFC) and the cantonal authorities. To avoid double taxation, workers must assert the tax credit in the EC framework of the Italian tax return (form 730).

Key Regulatory Aspects

The current discipline distinguishes between old and new frontier workers. Who

Operational details

The management of daily life between Porlezza and Ticino requires special attention to health coverage and social security. Every border worker, as a worker in Switzerland, enjoys the right of option regarding LAMal, the Swiss compulsory health insurance, which should not be confused with a generic health tax. The choice between the Swiss and the Italian system is a crucial step. Adult deductibles usually range from CHF 300 to CHF 2,500, directly affecting the monthly premium. You can learn more about the options available through our portal dedicated to the LAMal.

Income management and contributions

In addition to insurance, Swiss pay is subject to social security deductions (AVS/AI/IPG) and the second pillar (LPP). The LPP, mandatory from the age of 25, provides for rates between 7% and 18% depending on the age group. These deductions, added to the tax at source, determine the monthly net. Those who work in Ticino must constantly monitor their payroll, using tools such as calcolatore fiscale for an accurate estimate of taxes. The difference between the cost of living in Porlezza and that in the Canton of Ticino remains a significant competitive factor. The monitoring of the costo della vita makes it possible to plan family expenses correctly, considering that the income is received in Swiss francs while the main expenses take place in Italian territory. The stability of the

Useful planning tools

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

Key points

For those who decide to embark on the border crossing path living in Porlezza, the first action is to verify the correct documentation for the release of the G permit. The release of residence and work permits is regulated by the competent cantonal and federal authorities (SEM). Once employed, it is necessary to regularize one's position with INPS and the Revenue Agency regarding taxation in Italy. The income tax declaration procedure requires particular attention to the CE section of the model 730 form for the tax credit. Do not neglect the planning of the path: traffic to the border crossings, such as Brogeda or secondary passages, can significantly affect working life quality. It is useful to stay updated on road conditions and border crossing maps to optimize daily travel times.

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Article 1(237–238) of Italian Law No. 213/2023 does not apply indiscriminately to all cross-border workers. It covers: (a) Italian residents who work and stay in Switzerland and use the Italian SSN; (b) frontier workers under Article 9(1) of the Italy–Switzerland Agreement whose income is taxable only in Switzerland and who exercised the legal right to choose health insurance; and (c) dependants of those two categories. Paragraph 238 sets a progressive 3–6% share of net Swiss salary, with a €30 minimum and an ordinary €200 maximum for each month worked from 2024. The cap may be doubled in cases of omitted payment or omitted communication specified in Article 1(100) of Law No. 207/2024. The Region of residence sets the rates and procedure each year.