Living in Lurago Marinone and working in Ticino as a border worker

Context

Summary

• Withholding tax at source in Switzerland
• New Agreement in force since January 1, 2024
• Tax credit to avoid double taxation
• Management via Agenzia delle Entrate and INPS

Key Facts

• What: Cross-border commuting between Italy and Switzerland
• When: New Agreement effective from January 1, 2024, ratified by Law 83 of June 13, 2023
• Where: Lurago Marinone and Canton Ticino
• Who: Italian cross-border workers and tax authorities AFC, MEF, Agenzia delle Entrate
• 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 Lurago Marinone represents a strategic housing solution for many workers who commute to Switzerland every day for professional reasons. Choosing to reside in this area of the Como province offers a well-connected base close to the roads leading to the border crossings and main highway arteries. Cross-border commuting requires careful planning of daily travel, evaluating actual peak-hour travel times and the impact on the family budget. For those working in Canton Ticino while maintaining residency in Lurago Marinone, the reference regulatory framework is based on the provisions established by the bilateral framework between Italy and Switzerland, which regulates the taxation of employment income earned across the border. The Double Taxation Convention, originally signed on March 9, 1976, governs fiscal relations between the two States, alongside the New Agreement on cross-border workers signed on December 23, 2020, and in force since January 1, 2024. This regulatory evolution directly affects the management of the Swiss pay slip and declaration obligations in Italy through the 730 tax return model, using the CE section for the application of the tax credit aimed at avoiding double income taxation. To learn more about withholding tax calculations and assess the impact on net pay, you can consult the online tax calculator.

Operational details

Moving to Lurago Marinone to pursue a career as a border worker in Ticino involves a series of practical assessments related not only to travel logistics, but also to the management of compulsory social security and health coverage. Employees serving in Swiss territory are subject to the payment of social security contributions managed by the competent bodies such as the AVS, the AI and the IPG, with a rate to be paid by the employee set at 5.3 percent. Added to these are contributions for AD and AC unemployment amounting to 1.1 percent up to the threshold of 148200 Swiss francs, as well as coverage for LAINF accidents ranging from 0.7 to 1.5 percent and compulsory occupational pension LPP, whose rate varies from 7 to 18 percent based on age groups from 25 years. From the point of view of health care, border workers with a G permit fall under the right of option regime, being able to choose between the LAMal system and the Italian National Health Service, taking into account the deductibles for adults between 300 and 2500 francs. The comparison between the cost of living in Italy and wages received in Swiss francs requires a careful analysis of exchange rate fluctuations and monthly fixed expenses. To monitor currency trends and optimize cash flows, it is useful to consult the comparatore cambio for conversions between CHF and EUR. Income taxes in

Useful planning tools

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

Key points

Navigating the career path as a cross-border worker departing from Lurago Marinone requires compliance with a series of bureaucratic requirements and knowledge of the operational procedures to follow from the very first day of employment. Before starting work in Ticino, it is essential to verify possession of the necessary documentation, including the G permit issued by competent authorities such as the State Secretariat for Migration SEM. The administrative management of the employment relationship involves constant verification of the items on the Swiss payslip, which shows tax deductions and social security contributions managed by cantonal and federal offices. For those who commute daily by car toward customs crossings such as Brogeda or Gaggiolo, it is important to calculate vehicle management costs, the purchase of the Swiss motorway vignette, and parking management in Ticino work areas. Those who need a detailed overview of transport expenses can consult the section dedicated to commuting car costs to better plan road travel. 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 receive support in filling out the tax return and managing tax documents, you can use the tax return service for cross-border workers.

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.