Living in Porto Valtravaglia and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• Residence: Porto Valtravaglia on the Lombard shore of Lake Maggiore
• Work destination: Canton Ticino for frontier workers
• Tax regime: Withholding tax in Switzerland with elimination of double taxation in Italy
• Regulatory framework: New Borderers Agreement entered into force on 1 January 2024

Key facts

• What: Transfer and management of cross-border work
• When: Agreement signed on 23 December 2020 and in force from 1 January 2024
• Where: Porto Valtravaglia and Canton Ticino
• Who: Frontier workers, AFC and Revenue Agency
• Amount: Deductible of 10,000 euros for new frontier workers and exemption of 7,500 euros for old frontier workers

The municipality of Porto Valtravaglia is a strategic position for those who choose to establish their residence in Italy while carrying out their daily professional activity across the border, in the Canton of Ticino. The geographical proximity to the Swiss border allows frontier workers to evaluate this territory for their lifestyle, balancing the local cost of living with the employment opportunities offered by the Swiss market. From a tax point of view, employee income received in Switzerland is subject to source tax in the Swiss State, while Italy adopts the tax credit mechanism through the EC framework of model 730 to avoid double taxation. The Agreement between Italy and

Operational details

The choice of living in Porto Valtravaglia implies a careful evaluation of daily commutes and logistics related to the daily commute to Ticino work centers. The location on Lake Maggiore requires considering the available road and rail connections to reach border crossings and main locations in the Canton of Ticino. Workers must deal with the management of their Swiss salary envelope, which includes various mandatory deductions established by federal and cantonal laws. Among these are contributions to old-age and social insurance such as AVS, AI, and IPG with a 5.3% rate charged to the employee, unemployment insurance AD/AC at 1.1% applied up to a maximum of 148,200 Swiss francs, LAINF coverage for accidents included between 0.7% and 1.5%, and LPP contributions for professional pension that vary from 7% to 18% based on the age range starting from 25 years.

Health and pension aspects for the worker A key element in the life of a border worker is health coverage and the management of health insurance. The legislation provides that border workers with a G permit may exercise the right to opt between the Swiss health system through LAMal and assistance in Italy. For those who choose LAMal, the deductibles for adults usually vary between 300 and 2,500 Swiss francs. It is essential to carefully plan every economic and pension aspect, checking the contributions paid and the impact on your net income. To analyze your income in detail and understand the incidence of fiscal and social deductions, you can use the dedicated calculator, useful for simulating taxation and planning family budget.

Useful planning tools

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

Key points

To start working in Ticino, it is necessary to respect specific administrative procedures and tax deadlines. Before starting cross-border work, it is essential to verify the possession of necessary documents, such as the G work permit issued by competent Swiss authorities, including the SEM and the SECO for labor market-related aspects. In annual administrative management, cross-border workers must submit their tax returns in Italy by correctly filling out tax forms to declare income earned in Switzerland and apply the tax credit that avoids double taxation, if necessary, by availing themselves of the support of professionals or the documentation provided by the INPS and the Italian Revenue Agency.

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