Living in Varano Borghi, working in Ticino: border guide (cross-border guide)

Context

In brief

• G permit required to work in Ticino as a commuter from Varano Borghi
• Double taxation avoided: withholding tax only in Switzerland from 1 Jan 2024
• New commuters: €10,000 annual exemption on employment income
• LAMal mandatory; G commuters can opt for Italian insurance

Key facts

• What: G permit for EU commuters employed in the Canton of Ticino
• When: New Cross-Border Workers Agreement effective from 1 January 2024
• Where: Ticino-Italy border (Varano Borghi, province of Varese)
• Who: EU/EFTA citizens residing in Italy and employed in Switzerland
• Amount: €10,000 annual exemption (new commuters); €7,500 exemption (old commuters, transitional regime 2024–2033)

From 1 January 2024, the New Cross-Border Workers Agreement between Switzerland and Italy, signed on 23 December 2020, has come into force. This agreement introduces a significant change for those, like commuters living in Varano Borghi, who work in the Canton of Ticino. The central aspect is the management of withholding tax: Switzerland applies this tax to the employment income of commuters, but Italy avoids double taxation through the tax credit in the CE section of the 730 declaration. In other words, the tax is withheld only in Switzerland, and in Italy, you receive a credit to offset it.

For new commuters (those who started working in Ticino after 17 July 2023), an annual exemption of €10,000 on employment income is provided. This means that on this portion of earnings, the Swiss withholding tax does not apply. Old commuters—those who were already working in Ticino before 17 July 2023—benefit from a €7,500 exemption in the transitional regime until 2033.

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Operational details

Is the G permit convenient? Economic analysis

The decision to move to Varano Borghi to work in Ticino depends on various economic factors. The G permit offers advantages in terms of cost of living—living in border Italy is generally less expensive than residing in Ticino—but it also has costs that need to be carefully evaluated.

As a cross-border worker, you are subject to Swiss AVS/AI/IPG contributions (5.3% of your salary as an employee) and other pension contributions. Health insurance coverage (LAMal) is mandatory in Switzerland; however, as a G cross-border worker, you have the option: you can remain insured with your Italian insurance or opt for Swiss LAMal. Find out how it works for cross-border workers and what your options are.

In Italy, you must also pay INPS contributions to your Italian employer (if you work part-time in Italy) or you are covered by Swiss contributions if you work exclusively in Ticino. The Convention between Italy and Switzerland of December 9, 1976 coordinates pension schemes to avoid contribution gaps.

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Key points

Checklist: how to become a cross-border worker in Ticino

If you decide to move to Varano Borghi and work in the Canton Ticino as a cross-border worker G, here are the main steps.

Step 1: Ensure you have a job offer. The G permit is granted on a contractual basis: your employer must offer an employee role, and you must have a written proposal before applying for the permit.

Step 2: Apply for the G permit at the Sportello Migrazione (SEM) of the Canton Ticino or at the competent office of your municipality of residence in Italy (in Lombardy, it is usually the Migrazione Service of the province of Varese). The application form asks for personal information, employer data, and the proposed salary.

Step 3: Register your address in Varano Borghi. You must have an actual residence in Italy. This implies a rental contract or ownership, and a registration with the municipality of Varano Borghi.

Step 4: Register with INPS as a cross-border worker. In Italy, communicate your status as a cross-border worker to INPS. Even if you work exclusively in Switzerland, you must be registered in the INPS system to coordinate the contribution periods.

Step 5: Choose your health insurance. Within 30 days of starting work, choose whether to keep your Italian LAMal or subscribe to a Swiss LAMal. Communicate your choice to your employer.

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