Living in Veleso and working in Ticino as a border worker

Context

In brief

• Withholding tax applied in Switzerland
• New Cross-border Workers Agreement in force from 1 January 2024
• 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.
• Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).

Key facts

Cross-border Workers Agreement: signed 23/12/2020, in force 01/01/2024 Italian ratification: Law 83 of 13/06/2023 Double Taxation Convention: 09/03/1976 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.

The move to Veleso for those working in the Canton of Ticino requires analysis of precise tax and administrative rules. The current regulatory framework is defined by the New Cross-border Workers Agreement, signed on 23 December 2020 and entered into force on 1 January 2024, following Italian ratification via Law 83 of 13 June 2023. This agreement redefines the taxation parameters for those residing in Italy and working in Switzerland.

Tax structure for residents of Veleso

For a worker residing in Veleso, the withholding tax on employment income is withheld in Switzerland. Italy avoids double taxation through the application of a tax credit, which is managed in the CE section of the 730 tax return. This mechanism is consistent with the Convention for the Elimination of Double Taxation signed between Italy and Switzerland on 9 March 1976.

The administration of these taxes is entrusted to the Federal Tax Administration (AFC/ESTV) at the federal level and to the respective cantonal administrations. It is important to note that entities such as the Federal Statistical Office (BFS) or the Federal Social Insurance Office (UFAS) have no competence in setting tax rates, but they respectively handle statistical surveys and social security. The cross-border worker who chooses Veleso as their residence must therefore coordinate their obligations between the Swiss AFC and the Italian Revenue Agency for the optimisation of the tax credit.

Operational details

Analisi pratica e scenari

La scelta di vivere a Veleso comporta l'applicazione di regimi fiscali differenti a seconda della data di inizio dell'attività di frontaliere. I cosiddetti 'vecchi frontalieri', ovvero coloro che possedevano già tale status prima del 17 luglio 2023, beneficiano di un regime transitorio che copre il periodo 2024–2033, con un'esenzione di 7.500 euro. 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.

Impatto sulle trattenute e previdenza

Il salario percepito in Ticino è soggetto a diverse trattenute previdenziali obbligatorie. I contributi AVS/AI/IPG ammontano al 5.3% a carico del dipendente, mentre l'assicurazione disoccupazione (AD/AC) incide per l'1.1%, con un tetto massimo di 148.200 CHF. La previdenza professionale (LPP) varia tra il 7% e il 18% a seconda della fascia d'età, partendo dai 25 anni, mentre la LAINF oscilla tra lo 0.7% e l'1.5%.

Per quanto riguarda la salute, i frontalieri con permesso G hanno diritto d'opzione per l'assicurazione malattia LAMal. Le franchigie per gli adulti variano da 300 a 2.500 CHF. Questo sistema permette di gestire la copertura sanitaria in modo flessibile, a seconda delle necessità individuali e della preferenza tra il sistema svizzero o quello italiano.

Confronto con la fiscalità italiana

Il reddito prodotto in Svizzera, una volta detratte le imposte alla fonte, deve essere confrontato con le aliquote IRPEF italiane per l'eventuale integrazione o per il calcolo del credito d'imposta. Le aliquote attuali prevedono il 23% fino a 28.000 euro, il 33% tra 28.001 e 50.000 euro, e il 43% per le quote eccedenti i 50.000 euro. Un frontaliere che risiede a Veleso deve quindi monitorare costantemente il proprio reddito complessivo per evitare sorprese in fase di dichiarazione dei redditi, utilizzando strumenti di calcolo fiscale per simulare il netto reale.

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

Action guide for relocation

Anyone who decides to move to Veleso to work in Ticino must follow a precise procedure to regularise their administrative and tax position. The first step is obtaining the G permit, which certifies cross-border worker status and allows access to the LAMal option rights and the application of the cross-border tax regime.

Operational steps for the cross‑border worker

1. Request for the G Permit: the application must be submitted to the competent authorities of the Canton of Ticino to formalise the cross‑border employment relationship. 2. Choice of health insurance: decide whether to join the Swiss LAMal (selecting a deductible between 300 and 2,500 CHF) or retain Italian coverage. To explore the costs, you can consult the guide on LAMal e CMI. 3. Pension configuration: verify that AVS and LPP contributions are correctly paid in the payroll according to the applicable age brackets. 4. Tax management: when filing the income tax return in Italy, enter the Swiss income data in box CE of the 730 form to claim the tax credit and neutralise double taxation.

Logistical considerations and costs

Commuting from Veleso to the Ticino production centers requires planning travel times and transportation costs. It is advisable to assess the impact of travel expenses on net salary, considering car use and the possible purchase of a highway vignette. For a detailed comparison between residence expenses in Italy and the cost of living in Switzerland, it is suggested to use the comparator on the cost of living.

To accurately calculate the impact of AVS, LPP deductions and withholding tax on your gross salary, the advice is to use our salary calculator.