Living in Malesco, working in Ticino: practical guide (cross-border guide)

Context

In a nutshell

• Malesco accessible from the Brogeda and Gaggiolo passes towards Ticino.
• Tax at source withheld only in Switzerland; Italian tax credit resets double taxation.
• New Frontier Agreement in force from 1 January 2024 protects income and contributions.

Key facts

• What: Preferential tax regime for Italy-Switzerland border workers
• When: New Agreement in force from 1 January 2024
• Where: Ticino-Ossola border, Ossola Valley
• Who: Frontier G Permit holders
• Convention: Signed on 9 December 1976

Those who decide to move to Malesco to work in Ticino have access to a consolidated regulatory framework that protects income and social contributions. The Convention between Italy and Switzerland of 9 December 1976 was strengthened by the New Frontier Agreement, which entered into force on 1 January 2024 (on the basis of the signature of 23 December 2020 and Italian ratification by Law 83 of 13 June 2023).

The key element is the tax at source: in Switzerland it is withheld only once, directly in the paycheck by the employer. In Italy, there is no parallel taxation thanks to the tax credit mechanism, which allows you to recover in the 730 model what has already been paid in Switzerland. This eliminates the historical risk of double taxation. The Ticino employer communicates monthly to the Federal Tax Administration (AFC) the amount withheld for each border employee, creating an administrative trace that

Operational details

Border Crossings and Travel Times

Malesco is not directly connected by a main road border crossing, but it is located a few minutes away from the Brogeda and Gaggiolo border crossings, which offer direct access to the Ticino region. These represent the natural axes for those who work in the Lugano or Bellinzona provinces. Travel times from Malesco to Lugano, passing through the border crossings, typically range from 45 to 75 minutes, depending on traffic and customs stops. Peak periods (morning 7-9 am, afternoon 5-7 pm) can add 20-30 minutes. During strikes or work at the border crossings, travel times are significantly prolonged, making advance planning of commuting necessary.

Contributions and Social Security

A crucial issue for the border worker is affiliation to Swiss social security systems. A Ticinese dependent worker automatically pays into AVS/AI (first pillar, approximately 5.3% as a dependent burden) and LPP (second pillar, 7-18% depending on age and employer). These contributions are also taken into account for Italian old-age pension purposes, if the border worker has years of contribution in the Italian system. It is essential to preserve contribution certificates to request coordination of social security benefits in the event of Italian return.

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Key points

Procedure for Transfer and Compliance

The process of transferring to Malesco to work in Ticino is articulated in well-defined and non-concurrent phases:

Phase 1 - G Permit Contact the municipality of residence in Malesco and the Swiss SEM (State Secretariat for Migration) to initiate the procedure for recognition of the G Permit. This document is essential: without it, it is not possible to work legally in Switzerland. The G Permit is personal and valid for the employer nominated in the contract. The procedure typically takes 4-8 weeks and involves checks on the professional and housing situation.

Phase 2 - Italian Fiscal Registration If you do not already have an Italian tax code, register with the Italian Revenue Agency. This code is necessary for the annual tax return (model 730) and the tax credit mechanism. Registration takes place online through the Agency's website or at the local office, with processing times of 1-2 weeks.

Phase 3 - Opening a Swiss Bank Account Most Ticino employers require a Swiss bank account for salary payment. It is advisable to choose an institution with branches accessible from the border area (Chiasso, Mendrisio, Lugano). Some institutions offer specific accounts for border workers with reduced fees and competitive EUR/CHF exchange rates.

Phase 4 - AVS/AI Registration Once the employment relationship is confirmed, the employer's compensation fund proceeds with automatic registration in the AVS/AI system. It is essential to keep the annual contribution certificates received from the fund, especially if the border worker has already contributed years to the Italian system, to avoid gaps in the future pension calculation.

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