Mandello del Lario: 2024 Ticino border guide

Context

In brief

• Permit G: Italian residence, work in Ticino (within 30 km of the border).
• New Cross-Border Workers Agreement: effective from January 1, 2024 for new cross-border workers.
• 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.
• Taxed in Switzerland, double taxation avoided with Italian tax credit.

Key facts

• What: Cross-border worker residing in Italy and employed in Ticino
• When: From January 1, 2024 (New Cross-Border Workers Agreement)
• Where: Mandello del Lario (Lecco) and Canton Ticino
• Who: Cross-border workers admitted with permit G
• 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.

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The New Cross-Border Workers Agreement, signed on December 23, 2020 and ratified by Italy through Law 83 of June 13, 2023, came into force on January 1, 2024. For those residing in Mandello del Lario and working in Ticino, this agreement substantially transforms the tax and contributory regime.

Tax advantages: exemption and exemptions

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. This means that the first €10,000 of earnings in Ticino are not subject to Swiss withholding tax.

Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).

For example, a new cross-border worker with an annual gross income of €45,000 in Ticino will have the withholding tax calculated on €35,000 (45 minus 10 of exemption), not on €45,000. This significantly reduces the Swiss tax burden from the first year.

Withholding tax and double taxation mechanism

A crucial aspect for the cross-border worker from Mandello is understanding how taxation works. The withholding tax on employment income is withheld in Switzerland from the paycheck. Italy DOES NOT withhold taxes on income earned in Switzerland, pursuant to the Convention against Double Taxation Italy-Switzerland signed on March 9, 1976.

The Convention establishes that the right to tax employment income belongs to the State where the work is performed, i.e., Switzerland. Italy, consequently, grants a tax credit in the 730 form (CE section) to avoid the cross-border worker paying taxes twice on the same income. Therefore, a cross-border worker does not pay health insurance (LAMal) twice, nor taxes both in Switzerland and Italy.

Permit G: the key to working from Mandello

Mandello del Lario is located in the province of Lecco, on Lake Como, a few kilometers from the main Italo-Swiss border crossings: Brogeda (Varese-Como-Ticino), Chiasso, and Gaggiolo. This geographical proximity makes Mandello a natural base for those wishing to work in Lugano, Mendrisio, Bellinzona, or other Ticino locations while maintaining Italian residence.

Permit G is the Swiss federal authorization (administered by the State Secretariat for Migration, SEM) that allows Italian citizens residing in a border area to work in Switzerland. It is territorially limited: work is permitted within a radius of about 30 km from the border line, a perimeter that covers the entire Canton Ticino. The procedure for obtaining permit G involves submitting the application to the Population Office of the Italian province (for Mandello, the Province of Lecco or the Prefecture) in coordination with the Swiss SEM.

Operational details

What changes concretely for the cross-border worker from 2024

The New Cross-Border Agreement is a step forward for those who live in Mandello and work in Ticino. Before 2024, a cross-border worker with an annual income of €45,000 in Ticino was subject to withholding tax on the entire amount. 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. You can check your net monthly income with the salary calculator.

Pension contributions: AVS, LPP and pillars

The cross-border worker from Mandello pays pension contributions in Switzerland according to the Swiss three-pillar system. AVS (old-age and survivors' insurance): the employer pays 5.3% of the gross salary as an employee contribution. The cross-border worker accumulates credits towards the Swiss pension, regardless of nationality.

LPP (occupational pension): from the age of 25, the employer pays for the LPP (second pillar) a contribution ranging from 7% to 18% depending on age. It is a form of pension savings, different from the Italian INPS.

Double payment: the cross-border worker also pays INPS contributions in Italy at 9.19% on the amount that does not exceed the exemption limits. The New Agreement limits this double contribution for new cross-border workers. Learn more about the pension system.

LAMal: health insurance

The cross-border worker must subscribe to a health insurance (LAMal) with a Swiss insurer. Deductibles range from CHF 300 to CHF 2,500 per calendar year. A cross-border worker with a low deductible pays higher premiums, while one with a high deductible pays less. LAMal covers healthcare services in Ticino and, through bilateral agreements, also in Italy for emergencies.

Practical procedure: how to move from Mandello

An Italian citizen residing in Mandello who intends to work in Ticino must: 1. Obtain a job offer from a Ticino employer. 2. Apply for a G permit at the Population Office of the Province of Lecco in coordination with the company. 3. The Swiss SEM authorizes the permit. 4. Subscribe to a Swiss health insurance (LAMal). 5. Present themselves on the first day of work with identity documents, Italian tax code, and Swiss insurance number.

Useful planning tools

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

Key points

Next steps: from Mandello to work in Ticino

If you are considering moving from Mandello del Lario to work in Ticino, these are the concrete steps that guide the process.

Pre-move checklist

Months 1-2: Research and offer — Consult job search portals that publish positions in Ticino. Identify the company and obtain a written job offer. Verify the proposed gross salary and the sector (some sectors have different contributions).

Month 3: G permit application — Contact the Population Office of the Province of Lecco (your place of residence in Mandello). Fill out the G permit application form together with the Ticino company. Provide a copy of the job offer and your personal data (passport, Italian tax code). Submit the application coordinating with the company and the SEM.

Month 4: SEM authorization — The SEM examines the application and decides (usually in 4-6 weeks). If approved, the SEM issues the G permit and communicates it to the company and to you. The permit is valid for one year and is renewable.

Month 5: Health insurance — Register with a Swiss insurer for LAMal before starting work. Choose the deductible and coverage plan. Receive the insurance card.

Month 6: First day of work — Present identity documents, Italian tax code, G permit, and health insurance number. The employer will initiate procedures for registration with AVS/LPP/Swiss accident insurance. You will receive the first pay slip with withholding tax, AVS, LPP, and INPS contributions.

Essential documents

For each step of the procedure, keep handy: valid Italian passport or identity document, Italian tax code, job offer signed by the Ticino company, proof of residence in Mandello (utility bill, rental/ownership contract), certificate of registration with Italian INPS (optional but recommended).

Tools to monitor your situation

After the move, use these tools to check your tax and pension situation: Salary calculator simulates the net monthly amount based on the proposed gross and deductible. Tax return: at the end of the year, fill out the 730 form in Italy, including Swiss income in the CE section and tax credit. Contact INPS/Revenue Agency: for checks and clarifications on double taxation.

Make an informed decision

Living in Mandello del Lario and working in Ticino is a conscious choice that requires understanding of tax and pension rules. The New Frontier Workers Agreement has improved the situation, but it is essential to verify your specific income scenario. 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. This simple step allows you to make an informed decision before moving.