Living in Canzo and working in Ticino: border guide

Context

In brief

• 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.
• Withholding tax deducted in Switzerland, with an Italian tax credit for new cross-border workers
• In Ticino the G permit application must reach the Migration Office before work starts.
• AVS/LPP/LAMal guaranteed from the first day of work in Ticino

Key facts

• What: Cross-border workers tax regime with New Agreement
• When: In effect from January 1, 2024 (Agreement signed December 23, 2020)
• Where: Canton Ticino and border municipalities
• Who: Italian G cross-border workers, managed by SEM/SECO
• 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.

Canzo, in the province of Como, represents a concrete choice for those who want to work in Ticino while maintaining their Italian border residence. This change marks an important transition from the previous regime.

The Italian ratification of the Agreement took place with Law 83 of June 13, 2023. The withholding tax on employment income is deducted in Switzerland during the employment relationship — Italy completely avoids double taxation by applying a tax credit in the CE section of the 730 declaration. This means that the cross-border worker will pay taxes on their income only once.

Subscribing to Permit G

Anyone who decides to live in Canzo and work in Ticino must apply for Permit G with the State Secretariat for Migration (SEM). The application must be submitted within 8 days of the actual start date of the employment relationship in Switzerland. The SEM evaluates the request based on the availability of a confirmed job position by the Ticino employer and Italian registration documents. The G permit is valid for five years with a contract of more than one year; with a shorter contract it lasts as long as the contract.

In terms of contributions, Old-Age and Survivors' Insurance (AVS), Disability Insurance (AI), Unemployment Insurance (AD), and Accident Insurance (LAINF) start from the first day of work. The Ticino employer makes the salary deductions according to the Swiss federal rates: AVS/AI/IPG at 5.3% for the employee, AD and AC at 1.1% (with maximum contributions based on CHF 148,200), LAINF from 0.7% to 1.5% depending on the sector.

Deadlines and Dynamics of the Agreement

The transitional regime of the Agreement runs from January 1, 2024, to December 31, 2033. “Old frontier workers” qualify under Article 9 only if they met the tax requirements and worked in Graubünden, Ticino or Valais during the stated period; covered employment income is taxable exclusively in Switzerland. There is no general €7,500 allowance; the €10,000 figure in Article 4 of Law No. 83/2023 applies only to income referred to in Article 1(175) of Law No. 147/2013. After 2033, the transitional regime ends, and the definitive provisions, not yet fully specified in the current communication, will take effect. The Convention between Italy and Switzerland on double taxation, signed on March 9, 1976, remains the legal foundation that ensures the cross-border worker is not taxed twice on the same income.

Operational details

Distances, connections and commuting times from Canzo

Canzo is located in the province of Como, in a position halfway between the provincial capital and the Ticino border. Choosing to live in Canzo requires careful consideration of travel times to the workplace in Ticino — a critical factor for those who must repeat the journey daily. The main access routes from the Como area to the main Ticino crossings (Brogeda, Gaggiolo, Chiasso) involve journeys that vary depending on the final destination in Ticino (Mendrisio, Lugano, Bellinzona, Locarno).

The commuter living in the province of Como must consider the Italian road infrastructure and Swiss motorways (A2) to reach the workplace. Traffic jams at the crossings, especially during peak hours, can affect actual transit times. Each commuter must personally verify the route with their employer, calculating the actual travel time. A practical consideration is the choice of transportation: private car, public transport, or combined options. Using a car involves fuel costs, maintenance, parking in Ticino, and compliance with Swiss regulations.

Cost of living and personal taxation

Canzo offers an overall lower cost of living compared to directly Swiss areas. The purchase of homes, local services (utilities, insurance, dining) follows Italian border prices, generally lower than those in Ticino. This difference is one of the main reasons why many commuters choose to live in Italy while maintaining Swiss income.

However, the commuter must consider additional expenses. Health insurance (LAMal), mandatory in Switzerland from the first day of work, has cantonal Ticino costs that vary with annual premiums. LAMal is not a health tax but a mandatory insurance with adult deductibles ranging from CHF 300 to CHF 2,500 depending on the chosen policy. The commuter with a G permit has the right to choose the Swiss insurer.

On an annual basis, the Italian IRPEF applies to the gross income earned in Switzerland according to progressive rates: 23% up to €28,000, 33% for the range €28,001–€50,000, 43% over €50,000. The Italian tax return (730) is completed by indicating in the CE section the Swiss tax credit, thus compensating for the withholdings from the Ticino salary.

Advantages and disadvantages of choosing Canzo

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 disadvantages include: non-negligible daily travel times due to distance and possible traffic jams at the crossings; vulnerability to temporary border closures (strikes, accidents, weather emergencies); direct commuting costs (fuel, car maintenance, parking); double regulation (Italian for residence, Swiss for work taxation and social contributions); need to manage two tax declarations (730 in Italy, registration with Ticino cantonal authorities).

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

Checklist: how to move and start working as a cross-border commuter

1. Verify the job offer and start date: The Ticino employer must provide an official letter of employment with the start date. The SEM requires this documentation for the Permesso G application.

2. For EU/EFTA citizens, the application and notification of a new job must reach the cantonal migration authority before the new work begins. Delays may result in administrative consequences.

3. Collect Italian documentation: Identity document, municipal residence certificate, certificate of pending charges. Local administrations in Canzo provide these documents.

4. Choose Swiss health insurance (LAMal): The cross-border commuter must enroll with a Swiss health insurance company based in Ticino. The choice of policy (and deductible: CHF 300–2,500) depends on the personal risk profile and available budget.

5. Open a Ticino or Italo-Swiss bank account: Many Ticino banks offer accounts dedicated to cross-border commuters with multilingual services. Alternatively, banks in the province of Como with Swiss branches provide integrated services.

6. Register with the Italian Tax Agency: Notify the change in tax situation (foreign income) to the competent territorial office. In the annual model 730, you will declare the gross Swiss income in the CE section and the tax credit.

7. Check for any additional cantonal registrations: Some Ticino employers (particularly public ones or in regulated sectors) require registrations with specific cantonal authorities.

Available Tools and Support

The salary calculator of Frontaliere Ticino allows you to simulate the net monthly income based on the gross Swiss income, applying AVS, AD, LAINF deductions, and estimating the Ticino cantonal tax. This tool is essential for planning your personal budget before moving.

For clarifications on the Permesso G procedure, consult the complete guide to residence permits on our site. If you have doubts about LAMal, choosing the insurer, or option rights, read the health insurance guide. To plan the second Swiss pension pillar and the third pillar, consult the supplementary pension guide.

Final Considerations Before Definitive Move

Before signing the lease in Canzo or starting work in Ticino, carefully evaluate: the personal impact of daily commuting is sustainable for you, considering travel hours in winter months? If you have dependents, how does the distance affect family management time? Does the Ticino job offer long-term professional growth? Will you be able to renegotiate the salary in line with cantonal levels?

A final consideration: the transitional regime of the New Agreement runs until December 31, 2033. After that date, definitive provisions not yet fully specified will come into effect. Check annually for official communications from SECO, SEM, and the Tax Agency for updates on exemption amounts and procedures.

Use the paycheck calculator to verify the expected net income and plan your personal budget, and consult the refunds section if you believe you are entitled to tax refunds for years prior to the move.

Article 1(237–238) of Italian Law No. 213/2023 does not apply indiscriminately to all cross-border workers. It covers: (a) Italian residents who work and stay in Switzerland and use the Italian SSN; (b) frontier workers under Article 9(1) of the Italy–Switzerland Agreement whose income is taxable only in Switzerland and who exercised the legal right to choose health insurance; and (c) dependants of those two categories. Paragraph 238 sets a progressive 3–6% share of net Swiss salary, with a €30 minimum and an ordinary €200 maximum for each month worked from 2024. The cap may be doubled in cases of omitted payment or omitted communication specified in Article 1(100) of Law No. 207/2024. The Region of residence sets the rates and procedure each year.