Living in Canzo and working in Ticino: border guide (cross-border guide)

Context

In brief

• New Cross-Border Workers Agreement in effect from January 1, 2024: exemption €7,500 (old cross-border workers), allowance €10,000 (new)
• Withholding tax deducted only in Switzerland, no double taxation
• Permit G required: application to SEM within 8 days of start date
• 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
• Exemption amount: €7,500 annually (old cross-border workers), €10,000 (new)

Canzo, in the province of Como, represents a concrete choice for those who want to work in Ticino while maintaining their Italian border residence. The New Cross-Border Workers Agreement, which came into effect on January 1, 2024, introduced a more advantageous tax regime for cross-border workers: old cross-border workers (those before July 17, 2023) benefit from an annual exemption of €7,500, while new cross-border workers have an allowance of €10,000. 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 exclusively 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.

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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.

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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. Register with the SEM within 8 days of starting: The Permesso G application must reach the SEM (State Migration Office) within one week of the actual start date of work. 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.

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