Living in Maccagno with Pine and Veddasca as a border worker (cross-border guide)

Context

In a nutshell

• Maccagno with Pine and Veddasca is a strategic choice for those who work in Ticino.
• The New Frontier Agreement entered into force on 1 January 2024.
• Taxation provides for tax at source in Switzerland with tax credit in Italy.
• The management of the LAMal is necessary for border health care.

Key facts

• What: Cross-border transfer and work
• When: From 1 January 2024 (New Agreement)
• Where: Maccagno with Pine and Veddasca / Canton of Ticino
• Who: Frontier workers (new and old)
• Tax: At source in Switzerland (tax credit in Italy)
• Health: LAMal Right of Option

The move to Maccagno with Pino and Veddasca represents a housing solution for many workers who work daily in the Canton of Ticino. Since 1 January 2024, the regulatory landscape has changed following the entry into force of the New Frontier Agreement, signed on 23 December 2020 and ratified in Italy with Law 83 of 13 June 2023. This legislation defines the rules for the taxation of income from work, which is subject to tax at source directly in Switzerland, avoiding double taxation thanks to the tax credit provided by the Revenue Agency in the EC framework of 730.

The regulatory framework for residents in Maccagno

For those who choose this location, it is essential to distinguish between the position of the 'old' border guards, active before 17 July 2023, and the 'new' border guards. The former benefit

Operational details

The practical analysis of living in Maccagno with Pine and Veddasca requires a careful assessment of the costs and benefits associated with commuting. The cost of living, although lower than in Ticino, must be balanced with transport costs and mandatory wage deductions. Swiss contributions include AVS/AI/IPG (5.3% paid by the employee), AD/AC (1.1% up to a ceiling of CHF 148,200), LAINF (between 0.7% and 1.5%) and LPP, which varies from 7% to 18% depending on the age group for workers over 25.

Health and Social Security Management

A crucial aspect for those residing in Maccagno is the management of health coverage. Border workers have the right of option for LAMal, the Swiss health insurance. Adult deductibles range from CHF 300 to CHF 2,500. It is essential not to confuse the health system with a generic 'health tax', as it is a compulsory insurance managed according to the directives of the FOPH/BAG. Financial planning must also include an understanding of Italian personal income tax, with staggered rates of 23%, 35% and 43% depending on income, calculated on the taxable amount after applying the credit for taxes already paid in Switzerland. To deepen the payroll simulation, it is advisable to use a dedicated calcolatore. The stability of the CHF/EUR exchange rate, monitored by a comparator, plays a decisive role in the real purchasing power of the

Useful planning tools

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

Key points

For those deciding to settle in Maccagno con Pino e Veddasca, the procedural process requires attention to various deadlines and bureaucratic obligations. First of all, it is necessary to regularize your status with the Municipality and properly inform yourself about the requirements set by the Revenue Agency for income tax declaration. Correctly filling out the CE section in form 730 is essential to avoid penalties and ensure proper recognition of taxes paid at source in Switzerland. Workers must keep documentary records of every payment made to AFC/ESTV.

Operational Checklist for the New Cross-Bronter

The process begins with verifying the G permit, which is necessary to work in the Canton of Ticino. Subsequently, it is essential to activate LAMal coverage within the legal deadlines, avoiding lapses or administrative sanctions. Managing the second pillar (LPP) and possibly opening a third pillar (3a) can optimize overall tax burden. The cross-border worker must also consistently monitor official communications from Swiss authorities, such as SECO for employment matters or cantonal authorities for tax changes.

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