Moving to Maccagno from border crossings: driving for and against

Context

In a nutshell

• Maccagno is a few minutes from the Zenna pass towards the Canton of Ticino.
• The New Tax Agreement 2020 is in force from 1 January 2024.
• Net differences between 'old' and 'new' border crossers for taxation and deductibles.

Key facts

• What: Transfer of residence for cross-border work
• When: From 1 January 2024 (new tax regime)
• Where: Maccagno with Pine and Veddasca (VA)
• Who: Revenue Agency and AFC/ESTV
• 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.

Maccagno con Pino and Veddasca is one of the most strategic destinations for those who decide to pursue a career as a border worker in Canton Ticino, especially for those who work in the district of Locarno or Bellinzona. Located on the eastern shore of Lake Maggiore, this municipality in the province of Varese offers immediate access to the Zenna pass, drastically reducing travel times compared to other towns more distant from the border. However, the choice to reside in this location involves a series of essential regulatory and tax assessments, dictated by the New Frontier Agreement signed on 23 December 2020 and ratified by Law 83 of 13 June 2023.

The logistics of commuting from Maccagno

From a logistical point of view, the municipality extends over a territory that includes several mountain villages in the Veddasca Valley and lakeside areas such as Pino. For a worker with permesso G, the proximity to Switzerland is the advantage

Operational details

Fiscal and Social Security Analysis for Cross-Border Workers

The current regulatory framework is defined by the Double Taxation Convention of March 9, 1976, and the recent agreement in force since January 1, 2024. For a cross-border worker residing in Maccagno, the withholding tax on employment income is deducted in Switzerland. To avoid double taxation, Italy applies the tax credit mechanism through the CE section of Model 730 or Redditi PF. 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 difference directly impacts the calculation of the net paycheck (nav:payslip) and family financial planning.

Swiss Social Contributions and Pension System

Working in Canton Ticino means contributing to the Swiss social security system. The applicable rates are precise: the AVS/AI/IPG contribution is 5.3% paid by the employee, while unemployment insurance (AD/AC) applies at 1.1% up to a ceiling of CHF 148,200. Additional contributions include LAINF (0.7–1.5%) and the second pillar (LPP), with rates ranging from 7% to 18% depending on the worker's age bracket, starting from 25 years old. In Italy, income exceeding the exemption is taxed at the current IRPEF rates: 23% up to €28,000, 33% between €28,001 and €50,000, and 43% over €50,000. Therefore, it is essential to use a calculator to accurately estimate the total tax burden.

Pension Management and Fiscal Residency

Managing pension contributions is a fundamental pillar. Besides AVS and LPP, many workers opt for the third pillar 3a to benefit from tax advantages and to supplement future retirement income. Residing in Maccagno allows maintaining fiscal residence in Italy while operating within the Swiss economic context, but requires careful management of deadlines communicated by the Revenue Agency and the Ministry of Economy and Finance. Transparency between tax administrations, coordinated at the federal level by the AFC/ESTV, ensures that every income is correctly registered and taxed according to bilateral agreements.

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

Practical Procedures and Health Insurance Transferring to Maccagno involves activating specific procedures to regularize your status. The first step is obtaining the Permesso G, issued by the Ticino cantonal authorities upon request from the employer. Simultaneously, the issue of health insurance arises. According to LAMal, cross-border workers have the so-called right of option: they can choose to insure themselves in Switzerland or remain within the Italian healthcare system. If choosing LAMal, one must consider the deductibles for adults, which range from CHF 300 to CHF 2,500. This choice must be made within three months from the start of employment or from the transfer of residence, and is often irreversible unless significant changes occur in the employment situation.

Operational Steps for the Transfer For those deciding to settle in Maccagno, the procedure includes:

• Registration with the Maccagno with Pino and Veddasca Municipality.
• Communicating the new residence to the Swiss employer for updating the work permit.
• Evaluating the health insurance option LAMal within the deadlines set by the UFSP/BAG.
• Opening a technical bank account with Swiss banks to receive salary in CHF, carefully evaluating exchange costs using a comparison tool.
• Preparing documentation for the annual tax declaration in Italy, including certifications of INPS contributions and taxes paid in Switzerland.

Living in a border municipality like Maccagno also offers advantages related to 'ristorni', the tax shares that Switzerland retrocedes to Italian municipalities to finance public works and local services. Although the new agreement gradually modifies this system, residents continue to benefit from infrastructure maintained thanks to these financial flows. Before signing a rental or purchase contract in Maccagno, it is advisable to perform a comprehensive simulation of the net available income to understand the actual purchasing power, considering that the cost of living in this area is influenced by the proximity to Ticino. For a precise calculation of taxes and net salary, you can consult our calculator dedicated to cross-border workers.