Living in Tavernerio, working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• Tavernerio is ~50 km from Como, about 50-60 min by car towards the Ticino border
• Lower housing costs in Como and at the direct border; attracts border workers from Brianza
• Permit G mandatory; withholding tax in Switzerland (Convention 9 December 1976)
• New Frontier Agreement (effective 1 January 2024): excess CHF 10,000 new, CHF 7,500 old frontier

Key facts

• What: Border settlement from Brianza Como to Ticino (employees in CH companies)
• Where: Tavernerio (Como), ~80 km from Lugano, ~70 km from Bellinzona
• When: Growing interest post-2024, with border tax reform of the New Deal
• Who: Border workers with G Permit (border permit, valid for 5 years)
• Main advantage: Lower housing cost compared to the municipalities of direct border Chiasso/Mendrisio

Tavernerio, a municipality of Brianza Como in the province of Como, is not a direct border territory with Ticino, yet it attracts increasing attention from those who value life as a border crosser. Located about 50 kilometers from Como and 80 from Lugano, it represents an alternative housing choice for workers who prefer lower costs than the immediate border municipalities, accepting more extensive commuting.

The typical profile is that of the Italian worker already integrated into the Ticino labour market - doctors, nurses, technicians, skilled workers - who assesses the trade-off between proximity to the workplace and accommodation costs.

Operational details

Tax at source and taxation New Agreement 2024

Tax at source is withheld in Switzerland by the border worker's employer. There is no double taxation: Italy avoids the risk by means of a tax credit in form 730 (EC framework). The Italian-Swiss Convention signed on 9 December 1976 regulates this mechanism. In 2024, the New Frontier Agreement amended the allowances: for "old" frontier workers (prior to 17 July 2023), exemption of CHF 7,500 per year; for new frontier workers, allowance of CHF 10,000. This difference directly affects the gross income taxed in Switzerland.

A hypothetical example: a frontier worker with a gross salary of CHF 60,000 per year, if "old", sees CHF 52,500 taxed (after exemption 7,500); if "new", sees CHF 50,000 taxed (after exemption 10,000). Savings are progressive and significant on medium-high incomes. In addition, the refunds calculated by the Italian Revenue Agency with respect to the Swiss taxes paid follow the transitional regime for old border workers, with additional discounts until 2033.

AVS, LPP and LAMal for border guards Permit G

Living in Tavernerio (Italy) and working in Switzerland, the border worker is covered by the G Permit scheme (border worker, valid for 5 years). It is subject to AVS/AI/IPG contributions (5.3% for employees, +1.1% for AD/AC with cap CHF 148,200 for 2024). The LPP (second pillar, occupational pension) is mandatory from the first day of work; the rate varies from 7%

Useful planning tools

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

Key points

Step-by-step procedure: how to start working as a cross-border commuter

Step 1: Get the G Permit Contact the Swiss Migration Offices (SEM) via your Ticino employer. The G Permit (cross-border commuter, valid for 5 years) is mandatory to work in Switzerland while living in Italy. The procedure is generally managed by the employer with the Swiss consulate in Milan or the consulate general in Geneva. Average time: 2-4 weeks from request.

Step 2: Registration and INPS/LAMal option Communicate the Italian tax code and INPS registration number to the employer (if self-employed) or check if he is already paid as an employee in the national system. Decide within 30 days whether to stay in INPS or switch to LAMal (Swiss): the choice is irrevocable for 5 years. KVG offers better coverage in Switzerland; INPS offers continuity with the Italian system and free access as an employee.

Step 3: AHV/BVG contributions and automatic payment The Swiss employer will automatically deduct from the payslip: AHV/IV/EO 5.3%, AL/HC 1.1% (cap CHF 148,200), UVG 0.7-1.5%, BVG 7-18% depending on age. You will receive an annual payment certificate: keep it for the Italian tax return.

Step 4: Model 730 and EC Framework (deadline 31 May) By 31 May of each year following the work, submit a declaration to the Revenue Agency with:

• Swiss withholding tax certificate (received from the employer)
• EC framework (foreign tax credit)
• Check new (CHF 10,000) or old (CHF 7,500) excess depending on the start date

The Revenue Agency will recognize the Swiss tax credit according to the Convention of 9 December 1976. If eligible for the transitional regime (cross-border workers before 17 July 2023), it notifies the Agency for additional rebates until 2033.

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