Toceno and border workers Ticino: work, taxes and transfer (cross-border guide)

Context

In a nutshell

• Toceno is a strategic residential area for border crossers Ticino-Italy
• Withholding tax withheld only in Switzerland; tax credit in Italy
• G Permit (border <30 days/year) or B Permit; New 2024 Agreement with €10k deductible

Key facts

• What: Housing choice for border workers; CHF-EUR commuting between Piedmont and Ticino
• Where: Toceno, Verbano-Cusio-Ossola province; Brogeda, Gaggiolo, Ponte Tresa passes
• Who: Cross-border workers to the Canton of Ticino
• When: New Frontier Agreement in force 1 January 2024
• Taxation: Withholding tax withheld only in Switzerland; CE 730 framework avoids double taxation
• Deductible: €10,000 for new frontier workers; €7,500 for previous frontier workers (transitional regime 2024–2033)

Toceno, a municipality in Piedmont on the border with the Canton of Ticino, is one of the preferred housing choices for border workers working in Switzerland. The decision to move from this side of the border implies a careful assessment of the economic, fiscal and practical advantages linked to cross-border commuting. The configuration of living in Toceno and working in Ticino combines a significant reduction in housing costs compared to the Swiss territory with a reasonable proximity to the main Ticino economic centres.

Why Toceno attracts border workers

Toceno offers several logistical and economic advantages for those who decide to live in Italy but work in Ticino. The proximity to

Operational details

Taxation and permits for border workers

The income tax at source for frontier workers is ONLY withheld in Switzerland. Italy avoids double taxation by applying a tax credit in the EC framework of 730. This means that the border worker resident in Toceno and working in Ticino will have Swiss federal and cantonal withholdings on the paycheck, without parallel taxes in Italy. Your Swiss employer automatically makes these withholdings at the applicable federal and cantonal rates.

With the New Frontier Agreement coming into force on 1 January 2024, new deductible regimes have been defined. Border crossers who were already border crossers before 17 July 2023 benefit from an exemption of €7,500 under the transitional regime (2024–2033). The new frontier workers, on the other hand, have a deductible of €10,000 per year. This deductible represents the amount of earned income that is not subject to tax in Switzerland; higher amounts are subject to ordinary taxation.

Social security contributions and payroll costs

Once hired in Ticino, the border worker resident in Toceno will see a series of mandatory withholdings on his Swiss paycheck. The AVS (Old Age and Survivors Insurance) represents a contribution of 5.3% borne by the employee, in addition to the employer's contributions for AI (invalids) and IPG (maternity allowance). Add the mandatory occupational pension contribution (LPP, according to

Useful planning tools

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

Key points

Checklist before moving to Toceno

Before deciding to move to Toceno to work in Ticino, verify the following practical points:

Work permit

Ask your Swiss employer if they will support the issuance of a G permit (frontalier) or if a B permit (residence) is available. The G permit is intended for those who work less than 30 days per year in Switzerland; it is the most streamlined type for pure commuters. The B permit is more standard for stable and full-time employment. Your Swiss employer will normally support the request to the cantonal authorities in Ticino by presenting contractual and financial documentation.

Italian tax declaration

Register immediately with the Italian Revenue Agency as a resident in Italy (Toceno). Inform your new domicile and your frontalier activity. The tax credit for double taxation should be reported in the CE box of the model 730 every year. This is the procedure by which Italy recognizes the taxes already paid in Switzerland and compensates them from your Italian taxable base.

AVS/LPP registration

Once employed in Switzerland, you will be automatically registered with the Swiss pension system (AVS = Old-age and Survivors Insurance; LPP = Occupational pension, second and third pillars). These contributions are mandatory and automatically withheld from your salary according to federal rates (AVS/AI/IPG 5.3% at the employee's expense, plus LPP based on age range from 25 years). Check with your pension management company the modalities of registration to the third pillar (3a) if you want to increase your pension accumulation.

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