Living in Arosio, working in Ticino: border guide

Context

In brief

• Arosio is on the border with Ticino: ideal location for commuters working in Switzerland
• From January 1, 2024, the New Cross-Border Agreement introduces allowances of CHF 10,000 (new commuters)
• Withholding tax is deducted in Switzerland; Italy avoids double taxation through tax credit
• AVS/AI/IPG contributions: 5.3% borne by the employee, managed by the Ticino employer

Key facts

• What: Residence in Italy (Como province), work in Canton Ticino with permit G
• When: Regime active from January 1, 2024 for all new commuters
• Where: Arosio (Como, Italy) — border crossings to Ticino (Chiasso, Brogeda, Gaggiolo)
• Who: Commuters with permit G, administered by Swiss SEM and Italian Revenue Agency
• Allowance amount: CHF 10,000 annually (new commuters); CHF 7,500 (previous commuters, transitional regime 2024–2033)
• Withholding tax rate: Set by federal regulations and cantonal tax administrations

Arosio: a logical choice for commuters

Arosio is a municipality in the province of Como, located a few kilometers from the Swiss border. Its proximity to the crossings connecting Lombardy to Ticino (Chiasso, Brogeda, Gaggiolo) makes it a convenient residential base for those working in major Ticino centers: Lugano, Mendrisio, Bellinzona, Locarno. The cost of living in the Como area is generally lower compared to the Canton of Ticino, a non-secondary element for commuters who receive Swiss salaries but support part of their personal life in Italy. The local community offers healthcare, educational, and administrative services, with the Como Revenue Agency available for Italian tax issues. The geographical proximity reduces commuting times, a crucial factor for those who face border crossings daily. For a commuter, choosing to reside in Arosio means balancing access to the Ticino job market with the economic sustainability of Italian residence.

Operational details

The tax regime of the cross-border worker: how it works

Anyone residing in Arosio and working in Ticino is subject to the G permit (cross-border), which allows daily or weekly commuting. From a tax perspective, the withholding tax (deducted by the Swiss employer) is paid exclusively in Switzerland — never in both countries. This is a fundamental principle: the income from dependent work of a cross-border worker is never taxed twice. Italy, through the Italo-Swiss Bilateral Convention signed on March 9, 1976, grants a tax credit (section CE of the 730 declaration) that compensates for the tax already paid in Switzerland. Switzerland is not a member of the EU, so taxation follows specific regimes, not the ordinary European system. The Italian tax credit is the key tool to avoid double taxation.

Allowances and new 2024 agreement

The New Cross-Border Agreement, signed on December 23, 2020, and effective from January 1, 2024, has redefined the tax allowances. For new cross-border workers (those not yet registered as such before July 17, 2023), the allowance is CHF 10,000 annually: incomes up to this threshold do not generate income tax in Ticino. Cross-border workers already active before July 17, 2023, benefit from a transitional regime: an allowance of CHF 7,500 from 2024 to 2033, with gradual increases up to CHF 10,000. This distinction is important for correctly calculating the taxable base and planning the income declaration. The Italian Revenue Agency recognizes the tax credit in section CE, reducing or zeroing the gross Italian IRPEF according to the ordinary rates: 23% up to 28,000 euros, 33% up to 50,000, 43% over 50,000.

Pension contributions: AVS, LPP, and health insurance

Cross-border workers pay Swiss social security contributions: AVS (Old-Age and Survivors' Insurance) and AI (Disability Insurance) at a rate of 5.3% of the gross salary at the employee's expense, plus an equivalent employer contribution. The IPG (Loss of Earnings Allowance) contribution of 0.3% is added. Unemployment insurance (AD) and accident insurance (LAINF) follow federal rates: respectively 1.1% up to CHF 148,200 annual salary and 0.7-1.5%. The LPP (occupational pension, second pillar) varies by age group: from 7% to 18% depending on the pension fund and professional category. In Italy, the equivalent is managed by INPS (National Institute for Social Security), but a cross-border worker working in Switzerland pays exclusively Swiss contributions: they do not pay simultaneously in both systems. Health insurance (LAMal) is mandatory in Switzerland; cross-border workers with a G permit have the right to choose and can insure themselves with a Swiss institution or maintain Italian coverage (with verification of regulatory compatibility). The deductibles for adults in LAMal range from CHF 300 to CHF 2,500.

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 procedure: what to do before moving

1. Request the G permit

Before moving to Arosio, the Ticino employer must submit a request for authorization to hire to the SEM (Swiss State Secretariat for Migration) and the competent cantonal authorities. The G permit is nominative (linked to the employer) and has a maximum validity of 5 years, renewable. The documentation requires: signed employment contract, curriculum vitae, Swiss employer identification, proof of minimum income (determined at the cantonal level). It is advisable to verify the specific details with the Como Prefecture (Italian side) and the Department of Finance and Economy of the Canton Ticino (Swiss side).

2. Open a bank account and Italian tax formalities

On the Italian side, it is necessary to register with the competent Agenzia Entrate for the province of Como (office of Arosio or district) and obtain or update the tax code. Those who work in Switzerland must inform the Municipality of Arosio that they are cross-border workers: this communication facilitates the recognition of status with the local public administration. A bank account with an Italian bank in Como or Switzerland is essential: many Ticino employers pay salaries via SEPA bank transfer, so it is useful to have an Italian or Swiss IBAN. Some cross-border workers open accounts with banks operating in Switzerland, simplifying administrative management.

3. Income declaration and CE section

Every year (by June 30 for the ordinary declaration), those who work in Ticino must submit the 730 model to the Agenzia Entrate of the province of Como. In the 730 model, the CE section is specific for cross-border workers: here, the tax already paid in Switzerland (withheld by the employer) is declared and the tax credit is quantified. The Agenzia Entrate compares the Italian tax due (gross IRPEF according to ordinary rates) with the recognized credit and determines the refund, the integration, or the balance due. It is advisable to use a tax accountant specialized in cross-border taxation to ensure the correct compilation of the CE section and maximize the credit.

4. Key contacts and resources

For Swiss tax issues: Canton Ticino, Division of Contributions (federal section); for work permit: SEM (Canton Ticino section). For Italian aspects: Agenzia Entrate Como (district office), Municipality of Arosio (secretariat/registry), Como Prefecture (general administrative issues). A net salary calculator is available on our website to estimate the impact of taxes and contributions on the Swiss paycheck before the decision to move.

Critical deadlines

• G permit request: To be submitted before the official start date of work (usually 2-4 weeks in advance)
• Agenzia Entrate registration: Within 30 days of starting Italian residence
• 730 declaration: By June 30 of the year following the income received
• AVS contribution payment: Monthly or on the schedule indicated by the employer (usually at the end of the month)

Moving to Arosio as a cross-border worker is administratively feasible if planned in advance. The interaction between Swiss and Italian rules requires attention to detail and respect for deadlines. To avoid surprises from the paycheck or tax declaration, use our net salary calculator and verify in advance the impact of Swiss-Italian taxation on your income. Then, contact the competent administrations or a specialized consultant to further refine the contractual and pension details.