Living in Arosio, working in Ticino: border guide (cross-border guide)
From geographical location to tax advantages: everything that those who want to move to Arosio and work in the Canton of Ticino need to know about the rights of the border worker.
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
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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 December 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, 35% up to 50,000, 43% over 50,000.
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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.
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Frequently Asked Questions
- What is the difference between the G permit and the B permit for those who want to live in Arosio and work in Ticino?
- The G (border) permit allows daily or weekly commuting: you reside in Italy (Arosio) and work in Switzerland (Ticino), returning to your Italian home at least once a week. The B permit (residence) is required if you intend to establish permanent residence in Switzerland and work as an employee or self-employed person. For those who choose Arosio as their main residence, the G permit is the typical and appropriate choice. Both are administered by the Swiss SEM and the cantonal authorities.
- Does the source tax in Ticino fully cover the Italian IRPEF, or do I have to supplement the Italian tax return?
- The Swiss source tax (withheld by the employer) partially or totally covers the Italian IRPEF, depending on the deductible and the Ticino federal rate applied. The Italian declaration 730 with CE framework allows you to claim the tax credit for taxes already paid in Switzerland. If the credit exceeds the Italian gross personal income tax due, you receive a refund; if it is less, supplement the balance. The Italian-Swiss Convention of 9 December 1976 regulates this compensation and avoids double
- How much will I pay in AVS and social security contributions if I work in Lugano da Arosio?
- As an employee, you contribute 5.3% of your gross salary for AVS (Old Age Survivors Insurance) and AI (Disability Insurance), plus additional quotas for unemployment insurance (AD 1.1%, up to CHF 148'200) and accidents (LAINF 0.7-1.5%). The PPI (second pillar) varies from 7% to 18% depending on the age and the social security institution chosen by the employer. The exact amount depends on your gross salary, the social security institution and your age group: for an accurate estimate, use our net
- If I already reside in Arosio as an Italian, what should I do to transfer my status to Ticino border crossing?
- Register with the Revenue Agency of Como with the new status of employee in Switzerland, providing the employment contract and permit number G. Notify the Municipality of Arosio of your employment situation (optional but recommended for the land registry and local services). On the next declaration 730, fill in the EC framework for the tax credit on contributions paid in Switzerland. If your Swiss employer is new, please provide your bank details (IBAN) for the payment of your salary.
- Does the new 2024 border agreement favour me if I am a new border worker with an income below CHF 10,000?
- Yes. If you are a new frontier worker (not registered as such before 17 July 2023) and your annual income is less than CHF 10,000, the deductible covers the entire taxable income: you do not pay income tax in Ticino on that part. If you exceed CHF10,000, you pay Ticino federal and cantonal tax only on the excess part. If you are already a border worker, the transitional regime CHF 7,500 (2024-2033) applies to you, with gradual increases. See the Tax Returns section of our site for details on ded