Young People Do Not Return: What Are Ticino Municipalities Doing?

Context

TL;DR

• 800 young people leave Ticino yearly, mainly to Lombardy and Italy.
• Tax incentives up to 15,000 CHF/year for local employment in some municipalities.
• 2023 agreement with Italy offers 50% tax deduction for returning youth.
• Lugano offers 50% income tax reduction for young adults until 2026.

Key facts

• Young people leaving: Approximately 800 young individuals each year.
• Main destinations: Lombardy and neighboring Italian regions.
• Tax incentives: Up to 15,000 Swiss francs per year for young people who find work locally.
• Mendrisio's Local Development Plan: Allocated 2 million francs in 2023 for youth employment projects.
• Cantonal law 2022: Offers tax incentives up to 50,000 francs for companies hiring under-30s.
• 2023 agreement with Italy: 50% of cantonal taxes as incentives for returning youth, up to 20,000 francs annually for three years.
• Lugano tax reduction: 50% reduction in canton income tax for young adults aged 20 to 35 until 2026.
• Bellinzona internship project: 500,000 CHF budget in 2024, aiming to place 60% of participants in local companies within six months.

The phenomenon of young people leaving Ticino has now become a structural and persistent element, with profound impacts on the socio-economic fabric of the Canton. According to recent data, approximately 800 young individuals each year choose not to return or to move elsewhere, mainly to Lombardy and neighboring Italian regions. This trend is driven by factors such as more competitive job opportunities, higher-level educational offerings, and more appealing living conditions, which often surpass those available in the Canton. The loss of human capital poses a real risk, as it threatens to undermine the economic and social development of the territory, creating a vicious cycle of impoverishment and youth unemployment.

The issue concerns not only temporary mobility but also a permanent exodus that reduces the qualified workforce and hampers local innovation. The youth section of the Center has launched a series of inquiries to over thirty municipalities, including Bellinzona, Locarno, and Lugano, highlighting this problem and calling for concrete strategies to reverse the trend. Among the most significant initiatives, some municipalities like Chiasso, Mendrisio, and Lugano have adopted experimental measures: tax incentives, such as deductions of up to 15,000 Swiss francs per year for young people who find work locally, and programs to boost employment opportunities with dedicated funds, such as Mendrisio's Local Development Plan, which allocated 2 million francs in 2023 for youth employment projects.

“To reverse this trend, an integrated approach between schools, employment, and social services is essential,” states the director of the Ticino Department of Finance and Economy. The biggest challenge remains creating an environment that combines work, education and quality of life — key elements for retaining young people in the territory. The latest regulation, introduced with the 2022 cantonal law, offers tax incentives up to 50,000 francs for companies hiring under-30s, with a total investment of around 10 million francs announced by the government.

Furthermore, a strategic element is the 2023 agreement with the Italian government, which provides that 50% of cantonal taxes are offered as incentives to young people choosing to return to Ticino, through a tax deduction of up to 20,000 francs annually for three consecutive years.

To make Ticino more attractive, implementing concrete tools is crucial: - creating dedicated training and innovation hubs for youth, - developing coworking spaces and startup incubators, - promoting cultural and sporting events with international appeal, - encouraging cross-border mobility with internships and transnational traineeships.

This situation demands a coordinated and operational approach involving schools, employment, and social services so that the Canton can turn this crisis into an opportunity for territorial innovation. Success hinges on offering a competitive, stimulating environment of quality, capable of retaining and attracting young talent, by leveraging local resources and the potential of a border territory.

Operational details

This article looks at the measures Ticino municipalities discuss to retain or attract young people.

To address the ongoing loss of human capital and combat the exodus of qualified youth to other regions or abroad, Ticino municipalities are implementing targeted initiatives. The most concrete and structured approach involves introducing tax incentives, which are already yielding tangible results in some parts of the canton.

Among these, Lugano Municipality adopted in 2023 a 50% reduction in canton income tax for young adults aged 20 to 35 who decide to return or move into the area. Valid until 2026, this measure aims to attract talent who studied or worked elsewhere, encouraging them to settle in Ticino. In particular, it is estimated that about 150 young people benefited from this incentive in 2023, leading to a 10% increase in new resident registrations in this age group compared to the previous year.

Current regulations require beneficiaries to submit a formal application accompanied by documents proving their work or education outside Ticino, such as diplomas, employment contracts, or internship attestations. The measure is valid until December 31, 2026, with possible extensions depending on results.

> “Our goal is to reduce the gap between young people studying and working outside Ticino and their opportunity to come back,” says the director of youth policies of Lugano.

In addition to fiscal incentives, municipalities are enhancing training and employment programs in collaboration with universities like SUPSI and local companies. These include scholarships, internships, and traineeships designed to facilitate the return and stable settlement of young people. For example, Bellinzona launched in 2024 a paid internship project targeting engineering and technology graduates, with a total budget of 500,000 CHF, aiming to place at least 60% of participants in local companies within six months of completing the internship.

To access these opportunities, it is essential to follow some key steps:

• verify eligibility through the cantonal or municipal portal,
• complete online or in-person application forms,
• submit documentation proving activity outside Ticino,
• activate placement services and follow-up.

The relevant legislation includes article 23 of the Tax Relief Law (approved in 2022 and updated in 2024) and directives from the Department of Finance and Economy (DFE). Monitoring deadlines and periodically updating data is crucial to maintain benefits and avoid losing advantages.

> Among the most common FAQs are: who can benefit, how to apply, which documents to attach, and what to do in case of rejection or extension requests.

In practical scenarios, a young graduate moving to Lugano in 2024 could save around 10,000 CHF annually in taxes, with an average saving of 50% compared to standard rates, thus incentivizing the return of qualified talent to the territory.

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Key points

Young People Do Not Return: What Are Ticino Municipalities Doing?

For many young individuals eager to return to Ticino, daily life can be complex and often unsatisfying, pushing them to seek alternatives or remain abroad. Nevertheless, some Ticino municipalities like Lugano, Bellinzona, and Mendrisio are implementing targeted strategies to encourage their return and maximize the potential of this demographic.

In particular, fiscal incentives and residence benefits are becoming even more strategic tools. For example, Lugano’s 'Return Ticino' plan offers a tax bonus of 10,000 CHF for young people aged 20 to 35 who decide to move and settle in the area, benefiting from temporary reductions in cantonal and municipal taxes. Valid until 2026, these incentives target those bringing new activity or entering the local job market.

“Our aim is to reverse the trend of youth emigration by creating an attractive and sustainable environment,” states Lugano’s mayor, Marco Borradori.

To better understand the concrete opportunities, it’s useful to compare practical scenarios: a young person earning 80,000 CHF annually who moves to Lugano could save about 3,000 CHF per year in taxes thanks to new incentives, compared to residing in Italy or other Swiss regions. However, it’s important to consider the higher living costs in Ticino — on average about 10% more than Milan, for instance. A concrete example: an 80 sqm apartment in Mendrisio costs around 1,200 CHF per month, versus 1,000 in Milan.

To facilitate the return, local authorities recommend an operational checklist:

• 💡 consult online tax and cost-of-living calculators available on municipal and cantonal websites,
• 💡 check job offers on platforms like Jobs.ch, Indeed.ch, and local Chamber of Commerce portals,
• 💡 inquire at the Bellinzona Permits Office about renewal or residence permit requirements, considering that young people aged 20 to 35 can benefit from specific incentives such as the renewable G permit and residence bonus,
• 💡 plan the move at least 6-12 months in advance, accounting for bureaucratic procedures and the possibility of financial or training support.

Additionally, updating documents, preparing a detailed financial plan, and assessing mortgage or rental compatibility with the new budget are advisable. Compared to living abroad, returning to Ticino can be advantageous not only financially but also in terms of quality of life, thanks to excellent services, an efficient healthcare system, and a natural environment of great value. The key lies in careful planning and leveraging the opportunities offered by public and private support.

For those seeking further details, the cantonal and municipal websites offer tools like salary calculators, cost of living comparisons, and residence permit simulations to precisely evaluate the benefits of returning. Remember that in a context of economic crisis and social change, returning can represent a real opportunity for personal and territorial renewal.

Official sources: Switzerland–Italy tax agreement (Fedlex)