Moving to Lugano: permits, tax residence and what you really need

To move to Lugano, an Italian citizen needs a B residence permit. To stop paying taxes in Italy, however, the permit is not enough: you must also cease to be resident in Italy under Italian rules.

The B permit: three routes

• Employees: an employment contract in Switzerland of at least 12 months or open-ended.

• Entrepreneurs or self-employed professionals: proof of a genuine and lasting self-employed activity.

• Those not working (e.g. pension, private means): sufficient financial resources and adequate health and accident insurance.

The permit is valid for five years and is renewable. In Ticino the application goes through the Migration Office in Bellinzona, after registering with the municipality of arrival.

Italian tax residence: the rules from 2024

Art. 2 TUIR treats as resident in Italy anyone who, for most of the year (counting fractions of days), has at least one of these elements in Italy:

• residence under the Civil Code;

• domicile, meaning their main “personal and family relationships”;

• physical presence.

Registration in the Italian population register creates a presumption of residence, which can however be rebutted. This is why you need to register with AIRE, and also genuinely live in Switzerland.

The most common mistake: the family stays in Italy

If your spouse and children stay in Italy, your domicile (personal and family relationships) remains in Italy. In that case the Italian tax authorities may continue to treat you as resident, even with a B permit and AIRE registration. For families, relocation works when the whole household moves or when the situation is carefully documented.

Good news: Switzerland is no longer on the blacklist

Until 2023, anyone moving to Switzerland was presumed to be resident in Italy and had to prove otherwise (Art. 2(2-bis) TUIR). The Ministerial Decree of 20 July 2023 (Official Gazette no. 175 of 28 July 2023) removed Switzerland from the list of preferential tax jurisdictions, with effect from 2024. The ordinary criteria described above still apply.

When it makes sense

It makes sense when the centre of your life, work and family genuinely moves to Ticino. For those not working in Switzerland, lump-sum taxation may be considered (see the article “How much tax do you pay in Lugano?”). Anyone keeping property, companies or income in Italy needs a plan that coordinates the two legal systems and the Italy–Switzerland tax treaty.

How we work

Collina d'Oro Consulting SA, based in Montagnola, supports entrepreneurs and families with the legal aspects of relocation: permits, corporate and real estate arrangements, in coordination with licensed tax advisers.

Sources: SEM – Permesso B UE/AELS · Città di Lugano – Permessi · Art. 2(2) and (2-bis) TUIR — text, as amended by D.Lgs. 209/2023 · D.M. 20 luglio 2023, G.U. n. 175 del 28 luglio 2023