Living in Cairate and working in Ticino as a cross-border commuter

Context

In brief

• The new agreement is effective from 1 January 2024
• Old cross-border commuters: exemption of €7,500 until 2033
• New cross-border commuters: deductible of €10,000
• Withholding tax is only withheld in Switzerland

Key Facts

• Signed → 23 December 2020
• Entry into force → 1 January 2024
• Italian ratification → Law 83 of 13 June 2023
• Old cross-border commuters → before 17 July 2023; exemption €7,500; transitional 2024–2033
• New cross-border commuters → deductible €10,000
• Income tax → withheld only in Switzerland; credit in the EC framework of 730
• IRPEF from 2026 → 23% / 33% / 43% by bands
• KVG → right of option for G; adult deductibles CHF 300–2500

The tax perimeter for those who live in Cairate

On 1 January 2024, the New Cross-Border Commuter Agreement, signed on 23 December 2020 and ratified in Italy with Law 83 of 13 June 2023, came into force. For those who live in Cairate and work in the Canton of Ticino, the date serves to correctly read their position, without confusing the agreement with a new 2026 tax agreement: the time reference is 2024.

The central tax rule is clear-cut. Tax on earned income is withheld only in Switzerland for cross-border commuters. Italy avoids double taxation through the tax credit indicated in the EC framework of 730. It is therefore not a withholding tax on the same income in both countries; the operational point is to distinguish the Swiss withholding tax from the credit to be used in the Italian return.

For Italian personal income tax, the source indicates from 2026 23% up to €28,000, 33% from €28,001 to €50,000 and 43% over €50,000, based on Law 199/2025, art. 1 c. 3. For 2024-2025 incomes, on the other hand, it reports 23%, 35% and 43%.

Old and new cross-border commuters

The legislation separates two groups. Those who were already cross-border commuters before 17 July 2023 are old cross-border commuters: an exemption of €7,500 is provided for them, with a transitional regime from 2024 to 2033. New cross-border commuters, on the other hand, have a deductible of €10,000. The date of 17 July 2023 therefore becomes the first check to be made before estimating the annual net.

The international framework should also be read without simplification. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976, while Switzerland is not a member of the EU or EEA. For the worker with a G permit, these references help to separate the tax plan from the insurance and social security plan. The AHV, BVG and KVG items are not synonymous with withholding tax: they belong to different chapters and must be examined separately. The dichiarazione dei redditi is the in-depth passage for the Italian part.

Operational details

The real calculation starts from the payslip

For those who move or consider living in Cairate, the difference between gross and net does not depend only on withholding tax. The Swiss paycheck includes contributions and insurances that must be kept distinct from the Italian-Swiss tax rule. The table summarizes the available rates and limits:

These numbers should not be read as a single percentage to be applied to the salary. AHV/IV/EO, ALV/CA, UVG and BVG belong to different functions; the BVG also varies by age group from the age of 25. It is therefore more prudent for the cross-border commuter to enter each item in his or her calculation line, instead of adding it to the tax exemption or the Italian tax credit.

The health choice

The second block concerns the KVG, i.e. health insurance. Cross-border commuters with a G permit have the right of option. For adults, the deductibles indicated by the source range from CHF 300 to CHF 2500. The KVG deductible is not the €7,500 exemption of old cross-border commuters and it is not the €10,000 deductible of new cross-border commuters: they are quantities with different functions. Confusing them alters the reading of the monthly budget.

The comparison with Italy requires the same terminological attention. Switzerland does not belong to the EU or EEA and the employee must therefore keep withholding tax, social security and health insurance separate. This is why the advantage or disadvantage of the transfer is not measured only by the gross figure.

For the practical analysis, it is advisable to prepare two scenarios: one for those who are among the old cross-border commuters, with exemption and transitional, and one for those who are new, with a deductible of €10,000. Then the contribution rates and the KVG choice are added separately. The confronto tra permesso G e B helps to keep the issue of status distinct from that of tax calculation.

Key points

Before deciding, build an orderly control

The procedure can remain essential, as long as it follows the correct order. The first step is to set the date of one's status: those who were already cross-border commuters before 17 July 2023 follow the old cross-border commuter regime; those who do not fall within that perimeter are treated as new cross-border commuters for the purposes of the indicated exemptions.

Five operational checks

1. Classify the tax regime. Compare the date of 17 July 2023 with your position and separate the scenario of old cross-border commuters from that of new ones.

2. Check the levy. In the simulation, record that the tax on earned income is withheld only in Switzerland; for the Italian part, note the tax credit in the EC framework of 730. The tax rates are set by federal and cantonal laws and administered at federal level by the FTA/ESTV and the cantonal tax administrations.

3. Separate the corporate items. Bring the AHV/IV/EO back to 5.3% for employees, ALV/HC to 1.1% with a cap of CHF 148,200, UVG to 0.7–1.5% and BVG to 7–18% for age group from the age of 25.

4. Open the health chapter. If you are a cross-border commuter G, consider the KVG option right and keep the adult deductible of between CHF 300 and CHF 2500 separate.

5. Put the result on the balance sheet. Compare the net obtained in the correct scenario with the expenses you want to assess, without confusing tax, contributions, health insurance, and the cost of living.

For a person considering living in Cairate, this sequence avoids two mistakes: calling the reform the new tax agreement 2026 and treating the Swiss withholding tax as if it were due in both countries. The period 2024–2033 should be brought back into the scenario of old cross-border commuters; the deductible of €10,000 remains the reference indicated for the new ones.

The final check must separate gross, withholding tax, social contributions, BVG and KVG. The tax calculation can be accompanied by the comparatore del costo della vita, without transforming a housing or travel item into an unverified amount. For those who live in Cairate and work in Ticino, now use the calcolatore dello stipendio netto to turn the rules into a personal simulation.