What is the New Frontier Agreement and when did it come into force?

The New Frontier Agreement between Italy and Switzerland was signed on 23 December 2020 and entered into force on 1 January 2024. It introduces a transitional regime until 2033 with deductibles on income: €7,500 for those who were already border workers before 17 July 2023, €10,000 for new border workers. The agreement was ratified by Italy with Law 83 of 13 June 2023.

What is the difference between old and new frontier workers in tax terms?

Old frontier workers (already before 17 July 2023) are entitled to an exemption of €7,500 per year until 2033. New frontier workers benefit from a higher deductible: €10,000 per year. Both enjoy double tax exemption through the Italian tax credit.

Where do I pay taxes on my salary if I live in Carate Urio and work in Ticino?

You pay taxes only in Switzerland, through the withholding tax calculated by your Ticino employer. Italy avoids taxing you again thanks to the tax credit, which you apply in the 730 EC framework declaration. There is no double taxation if you follow the procedures correctly.

How much do I contribute to AVS and LPP if I work in Ticino?

As an employee, you pay 5.3% into AVS/AI/IPG (Old Age, Disability and Earnings Supplement). The LPP (second pillar, pension fund) varies from 7% to 18% depending on age, calculated automatically on the paycheck. These contributions are mandatory and separate from any Italian INPS payment.

How do I register as a border worker and what permission do I need?

Apply for the G Permit at the Migration Section of the Canton of Ticino. The employment contract, identity document, application forms and certificate of domicile from Carate Urio are required. Once approved, the employer communicates your details to the tax administration and you start paying taxes and contributions in Switzerland. The process is standardized and usually takes 2–4 weeks.

Carate Urio: Ticino border between tax and benefits (cross-border guide)

Di Marco Ferrari · Published on 23 August 2026

View of Lake Ceresio from Carate Urio village, with Swiss Alps visible across the Ticino border

Living in Carate Urio and working in Ticino: New Agreement 2024, deductibles €7,500-€10,000, AVS, LPP, LAMal and G Permit procedure.

Context

In a nutshell

New Agreement in force from 1 January 2024
Old frontier workers: exemption €7,500, new €10,000
Withholding tax withheld ONLY in Switzerland
AVS contributions 5.3%, LPP 7–18% by age

Key facts

What: New tax regime for border workers
When: From 1 January 2024
Where: Ticino-Como border
Who: Border workers Leave G
Deductible: €7,500 (old) or €10,000 (new)

A border worker who lives in Carate Urio, a municipality in the province of Como overlooking Ceresio, and works in Ticino faces a decision that directly affects the portfolio: what are the real tax and social security implications of moving across borders? The response has changed radically since 1 January 2024, with the entry into force of the New Frontier Agreement.

The New Frontier Agreement: what changes from 2024

The New Frontier Agreement between Italy and Switzerland, signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023, introduces a transitional regime valid until 2033. The distinction is clear: those who were border workers before 17 July 2023 benefit from an exemption of €7,500 per year on work income; those who subsequently become border workers have a larger deductible of €10,000.

For those who live in Carate Urio it means something simple but decisive: the tax at source on wages is withheld only in Switzerland, not in Italy. Italy avoids double taxation through credit

Operational details

Old vs. New Frontier Scenario: The Concrete Comparison

The administrative distinction between old and new frontiersmen has concrete implications on the perceived net. A hypothetical scenario clarifies the point: those who already lived in Carate Urio and worked in Ticino before 17 July 2023 keep the deductible of €7,500 until 2033. This means that the first €7,500 of annual income is not taxable under the new agreement (except for other flat-rate deductions). Those who move from Carate Urio in 2024 or 2025 benefit from the largest deductible: €10,000 per year immediately.

The difference of €2,500 is not an administrative detail. On an annual income of €40,000, the deductible represents 20–25% of the taxable amount: a non-trivial advantage on the overall tax return.

AVS, LPP, LAMal: the Swiss social security system

Those who work in Ticino enter a social security system completely different from Italy. The AVS (old-age and survivors' insurance) and the AI (disability insurance) are mandatory from the first day, with a combined payment of 5.3% on the paycheck. There is no option; it is automatic. It is separate from the Italian INPS pension: if you work in Switzerland, the Italian payments do not continue.

The LPP (second pillar) is the equally automatic Swiss mandatory pension fund. The amount depends on the age group: between 25 and 34 years it is paid around 7%, between 45 and 54 years about 15–16%, from 55 in

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

How to Register: G Permit and Administrative Procedures

A resident of Carate Urio must apply for the G Permit through the Migration Section managed by the Department of Institutions in the Canton of Ticino. The necessary documents are elementary but non-negotiable: a signed employment contract from the Ticinese employer, a photocopy of the passport or identity document, completed application forms, and a certificate of domicile from Carate Urio. Once the G Permit is approved, the employer communicates your data to the cantonal tax authorities (AFC/ESTV at the federal level and local administrative authorities). From that moment on, the source tax is automatically calculated on your gross income and paid monthly to the Ticinese tax administration.

Fiscal Obligations: Pay Slip, 730, and Refunds

The first year may seem complex, but the procedure is standardized. Every month, the employer deducts and pays the source tax. At the end of the year, the foreigner receives a document attesting to the payments (equivalent to the Italian tax certificate). In Italy, you must submit the 730 declaration within the established deadlines (usually May 31 of the following year), attaching a copy of the Swiss documentation. In the CE framework, declare the Swiss tax paid and request credit to avoid double taxation. If you have paid more than what is due according to Italian law, you will receive a refund (refund); if there is a remaining debt, you must settle it.

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Frequently Asked Questions

What is the New Frontier Agreement and when did it come into force?: The New Frontier Agreement between Italy and Switzerland was signed on 23 December 2020 and entered into force on 1 January 2024. It introduces a transitional regime until 2033 with deductibles on income: €7,500 for those who were already border workers before 17 July 2023, €10,000 for new border workers. The agreement was ratified by Italy with Law 83 of 13 June 2023.
What is the difference between old and new frontier workers in tax terms?: Old frontier workers (already before 17 July 2023) are entitled to an exemption of €7,500 per year until 2033. New frontier workers benefit from a higher deductible: €10,000 per year. Both enjoy double tax exemption through the Italian tax credit.
Where do I pay taxes on my salary if I live in Carate Urio and work in Ticino?: You pay taxes only in Switzerland, through the withholding tax calculated by your Ticino employer. Italy avoids taxing you again thanks to the tax credit, which you apply in the 730 EC framework declaration. There is no double taxation if you follow the procedures correctly.
How much do I contribute to AVS and LPP if I work in Ticino?: As an employee, you pay 5.3% into AVS/AI/IPG (Old Age, Disability and Earnings Supplement). The LPP (second pillar, pension fund) varies from 7% to 18% depending on age, calculated automatically on the paycheck. These contributions are mandatory and separate from any Italian INPS payment.
How do I register as a border worker and what permission do I need?: Apply for the G Permit at the Migration Section of the Canton of Ticino. The employment contract, identity document, application forms and certificate of domicile from Carate Urio are required. Once approved, the employer communicates your details to the tax administration and you start paying taxes and contributions in Switzerland. The process is standardized and usually takes 2–4 weeks.