Living in Caronno Varesino: working in Ticino as a cross-border commuter (cross-border guide)
For those who live in Caronno Varesino and work in Ticino: The New Cross-Border Workers Agreement has been in effect since January 1, 2024, with different exemption thresholds.
Context
At a Glance
- Cross-border worker agreement in effect as of January 1, 2024
- Existing cross-border workers: €7,500 exemption through 2033
- New cross-border workers: €10,000 exemption
- Withholding tax deducted only in Switzerland
Key Facts
- Signing of the New Cross-Border Workers Agreement → December 23, 2020
- Italian ratification → Law No. 83 of June 13, 2023
- Existing cross-border workers → €7,500 exemption, 2024–2033 regime
- New cross-border workers → €10,000 tax-free allowance
- Double Taxation Treaty → March 9, 1976
The New Cross-Border Workers Agreement was signed on December 23, 2020, and has been in effect since January 1, 2024. Italy ratified the agreement with Law 83 of June 13, 2023. For those living in Caronno Varesino and working in Ticino as cross-border workers, these are the dates to use to determine their tax classification—not the generic reference to a new 2026 tax agreement.
The Dates That Affect the Calculation
The main distinction here concerns the date on which you were already a cross-border worker. Those who were cross-border workers before July 17, 2023, fall under the old cross-border worker regime: they have a €7,500 exemption and a transitional regime valid from 2024 to 2033. Those who became new cross-border workers, on the other hand, are subject to the €10,000 tax-free allowance. This transition should not be viewed as double taxation: withholding tax on employment income is applied only in Switzerland. Italy avoids double taxation through the tax credit indicated in Section CE of Form 730.
Starting in 2026, the Italian IRPEF tax rate will be 23% on income up to €28,000, 33% from €28,001 to €50,000, and 43% above €50,000, according to Law 199/2025, Art. 1, para. 3. For 2024–2025 income, the three rates are 23%, 35%, and 43%.
The Double Taxation Agreement between Italy and Switzerland was signed on March 9, 1976. Switzerland is not a member of the EU or the EEA: this information is provided to ensure that the Swiss framework is not automatically superimposed on the European one.
Federal and cantonal withholding tax rates are established by federal and cantonal laws. At the federal level, administration is the responsibility of the AFC/ESTV; at the cantonal level, the cantonal tax authorities are involved. The Federal Social Insurance Office (UFAS) handles social security, and the Federal Statistical Office (BFS) collects statistical data: neither should be listed as an authority that sets tax rates.
For those who choose to live in Caronno Varesino and work in the Canton of Ticino, the issue goes beyond simply the commute between home and work. Before moving, cross-border workers must distinguish between income taxation, a potential G permit, social security, health coverage, and tax refunds. These are different matters, and it is important to understand them without confusing withholding tax and social security contributions. The operational reference for tax reporting remains the tax credit in form dichiarazione dei redditi.
Operational details
Income: Looking Beyond the Gross Amount
Anyone considering a move from Caronno Varesino shouldn’t stop at the gross figure. When working in Ticino, tax withholdings and social security contributions follow different rules. The table summarizes the available figures and shows which items to separate when comparing salary offers, housing, and the cost of living.
| Item | Rate or Limit | Practical Interpretation |
|---|---|---|
| AVS/AI/IPG | 5.3% employee | Swiss contribution |
| AD/AC | 1.1%, cap of CHF 148,200 | contribution limit |
| LAINF | 0.7–1.5% | contribution item |
| LPP | 7–18%, age group starting at age 25 | pension item |
Four Plans Not to Be Confused
In the Canton of Ticino, the first category is withholding tax, which is deducted solely in Switzerland from a cross-border worker’s employment income. The second is pension contributions: AVS/AI/IPG, AD/AC, and LPP are not IRPEF tax rates. The third concerns LAINF contributions. The fourth is health care, which must be kept separate from tax withholding.
Cross-border workers with a G permit have the option to enroll in LAMal, i.e., health insurance. For adults, the deductibles range from CHF 300 to CHF 2,500. This figure should not be treated as a single cost: the deductible is an item to be compared with the rest of one’s personal budget. For a more focused analysis, the LAMal guide can be used alongside the comparison in costo della vita Ticino-Italia.
Pension planning also requires a separate line item. AVS and LPP must be kept distinct from tax rates; in the comparison between Italian and Swiss references, the INPS also appears, but it should not be used to assign Swiss tax rates to an Italian agency. For taxation, the reference is the AFC/ESTV at the federal level and the cantonal tax administrations. UFAS deals with social security, and BFS collects statistical data: neither sets tax rates.
For cross-border workers, the advantage or disadvantage of the move cannot be reduced to a single percentage. The comparison must include Swiss withholding tax, tax credits, social security contributions, LAMal (Health Insurance Act), housing costs, and transportation expenses in the same table. In this way, the cost of living is factored into the calculation as a variable to be assessed, without turning qualitative data into a made-up net figure.
Key points
Before the Move
Working in Ticino from Caronno Varesino requires a thorough assessment, not an estimate based solely on the exchange rate or gross salary. The most reliable method is to create a personal worksheet with dates, tax status, deductions, and insurance details that are already available.
A Five-Step Assessment
1. Note the reference date. Check whether you were already classified as a cross-border worker before July 17, 2023. This distinction determines whether you fall under the regime for “old” cross-border workers—with a €7,500 exemption and a transition period from 2024 to 2033—or the regime for “new” cross-border workers, with a €10,000 exemption.
2. Separate the withholding from the tax credit. Withholding tax on employment income is deducted only in Switzerland. For the Italian portion, enter the tax credit in Section CE of Form 730 and do not automatically apply a second withholding on the same income.
3. Review the social security items. AVS/AI/IPG, AD/AC, LAINF, and LPP must remain separate from taxes. For LPP, consider the age bracket starting at age 25; for AD/AC, note the limit of CHF 148,200. If the comparison also involves a pension, use the AVS/LPP e rendita tool.
4. Check health coverage. If you are a cross-border worker with a G permit, consider the option to enroll in LAMal and the adult deductible, which ranges from CHF 300 to CHF 2,500. Don’t call it a “health tax”: LAMal is health insurance. For matters related to ristorni Ticino-Italia, keep your review separate from your pay stub and health coverage.
5. Consider your commute. Brogeda is one of the border crossings listed in the transportation section. For those weighing the costs of living and commuting, it’s advisable to monitor tempi di attesa ai valichi and keep commuting expenses separate from tax calculations.
The final check concerns the tax year. Starting in 2026, the Italian IRPEF tax rates are 23% up to €28,000, 33% from €28,001 to €50,000, and 43% above €50,000; for 2024–2025 income, the rates are 23%, 35%, and 43%. Enter the correct year before comparing disposable income. To convert the data into a pay stub estimate, use the calcolatore stipendio.
Frequently Asked Questions
- When did the New Cross-Border Commuter Agreement come into force?
- The New Cross-Border Commuters Agreement was signed on 23 December 2020 and has been in force since 1 January 2024. In Italy, it was ratified by Law 83 of 13 June 2023. The date of 2026 does not identify the entry into force of the agreement: 2026 instead concerns the IRPEF rates indicated for the tax year.
- What exemption applies to old and new cross-border commuters?
- Those who were already cross-border commuters before 17 July 2023 are among the old cross-border commuters: for them there is an exemption of €7,500, with a transitional regime from 2024 to 2033. New cross-border commuters, on the other hand, have a deductible of €10,000. The distinction must be made on the date of 17 July 2023.
- Where is the cross-border commuter's income tax withheld?
- For cross-border commuters, withholding tax on earned income is only withheld in Switzerland, not in both countries. Italy avoids double taxation through the tax credit to be indicated in the EC framework of 730. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976.
- Which Swiss contributions affect the paycheck?
- The source indicates AHV/IV/EO at 5.3% for the employee, AD/AC at 1.1% with a limit of CHF 148,200, UVG between 0.7% and 1.5%, and BVG between 7% and 18% for age group from the age of 25. These items must be kept separate from withholding tax when comparing the net income of a cross-border commuter in Ticino.
- What does a cross-border commuter need to know about the KVG?
- G cross-border commuters are entitled to option for KVG, health insurance. For adults, the deductibles indicated range from CHF 300 to CHF 2500. The KVG is not a health tax: it should be considered as an insurance item in the cross-border commuter's budget separate from withholding tax and social security contributions.