When did the New Frontier Agreement come into force?

It entered into force on 1 January 2024. The agreement was signed on 23 December 2020 and the Italian ratification took place with Law 83 of 13 June 2023. The date of 17 July 2023 serves to distinguish old frontier workers, already such before that day, from new frontier workers. The tax treatment changes: exemption of €7,500 in the transitional regime for the former and exemption of €10,000 for the latter.

Where is the border worker's income tax withheld?

For the income from work of the border worker, the deduction takes place only in Switzerland. Italy avoids double taxation by means of the tax credit to be indicated in the EC framework of 730. The rule does not provide for automatically adding a second Italian tax on the same income. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976.

What is the difference between old and new frontiersmen?

The old cross-border commuters are those already in place before 17 July 2023: they are exempted for €7,500 under the transitional regime 2024-2033. The new frontier workers have a deductible of €10,000. The distinction must be made before interpreting the tax at source or comparing a paycheck.

What does the Swiss contribution framework include?

The rates indicated by the source are 5.3% for AVS/AI/IPG borne by the employee, 1.1% for AD/AC with a ceiling of CHF 148'200, 0.7-1.5% for LAINF and 7-18% for LPP based on the age group from the 25th year. They are different items and not a single overall rate.

What does LAMal mean for a G-boundary?

LAMal is health insurance. Border workers with a G permit have the right of option; for adults, the deductible indicated by the source ranges from CHF 300 to CHF 2500. LAMal should therefore be assessed separately from tax at source and payroll contributions. It is not described in the text as a health tax.

Living in Carugo and working in Ticino as a cross-border worker (cross-border guide)

Di Marco Ferrari · Published on 30 September 2026

Morning border road in Ticino with a cross-border commuter

Cross-border worker agreement effective as of 2024: taxation only in Switzerland, a €7,500 exemption for existing workers and a €10,000 exemption for new workers.

Context

At a Glance

New agreement effective January 1, 2024
Existing cross-border workers: €7,500 exemption through 2033
New cross-border workers: €10,000 exemption
Income taxed only in Switzerland; tax credit on Form 730

Key Facts

Agreement: signed on December 23, 2020; effective January 1, 2024
Italian ratification: Law No. 83 of June 13, 2023
Existing cross-border workers: €7,500 tax-free allowance; transitional regime 2024–2033
New cross-border workers: €10,000 tax-free allowance
Tax: levied only in Switzerland; tax credit in Section CE of Form 730

The New Cross-Border Workers Agreement was signed on December 23, 2020. It entered into force on January 1, 2024, while Italian ratification came with Law No. 83 of June 13, 2023. For those considering living in Carugo and working in Ticino as a cross-border worker, these are the dates that define the current framework: 2026 is not the relevant year.

The tax principle outlined in the source is clear: withholding tax on a cross-border worker’s earned income is withheld only in Switzerland. Italy avoids double taxation through a tax credit, which must be claimed on Form 730. This is therefore not a case of ordinary double withholding on the same income in both countries.

The key distinction concerns the date of entry into the regime. Long-term cross-border workers—those who were already classified as such before July 17, 2023—retain a €7,500 exemption under the transitional regime valid from 2024 to 2033. New cross-border workers, on the other hand, have an exemption of €10,000. Before reviewing a pay stub or comparing job offers, a resident of Carugo must therefore determine which of the two categories they fall into.

The Scope to Keep Separate

The Italy-Switzerland Double Taxation Convention was signed on March 9, 1976. Switzerland is not a member of the European Union or the European Economic Area.

The G permit should also be considered as part of this initial assessment, without confusing it with taxation. The guida al Permesso G/B code can serve as a starting point for organizing the administrative process, while income remains tied to Swiss withholding tax and the credit indicated on Form 730. The framework includes the Canton of Ticino and the Italian Revenue Agency; for Swiss tax rates, the administrative reference is the AFC/ESTV at the federal level and the cantonal tax administrations.

The first step, therefore, is not to choose a zone or estimate travel time. It is to correctly classify the cross-border worker’s tax status and not to confuse the agreement in effect as of 2024 with a presumed start date in 2026.

Operational details

From gross salary to everyday life

To understand whether moving from Carugo to a job in Ticino is sustainable, the comparison cannot stop at gross salary. When calculating disposable income, withholding tax and Swiss contribution items must be kept separate. The source indicates AVS/AI/IPG at 5,3% borne by the employee, AD/AC at 1,1% with a ceiling of CHF 148'200, LAINF between 0,7% and 1,5%, and LPP between 7% and 18% according to age bracket, from age 25.

Four checks on net pay

The first check is the tax withholding: it must be considered within the cross-border commuter regime, not automatically added to an Italian tax on the same income. The second concerns contributions: AVS and LPP are not synonyms and should not be grouped under a single generic item. The third is the AD/AC limit, which becomes relevant when remuneration exceeds CHF 148'200. The fourth concerns age, because the LPP percentage is expressed by age bracket and starts at age 25.

LAMal is another decision to keep separate. It is health insurance; G cross-border commuters have the right to choose, and the deductible for adults is between CHF 300 and CHF 2500. The actual cost should therefore not be described as a tax on health. For personal choice, the confronto LAMal e assicurazione malattia helps avoid confusing coverage and tax.

On the Italian side, the source indicates IRPEF rates of 23%, 35% and 43% for 2024-2025 income, while from 2026 it indicates 23% up to €28'000, 33% from €28'001 to €50'000 and 43% above €50'000. These figures do not cancel out the rule on Swiss withholding: they must be read without turning IRPEF into a second automatic tax on the cross-border commuter's employment income.

Commute and cost of living

For Carugo, the source does not indicate travel times, connections, housing costs or a ranking of recommended areas. It is more correct to use confronto del costo della vita and tempi di attesa ai valichi as separate checks, without attributing a precise time to Brogeda or presenting one area as certainly more convenient. Ticino-Italia rebates should also be analyzed on their own terms, not confused with individual withholding.

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Checklist before the move

An operational plan can be developed without anticipating figures that the source does not provide. The first step is to set the reference date: 17 July 2023 to distinguish between the old and new cross-border worker. The second is to note the regime: exemption of €7'500 and 2024-2033 transitional period for the first group, €10'000 allowance for the second. The third is to check that employment income is subject to withholding tax only in Switzerland.

From the payslip to the 730

Fourth step: retain the Swiss withholding amount and arrange the tax credit in section CE of the 730, so as to apply the Italian mechanism against double taxation. Fifth: read the AVS/AI/IPG, AD/AC, LAINF and LPP entries with their respective percentages and, for AD/AC, with the CHF 148'200 cap. There is no need to add different entries into a single coefficient: the 5,3% AVS/AI/IPG, 1,1% AD/AC, 0,7-1,5% LAINF and 7-18% LPP describe separate components.

Sixth step: open the healthcare chapter. Those who fall among G cross-border workers must consider the LAMal right of option and the adult deductible between CHF 300 and CHF 2500. For the institutional aspect, tax rates are not set by UFAS or BFS: they are established by federal and cantonal laws and administered by AFC/ESTV at federal level and by the cantonal tax administrations. This distinction avoids using a pension or statistical body as a tax reference.

Seventh step: separate route planning from income planning. If Brogeda is considered, the source does not provide times for Carugo. The same applies to housing affordability: before moving, compare the economic items without attributing amounts not included. For the exchange between CHF and euros, comparatore CHF/EUR can be used, while informazioni sui ristorni Ticino-Italia and the guide to Permesso G/B remain available for refunds and permits.

The IRPEF rates referred to for 2026 should be noted separately: 23% up to €28'000, 33% between €28'001 and €50'000, 43% over €50'000. They do not replace verification of the Swiss withholding. For an orderly estimate of available income, use calcolatore fiscale dello stipendio.

Frequently Asked Questions

When did the New Frontier Agreement come into force?: It entered into force on 1 January 2024. The agreement was signed on 23 December 2020 and the Italian ratification took place with Law 83 of 13 June 2023. The date of 17 July 2023 serves to distinguish old frontier workers, already such before that day, from new frontier workers. The tax treatment changes: exemption of €7,500 in the transitional regime for the former and exemption of €10,000 for the latter.
Where is the border worker's income tax withheld?: For the income from work of the border worker, the deduction takes place only in Switzerland. Italy avoids double taxation by means of the tax credit to be indicated in the EC framework of 730. The rule does not provide for automatically adding a second Italian tax on the same income. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976.
What is the difference between old and new frontiersmen?: The old cross-border commuters are those already in place before 17 July 2023: they are exempted for €7,500 under the transitional regime 2024-2033. The new frontier workers have a deductible of €10,000. The distinction must be made before interpreting the tax at source or comparing a paycheck.
What does the Swiss contribution framework include?: The rates indicated by the source are 5.3% for AVS/AI/IPG borne by the employee, 1.1% for AD/AC with a ceiling of CHF 148'200, 0.7-1.5% for LAINF and 7-18% for LPP based on the age group from the 25th year. They are different items and not a single overall rate.
What does LAMal mean for a G-boundary?: LAMal is health insurance. Border workers with a G permit have the right of option; for adults, the deductible indicated by the source ranges from CHF 300 to CHF 2500. LAMal should therefore be assessed separately from tax at source and payroll contributions. It is not described in the text as a health tax.