Where is a frontier worker's income tax withheld?

For frontier workers, income tax is only withheld in Switzerland. Italy avoids double taxation through the tax credit indicated in the EC framework of 730. The point is not to apply the same tax in both countries: the withholding is Swiss, while the Italian declaration uses the expected credit.

What is the difference between old and new frontiersmen?

An old frontier worker is someone who was an old frontier worker before 17 July 2023. For this category, an exemption of 7,500 euros is provided, with a transitional regime from 2024 to 2033. The new frontier workers, on the other hand, have a deductible of 10,000 euros. The distinction therefore depends on the border status on the date indicated, not on the only subsequent choice of residence.

What Swiss contributions affect the paycheck?

The indicated data distinguish AVS/AI/IPG at 5.3% for the employee, AD/AC at 1.1% with cap at CHF 148'200, LAINF between 0.7% and 1.5% and LPP between 7% and 18% by age group from the 25th year. These are different items and must be read separately from the tax at source and the Italian personal income tax.

What is the LAMal right of option for G border workers?

G border workers have the right of option for LAMal, health insurance. For adults, the deductibles indicated range from CHF 300 to CHF 2,500. The right of option and the deductible belong to the health control to be done separately with respect to taxation, contribution rates and the choice of residence.

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

Di Marco Ferrari · Published on 30 September 2026

Cross-border worker between Italy and Ticino in an Alpine landscape

New Cross-Border Workers Agreement: signed on December 23, 2020, in force from January 1, 2024, with different exemptions for old and new cross-border workers.

Context

In brief

The New Agreement was signed on 23 December 2020
Entry into force: 1 January 2024
Old frontier workers: €7,500 exemption
New frontier workers: €10,000 allowance

Key facts

Employment income tax → withheld only in Switzerland
Tax credit in Italy → Section CE of the 730 form
Old frontier workers → transitional regime 2024-2033
Italy-Switzerland Convention → 9 March 1976
IRPEF from 2026 → 23%, 33%, 43%
AVS/AI/IPG → 5.3% paid by the employee
AD/AC → 1.1% up to CHF 148'200
LAMal → right of option for frontier workers with a G permit

The starting framework

The New Agreement on frontier workers was signed on 23 December 2020, ratified in Italy by Law 83 of 13 June 2023 and has been in force since 1 January 2024. For people living in Craveggia and working in Ticino as frontier workers, this sequence of dates is the reference for understanding the tax treatment before considering a move.

The correct date is not 2026: the phrase 2026 new tax agreement does not describe when the agreement entered into force. The operative step was 1 January 2024. The decisive distinction instead concerns 17 July 2023. Anyone who was already a frontier worker before that date belongs to the old frontier-worker category: an exemption of €7,500 and a transitional regime from 2024 to 2033 apply to them. New frontier workers have a €10,000 allowance.

Withholding tax and double taxation

For frontier workers, tax on employment income is withheld only in Switzerland. Italy avoids double taxation through the tax credit indicated in Section CE of the 730 form: the tax return must therefore be read together with the Swiss withholding, not as a second identical charge. For the filing step, the operational reference is the income tax return.

The Italy-Switzerland Convention against double taxation was signed on 9 March 1976. The framework must also be read in light of the fact that Switzerland is neither a member of the European Union nor of the European Economic Area. These are the basic facts to keep in view, without confusing residence in Craveggia with the place of work in Canton Ticino.

Operational details

From regulation to the payslip

For a cross-border worker, the choice to live in Craveggia and work in Ticino does not end with the tax allowance. The practical check starts with the payslip, where withholding tax and social contributions have different functions. Separating the items prevents amounts that the source assigns to the Swiss system from being attributed to Italian IRPEF.

Swiss deductions to review

AVS/AI/IPG, AD/AC, LAINF, and LPP are not a single deduction. The available data indicate separate rates: the first is 5,3% for the employee; the second is 1,1% up to the limit of CHF 148'200; LAINF ranges from 0,7% to 1,5%; LPP ranges from 7% to 18% by age bracket starting at age 25. An orderly review of the payslip starts here, without adding different percentages together as if they were a single item.

Italian taxation also changes by year. From 2026, IRPEF is indicated at 23% up to 28.000 euros, at 33% between 28.001 and 50.000 euros, and at 43% above 50.000 euros. For 2024-2025 income, the reported rates are 23%, 35%, and 43%. Comparing them with the Swiss deduction therefore requires keeping years and mechanisms separate.

The rates of federal and cantonal withholding tax are established by federal and cantonal laws. At the federal level, they are administered by AFC/ESTV, while the cantonal tax administrations are also involved. They are not rates set by UFAS or BFS. As regards residence and work, the G permit and Canton Ticino remain the practical framework for the review. When choosing a place of residence, travel times, housing costs, and area should be treated as separate checks: they cannot be inferred from the rates. A border crossing such as Brogeda belongs to this logistical check, to be considered alongside the tax check. For comparison, costo della vita Ticino vs Italia and tempi di attesa ai valichi can be used.

Key points

Checklist before moving

Before deciding whether to live in Craveggia and work in Ticino, it is advisable to turn the rules into an orderly check. The following process starts with the dates, rates and procedures referenced by the source.

1. Establish the tax category

Start from the date of 17 luglio 2023. If you were already a cross-border worker before that date, the reference is the 7.500 euro exemption with the 2024-2033 transitional regime. If you fall among new cross-border workers, consider the 10.000 euro allowance. Do not replace these two positions with the date of the move alone: the criterion provided is whether you were a cross-border worker before or after 17 luglio 2023.

2. Align withholding and tax return

Note the agreement's three dates: signed on 23 dicembre 2020, ratified by Italy with Law 83 on 13 giugno 2023, entered into force on 1° gennaio 2024. Then check that employment income has withholding tax deducted only in Switzerland. In Italy, the tax credit is entered via box CE of the 730. This is the step to use for double taxation and for dichiarazione dei redditi.

3. Review social security and healthcare items

Check AVS/AI/IPG, AD/AC, LAINF and LPP separately, applying the available figures: 5,3%, 1,1% up to CHF 148'200, 0,7-1,5% and 7-18% by age bracket from the 25° year. On the healthcare side, cross-border workers with permit G have the right to choose LAMal; the deductibles indicated for adults range from CHF 300 to CHF 2'500.

4. Keep commuting and taxes separate

Connections, travel times, cost of living and recommended areas should not be inferred from tax rates. Even when considering a border crossing such as Brogeda, the logistical check is separate from the tax one. For the final comparison between residence and work, use comparatore Permesso G vs B and then measure the effect on the payslip with calcolatore stipendio.

Frequently Asked Questions

Where is a frontier worker's income tax withheld?: For frontier workers, income tax is only withheld in Switzerland. Italy avoids double taxation through the tax credit indicated in the EC framework of 730. The point is not to apply the same tax in both countries: the withholding is Swiss, while the Italian declaration uses the expected credit.
What is the difference between old and new frontiersmen?: An old frontier worker is someone who was an old frontier worker before 17 July 2023. For this category, an exemption of 7,500 euros is provided, with a transitional regime from 2024 to 2033. The new frontier workers, on the other hand, have a deductible of 10,000 euros. The distinction therefore depends on the border status on the date indicated, not on the only subsequent choice of residence.
What Swiss contributions affect the paycheck?: The indicated data distinguish AVS/AI/IPG at 5.3% for the employee, AD/AC at 1.1% with cap at CHF 148'200, LAINF between 0.7% and 1.5% and LPP between 7% and 18% by age group from the 25th year. These are different items and must be read separately from the tax at source and the Italian personal income tax.
What is the LAMal right of option for G border workers?: G border workers have the right of option for LAMal, health insurance. For adults, the deductibles indicated range from CHF 300 to CHF 2,500. The right of option and the deductible belong to the health control to be done separately with respect to taxation, contribution rates and the choice of residence.