What is the difference between the pre-2024 border regime and the new 2024 agreement?

The old regime provided for a double taxation managed by Italian tax credit. The new agreement (in force from 1 January 2024) introduces a withholding tax withheld ONLY in Switzerland, while Italy automatically recognises the tax credit in the EC framework of 730. The new regime introduces basic deductibles: €7,500 per year for 'old' border workers (already such before 17 July 2023) with transitional regime until 2033, and €10,000 for new border workers. This reduces the tax burden and simplifies the Italian declaration.

How do I know if I fall into the 'old border' or 'new' category?

You are an 'old frontier worker' if you were employed in Switzerland and resident in Italy before 17 July 2023. In this case, access the exemption of €7,500 per year with a guaranteed transitional regime until 31 December 2033. If you started the frontier business from 17 July 2023 onwards, you are 'new frontier' and benefit from the deductible of €10,000 per annum. The distinction is relevant for the calculation of taxes: check your business start date in the employment contract.

Is it true that only Switzerland pays the tax at source, not Italy?

Yes, exactly. Under the new agreement, the tax at source is only withheld by the Swiss authorities. Italy DOES NOT apply a second withholding tax on the declared tax base. However, Italy still applies ordinary personal income tax, recognizing the tax credit for what was paid in Switzerland in the EC framework of 730. For this reason, it is important to correctly declare both the gross income and the Swiss tax paid in the Italian declaration.

What are the Swiss social contributions that keep me off my paycheck?

The main ones are: AVS/AI/IPG (5.3%), AD/AC Unemployment Insurance (1.1% with a ceiling of CHF 148,200), LAINF accident insurance law (0.7–1.5%), and LPP occupational pension law (7–18% according to age group, from 25 years). Italian IRPEF applies in stages: 23% up to €28,000, 35% from €28,001-€50,000, 43% above €50,000. The exact amount depends on your gross income and age group; use the calculator for an accurate estimate.

Do I have to have the G Permit to be recognized as a border worker?

Yes. The G Permit is the border work permit issued by the SEM (Secretariat of State for Migration) and managed by the Canton of Ticino through the Department of Justice. The Swiss employer submits the request to the competent authorities. Once obtained, you are officially cross-border and access the tax and social security regime described by the 2024 agreement. Without Permit G, your status is different (it could be Permit B for temporary employees), with different tax implications.

Living in Ferrera di Varese and working in Ticino as a border worker (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 19 August 2026

Cross-border commuters heading to work in Ticino canton from Italian border region at dawn

New 2024 agreement, Swiss source tax, deductibles €7,500-€10,000 and Italian tax return for those working in the Canton of Ticino.

Context

In a nutshell

New border agreement in force from 1 January 2024 with new deductibles for income
Tax at source withheld ONLY in Switzerland, tax credit in Italy
Old frontier workers: €7,500 exemption with transitional regime until 2033
AVS/AI rates 5.3%, LPP 7–18%, Italian personal income tax up to 43% for high incomes

Key facts

What: New CH-IT border agreement with deductibles and transitional regime
When: Effective January 1, 2024; signed December 23, 2020
Where: Italy-Switzerland Frontier (Canton Ticino)
New deductibles: €10,000 per year
Old deductibles: €7,500 with the 2024–2033 regime
Tax at source: Withheld only in Switzerland

On 1 January 2024, the new agreement between Switzerland and Italy on the taxation of border workers entered into force, transforming the tax regime for those who reside in the Italian border territory and work in Swiss territory, in particular in the Canton of Ticino. Those who move to Ferrera di Varese to access Ticino jobs will face daily commuting through cross-border crossings (such as Brogeda or other entrances in the Canton of Ticino), a practical aspect that is accompanied by significant tax benefits introduced by the agreement signed on 23 December 2020 and ratified by Italy through Law 83 of 13 June 2023.

What's changing for border crossers from 2024

The previous regime provided for a double taxation managed through the tax credit

Operational details

Implications on paycheck and tax declaration

The Swiss social contributions (AVS, AI, IPG) are paid by the employee at a rate of 5.3% on the taxable base. These are added to the contributions related to unemployment insurance (AD/AC) at 1.1% (with a maximum of CHF 148,200), the Accident Insurance Law (LAINF) between 0.7% and 1.5%, and the Professional Old-Age Insurance Law (LPP) which varies from 7% to 18% based on the age range starting from 25 years. Although these contributory rates are borne by the worker, the Italian frontier benefits from facilitated management thanks to the tax applied in Switzerland.

In Italy, the frontier must still submit the tax declaration (model 730 or model Redditi). In the EU model of the 730, he declares the income earned in Switzerland and the tax credit for the tax already paid in Switzerland, thus avoiding new Italian taxation. The Italian IRPEF applies in brackets: 23% up to €28,000, 35% from €28,001 to €50,000, and 43% for amounts exceeding €50,000. The Convention between Italy and Switzerland signed on 9 December 1976 regulates the avoidance of double taxation and constitutes the reference legal framework.

During the declaration, it may emerge tax refunds (i.e. reimbursements) if the amount of the Swiss tax withheld and the Italian tax credit is higher than the IRPEF due. These refunds are paid directly by the Italian Revenue Agency in the subsequent declaration.

…

Key points

Health Insurance (LAMal) for Border Crossers

Border crossers with a G Permit have the right to opt between Swiss health insurance (LAMal) and standard Italian insurance through INPS. Swiss LAMal offers coverage with adult deductibles ranging from CHF 300 to CHF 2500, while Italian insurance has a different framework. This choice should be made consciously, as it affects annual healthcare expenses and coverage in both countries. The option must be communicated to the competent authorities at the time of the G Permit request.

Annual Tax Deadlines and INPS Verifications

Italian income tax returns must be submitted by May 31 of the following year (or following any applicable extensions). INPS, regarding insurance status, recognizes Swiss AVS/AI payments through the 9 December 1976 Bilateral Convention: the coordination is automatic once the border crosser is regularly registered with the competent Swiss authorities. However, it is advisable to verify one's pension position annually with INPS to avoid contributory gaps that could penalize future pension calculations.

Your Next Steps

If you are considering transferring to Ferrera di Varese while keeping your job in Ticino, first verify with your employer whether the company structure is set up to handle border crosser hires. Then, use the salary calculator to estimate the fiscal and pension impact of your specific situation — taking into account the applicable deductible (€7,500 or €10,000 based on your age) and the Swiss rates provided by the 2024 agreement. Contact the SEM (State Secretariat for Migration) to check the processing times for the G Permit in the destination canton. Finally, consult the Italian Revenue Agency to understand how to correctly complete the CE box of your 730 declaration with the Swiss tax credit.

Frequently Asked Questions

What is the difference between the pre-2024 border regime and the new 2024 agreement?: The old regime provided for a double taxation managed by Italian tax credit. The new agreement (in force from 1 January 2024) introduces a withholding tax withheld ONLY in Switzerland, while Italy automatically recognises the tax credit in the EC framework of 730. The new regime introduces basic deductibles: €7,500 per year for 'old' border workers (already such before 17 July 2023) with transitional regime until 2033, and €10,000 for new border workers. This reduces the tax burden and simplifie
How do I know if I fall into the 'old border' or 'new' category?: You are an 'old frontier worker' if you were employed in Switzerland and resident in Italy before 17 July 2023. In this case, access the exemption of €7,500 per year with a guaranteed transitional regime until 31 December 2033. If you started the frontier business from 17 July 2023 onwards, you are 'new frontier' and benefit from the deductible of €10,000 per annum. The distinction is relevant for the calculation of taxes: check your business start date in the employment contract.
Is it true that only Switzerland pays the tax at source, not Italy?: Yes, exactly. Under the new agreement, the tax at source is only withheld by the Swiss authorities. Italy DOES NOT apply a second withholding tax on the declared tax base. However, Italy still applies ordinary personal income tax, recognizing the tax credit for what was paid in Switzerland in the EC framework of 730. For this reason, it is important to correctly declare both the gross income and the Swiss tax paid in the Italian declaration.
What are the Swiss social contributions that keep me off my paycheck?: The main ones are: AVS/AI/IPG (5.3%), AD/AC Unemployment Insurance (1.1% with a ceiling of CHF 148,200), LAINF accident insurance law (0.7–1.5%), and LPP occupational pension law (7–18% according to age group, from 25 years). Italian IRPEF applies in stages: 23% up to €28,000, 35% from €28,001-€50,000, 43% above €50,000. The exact amount depends on your gross income and age group; use the calculator for an accurate estimate.
Do I have to have the G Permit to be recognized as a border worker?: Yes. The G Permit is the border work permit issued by the SEM (Secretariat of State for Migration) and managed by the Canton of Ticino through the Department of Justice. The Swiss employer submits the request to the competent authorities. Once obtained, you are officially cross-border and access the tax and social security regime described by the 2024 agreement. Without Permit G, your status is different (it could be Permit B for temporary employees), with different tax implications.