border engineer Ticino salary requirements

Context

In a nutshell

• New Frontier Agreement signed on 23/12/2020, effective from 1/1/2024
• For Article 9 of the Agreement, “old frontier workers” are people who met the tax requirements and worked in Graubünden, Ticino or Valais on 17 July 2023 or during the period from 31 December 2018 through 17 July 2023. Article 9 keeps covered employment income taxable exclusively at source in Switzerland; other workers follow the ordinary regime, with ordinary taxation in Italy, a credit for Swiss tax and Swiss withholding at 80% of the ordinary rates. The €10,000 figure in Article 4 of Italian Law No. 83/2023 is only the income limit referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance for new frontier workers. Sources: ESTV factsheet (Italian) · Agreement, Art. 9 · Law No. 83/2023, Art. 4.
• Withholding tax withheld in Switzerland; Italy applies tax credit (EC framework of 730)

Key facts

• What: New Italy-Switzerland Border Agreement
• When: signed December 23, 2020, effective January 1, 2024
• Where: Switzerland-Italyrelations, crosses as Brogeda
• Who: Swiss and Italian governments (SECO, SEM, MEF, Revenue Agency)
• The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013.
• Swiss rates: AVS/AI/IPG 5.3% employee; AD/AC 1.1% (CHF 148'200 ceiling); LAINF 0.7‑1.5%; LPP 7‑18% by age group
• Italian personal income tax: 23% up to €28,000, 33% €28,001-50,000, 43% over €50,000
• Double taxation: Convention 9 March 1976; Switzerland non-EU/EEA

The New Frontier Agreement between Italy and Switzerland, which entered into force on 1 January 2024, was signed on 23 December 2020. The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. The tax at source on income from work is withheld in Switzerland; Italy avoids double taxation by means of the tax credit to be indicated in the EC framework of form 730.

Contributions

Operational details

Practical scenarios for the cross‑border engineer

An engineer who decides to work in Ticino as a cross‑border worker must consider several operational aspects. First, the G permit application is submitted to the Ticino cantonal labour office, attaching the employment contract, passport, recognised degree and proof of domicile in Italy. The G permit allows daily return to Italy and work in Switzerland without the need to transfer residence.

On the social security front, AVS and LPP contributions are withheld directly from the Swiss salary and are later coordinated with the Italian INPS through totalisation agreements. This enables the aggregation of insurance periods paid in the two countries for the calculation of old‑age or disability pension.

Regarding health insurance, the cross‑border worker has the option to join the Swiss LAMal system or keep Italian coverage. The choice must be communicated within three months of starting work and entails payment of the relative premium, with an annual deductible ranging from CHF 300 to CHF 2,500 for adults.

The withholding tax, calculated according to Ticino cantonal rates, is deducted from the payslip each month. At the end of the fiscal year, the cross‑border worker must fill out the Italian 730 form, indicating in box CE the income earned in Switzerland to benefit from the tax credit and avoid double taxation.

Comparison between old and new regime

The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. This difference directly affects the amount of Italian tax due after the tax credit.

Calcolo imposta alla fonte

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

What to do step-by-step

1. Degree Verification – Contact SECO or SEM to start the process of recognizing your engineering degree. 2. Application for the G permit – Apply at the labour office of the Canton of Ticino (based in Bellinzona or Lugano) with a contract, passport, recognized title and proof of residence in Italy. 3. Opening of the insurance position – Decide whether to join the Swiss LAMal or maintain Italian coverage; communicate the choice to your health insurance fund within 90 days. 4. Occupational Pension Enrollment – The employer will enroll you in the LPP; check the applicable percentage based on your age. 5. Tax management – Every month you will receive the salary net of AVS/AI/IPG, AD/AC, LAINF and LPP deductions. At the end of the year, fill in the 730 indicating the Swiss income in the EC framework to obtain the Italian tax credit.

Important deadlines

• G leave: to be renewed annually, usually by the end of February for the following year.
• LAMal option rights: exercisable within three months from the start of the work.
• Italian tax return: submission of 730 by 30 June of the following year.

To deepen and simulate the net salary considering Swiss withholdings and the Italian tax credit, use our dedicated tool.

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