If I work in Switzerland as a border worker, why do I still have to file an Italian tax return?

Because you are a tax resident in Italy by Italian law. The Italian-Swiss Convention of 9 December 1976 grants the right of main taxation in Switzerland for the income of employees, but Italy has the right to tax the worldwide income of residents. To avoid double taxation, the model 730 with the EC framework allows the tax credit: declare the Swiss tax and bring it as a deduction of the Italian personal income tax. It is a fiscal balancing mechanism.

What concretely changes in my monthly net with the New Deal from 2024?

The exemption of €7,500 (old border guards) or €10,000 (new border guards) reduces the tax base on which Switzerland applies the federal and cantonal source tax. Does not change AVS, LPP, LAINF, unemployment insurance: they remain the same. The practical effect is that less Swiss tax is taken from the paycheck each month, so the gross net is slightly higher. In 730, the Swiss tax credit will be lower (because you paid less tax in Switzerland), but the net total (CH + IT) remains advantageous.

How can I check if my employer is correctly applying the New Agreement exemption?

Check the Swiss Tax Certificate (downloadable from the AFC/ESTV website with your credentials). The 'Taxable income' section must show the gross minus the exemption (€7,500 or €10,000, proportionate to the months worked). If the Certificate shows full gross without reduction, please contact the Cantonal Contributions Office of your working canton (AFC/ESTV) for a correction. It is rare for the employer to make mistakes, but it is your responsibility to check.

Who do I contact if I have questions about calculating the tax at source on my paycheck?

Your Swiss employer is responsible for calculating and paying the tax at source. If you suspect an error, you can directly contact the Cantonal Contributions Office (AFC/ESTV) in the canton where you work, or a Swiss trade union structure. In Italy, the Revenue Agency (border desks in the provinces of Como, Varese, Novara) offers free advice to verify the correct treatment in 730. A Ticino tax consultant specialising in frontier workers can also audit your situation for a few CHF.

If I work part-time, how does the New Deal exemption apply?

The exemption is annual (€7,500 or €10,000 per year), proportionate to the actual months of work. If you work 6 months full-time and 6 months part-time, Switzerland applies the full exemption over 12 months, so the average monthly reduction is more than 12% of gross. If the report starts in the middle of the year, the exemption is divided over the remaining months. The employer should apply it automatically; if not, ask for clarification with the Tax Certificate in hand.

Border payroll 2026: actual net and New Deal (cross-border guide)

Di Marco Ferrari · Published on 23 August 2026

Professional workspace with laptop and Swiss payslip document, Bellinzona skyline in background

How the net is formed from the Swiss paycheck. Tax at source, AVS, LPP, exemption €7,500-10,000 from the New Frontier Agreement and procedure 730 in Italy.

Context

In brief

Deduct only from Swiss income, never from Italian income to avoid double taxation
New Frontier Agreement from January 1, 2024: exemption of €7,500 (old) or €10,000 (new frontiersmen)
Mandatory contributions: AVS/AI/IPG 5.3%, LPP 7-18%, LAINF 0.7-1.5%, unemployment insurance 1.1%

Key facts

What: Structure of the Swiss pay slip and calculation of net income for Italian frontiersmen
When: In force from January 1, 2024 (New Frontier Agreement)
Where: Frontiersmen in the canton of Ticino with a G permit (Italian residence, Swiss work)
Who: Ticino cantonal administrations and AFC (Federal Administration of Contributions)
AVS/AI/IPG quota: 5.3% deducted from gross
LPP (second pillar): 7-18% based on age (from 25 years)
Annual exemption: €7,500 (old frontiersmen before July 17, 2023) or €10,000 (new)

The frontierman who works in Switzerland with a G permit has a special tax status: the pay slip tax is not paid in double (Switzerland and Italy), but mainly in Switzerland through withholding at the source, while Italy recognizes a tax credit in the annual declaration (model 730, CE form). This mechanism is established by the 1976 Italian-Swiss Convention signed on December 9, 1976 and remains unchanged.

From January 1, 2024, the New Frontier Agreement (signed on December 23, 2020, ratified by Italy with Law 83 of June 13, 2023) has introduced a regime of income protection: the withholding tax applies to a reduced taxable base for a transitional period until 2033.

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Operational details

How the New Border Agreement Reduces Tax from 2024

Before January 1, 2024, the border worker paid source tax on the entire gross, without special normative shields beyond the usual Swiss credits and deductions (stock portfolio, union contributions, etc.). The only advantage was the tax credit in the 730.

From January 1, 2024, the Agreement introduces a partial exemption regime from taxable income in Switzerland, which does not exist in any other EU country for border workers:

For old border workers (active G permit before July 17, 2023): the taxable income in Switzerland for source tax is Gross minus €7,500 per year (transitional regime 2024-2033). If the gross is CHF 60,000 per year, the federal and cantonal tax is calculated on CHF 52,500, significantly reducing what is collected.

For new border workers (registered from July 17, 2023 onwards): the taxable income is Gross minus €10,000 per year, a more favorable amount from the first day of work in Switzerland.

The transitional regime means that the amount of the exemption may increase in the following years according to the Agreement's calendar, always to the benefit of the border worker.

Attention: the exemption does not cover social contributions

A crucial aspect often misunderstood: the exemption of €7,500 or €10,000 reduces ONLY the taxable income for source tax (federal and cantonal taxes), NOT the compulsory social contributions managed by SECO/UFSP/SUVA.

Therefore, even with the exemption in force: AVS/AI/IPG remains 5.3% on the entire gross; LPP (second pillar) remains 7-18% of the entire gross; LAINF and unemployment insurance remain applied to the full gross. The exemption is not a reduction of the gross, but a reduction of the taxable income for taxes. Social protection remains complete.

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Key points

Procedure and steps to calculate your real net income

As a frontier worker, your real net income depends on various variables that need to be actively verified every year. It is not an automatic calculation; it requires administrative awareness.

Step 1: Check your status as a new or old frontier worker

The date of issue of the G Permit in your passport is crucial for the amount of the exemption: G Permit issued before July 17, 2023 → exemption of CHF 7,500 per year (transitional regime 2024-2033); G Permit issued from July 17, 2023 onwards → exemption of CHF 10,000 per year.

Required documents: copy of G Permit, Italian residence certificate from the Italian municipality of residence, Swiss employer's documentation indicating the start date of employment.

Step 2: Analyze each item on your Swiss salary slip

There is no "net income equal for all." Each Ticinese municipality has a different tax rate. Here's what to check month by month: gross income declared (base for calculation); federal income tax (applied by AFC/ESTV according to federal tax rates); cantonal tax (varies by workplace municipality: Bellinzona, Lugano, Locarno, Mendrisio, Chiasso, etc.); AVS/AI/IPG (5.3% fixed of gross income); LPP according to the second pillar (7-18% depending on age); LAINF (0.7-1.5% on insured basis); unemployment insurance (1.1% up to CHF 148,200 annual cap); LAMal (if you are registered with the Swiss insurance, it is a fixed annual contribution of CHF 300-2,500; if you are in option with the Italian INPS, the employer does not deduct it).

If the employer does not communicate the exact tax rate applied, you can verify it autonomously through the AFC/ESTV website (Federal Administration of Contributions, Ticino section) or in person.

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Frequently Asked Questions

If I work in Switzerland as a border worker, why do I still have to file an Italian tax return?: Because you are a tax resident in Italy by Italian law. The Italian-Swiss Convention of 9 December 1976 grants the right of main taxation in Switzerland for the income of employees, but Italy has the right to tax the worldwide income of residents. To avoid double taxation, the model 730 with the EC framework allows the tax credit: declare the Swiss tax and bring it as a deduction of the Italian personal income tax. It is a fiscal balancing mechanism.
What concretely changes in my monthly net with the New Deal from 2024?: The exemption of €7,500 (old border guards) or €10,000 (new border guards) reduces the tax base on which Switzerland applies the federal and cantonal source tax. Does not change AVS, LPP, LAINF, unemployment insurance: they remain the same. The practical effect is that less Swiss tax is taken from the paycheck each month, so the gross net is slightly higher. In 730, the Swiss tax credit will be lower (because you paid less tax in Switzerland), but the net total (CH + IT) remains advantageous.
How can I check if my employer is correctly applying the New Agreement exemption?: Check the Swiss Tax Certificate (downloadable from the AFC/ESTV website with your credentials). The 'Taxable income' section must show the gross minus the exemption (€7,500 or €10,000, proportionate to the months worked). If the Certificate shows full gross without reduction, please contact the Cantonal Contributions Office of your working canton (AFC/ESTV) for a correction. It is rare for the employer to make mistakes, but it is your responsibility to check.
Who do I contact if I have questions about calculating the tax at source on my paycheck?: Your Swiss employer is responsible for calculating and paying the tax at source. If you suspect an error, you can directly contact the Cantonal Contributions Office (AFC/ESTV) in the canton where you work, or a Swiss trade union structure. In Italy, the Revenue Agency (border desks in the provinces of Como, Varese, Novara) offers free advice to verify the correct treatment in 730. A Ticino tax consultant specialising in frontier workers can also audit your situation for a few CHF.
If I work part-time, how does the New Deal exemption apply?: The exemption is annual (€7,500 or €10,000 per year), proportionate to the actual months of work. If you work 6 months full-time and 6 months part-time, Switzerland applies the full exemption over 12 months, so the average monthly reduction is more than 12% of gross. If the report starts in the middle of the year, the exemption is divided over the remaining months. The employer should apply it automatically; if not, ask for clarification with the Tax Certificate in hand.