Change of employer for border workers within 20 km: G permit

Context

TL;DR

• The New Agreement is in force from 1 January 2024
• Tax at source is withheld only in Switzerland
• Old frontier workers: €7,500 in the transitional regime 2024–2033
• New frontier workers: deductible of €10,000

Key facts

• Agreement: signed 23 December 2020; effective from 1 January 2024
• Italian ratification: Law 83 of 13 June 2023
• Old cross-border commuters: €7,500, transitional regime 2024–2033
• New cross-border commuters: €10,000 deductible
• Convention: signed on 9 March 1976

The New Cross-border Workers Agreement was signed on 23 December 2020, which came into force on 1 January 2024. For the cross-border worker who changes employer to the Canton of Ticino in 2026, the first check is therefore chronological: 2026 is the year of the procedure to be addressed, not the start date of the agreement. The Italian ratification dates back to Law 83 of 13 June 2023.

The dossier must keep together the new employment relationship, the Permesso G/B and cross-border taxation. The reference within 20 km must also be included in the overall verification, without replacing the checks on income and withholdings. Switzerland is not a member of the EU/EEA, which should not be confused with the specific regulations of the Canton of Ticino and with the Italy-Switzerland agreements.

The calendar of the agreement

The Italy-Switzerland Convention against double taxation was signed on 9 March 1976. The New Cross-Border Agreement instead has 23 December 2020 and 1 January 2024 as references. Separating the two acts avoids attributing the entry into force of the more recent agreement to the 1976 Convention. For this reason, the agreement should not be dated 2026: the date of entry into force remains 1 January 2024.

Taxes and deductibles

For earned income, withholding tax is applied exclusively in Switzerland. In Italy, double taxation is neutralized through the tax credit indicated in the EC framework of 730. In the new pay slip, therefore, the Italian credit should not be confused with a second withholding.

Federal and cantonal laws establish withholding tax rates; At the federal level, management is the responsibility of the AFC/ESTV, while the respective tax administrations intervene in the cantons. UFAS and BFS have different tasks: the first follows social security and the second collects statistical data; therefore neither determines these rates.

The deductible must be linked to the category provided for in the agreement. Old cross-border commuters, already such before 17 July 2023, have an exemption of €7,500 in the transitional regime 2024–2033; new cross-border commuters have a deductible of €10,000. When changing employers, category verification precedes any automatic reading of the 2026 calendar.

Operational details

The change of employer should be read as a continuity check, not as an indistinct sum of percentages. For the cross-border worker, the pay slip of the new relationship must be analyzed by blocks: withholding tax, social contributions and health insurance. This reading is also useful when the research is concentrated on the perimeter within 20 km: the distance does not replace the comparison between the items actually reported.

Comparison of withholdings

These percentages are not income tax rates. For 2024–2025 incomes the source indicates 23%, 35% and 43%; from 2026 it indicates 23% up to €28'000, 33% from €28'001 to €50'000 and 43% over €50'000, according to Law 199/2025, art. 1 c. 3. In the passage, the comparison helps not to confuse the Swiss levy with the Italian taxation linked to the tax credit.

Two categories not to overlap

A hypothetical scenario clarifies the point: a cross-border worker who changes employer in 2026 must first check whether he was already a cross-border worker before 17 July 2023. From this position comes the interpretation of the exemption of €7,500 in the transitional regime 2024–2033 or of the €10,000 exemption provided for new cross-border workers. The procedure does not consist of adding the two amounts.

On the healthcare side, KVG is health insurance. G cross-border commuters have the right to choose and the deductibles for adults range from CHF 300 to CHF 2,500. The item must be kept separate from AVS/LPP contributions: the change of employer must not become a reason to read health coverage as a social security deduction.

For those passing through Brogeda, the location of the journey can accompany the procedure, but the economic check must be done on the pay slip, tax category and social items. In the file, refunds, withholding tax and credit from the EC framework must be recorded separately.

Key points

The practical procedure starts from the exit date and ends with the first check of the new pay slip. For cross-border workers, the checklist must separate notice, G permit, withholding tax, continuity of contributions and KVG. The reference within 20 km accompanies the dossier, but does not replace these checks.

Before the changeover date

1. Notice: notes the exit and start of the new relationship; check the deadline applicable to the current relationship before setting the date. 2. Permit G: collect the permit documentation and check for any update or renewal linked to the change of employer. 3. Taxation: separates the Swiss withholding tax, the credit from the EC framework of 730, the old or new cross-border category and the reference to 2026. 4. Contributions: compare AVS/AI/IPG, AD/AC, LAINF and LPP between the previous and new documentation. 5. KVG: records the choice linked to the right of option and the adult deductible indicated for cross-border commuter G.

After the first payslip

When your first paycheck arrives, look for a separate reading of the tax, social and health items. The comparison serves to follow the continuity of contributions, not to add the percentages as if they were a single rate. For the Italian part, it retains the reference to the EC framework and the tax credit.

If the file concerns old or new cross-border commuters, note the category together with the dates of the agreement: 23 December 2020 for signature and 1 January 2024 for entry into force. So the move isn't filed as a 2026 deal.

The healthcare part remains autonomous: KVG is the health insurance, cross-border commuter G has the right to option and the adult deductible is between CHF 300 and CHF 2,500. Also keep references to refunds and withholding tax separate.

It is also a useful sequence for those who pass through Brogeda and work in the Canton of Ticino, because it leads each entry to the right document. Tax rates are administered by AFC/ESTV and the cantonal tax administrations, not by UFAS or BFS. To compare salary, net and taxes, use calcolatore fiscale.