Gornate Olona: working in Ticino as a border worker

Context

TL;DR

• Agreement signed on 23 December 2020
• Effective January 1, 2024
• Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).
• 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.

Key facts

• Withholding tax: withheld in Switzerland
• Agreement: signed on December 23, 2020
• Entry into force: 1 January 2024
• Italian ratification: Law 83 of 13 June 2023
• Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).
• Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).
• 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.
• Convention: 9 March 1976

The tax framework for those leaving Gornate Olona

On 23 December 2020, the New Cross-Border Agreement between Italy and Switzerland was signed. Its entry into force is set for January 1, 2024; for Italy the ratification came with Law 83 of 13 June 2023. For those who live in Gornate Olona and work in the Canton of Ticino, these dates are the first reference to check before setting up the transfer.

The reference called the new tax agreement does not indicate the effective date of the agreement: the correct reference is 1 January 2024. 2026 instead concerns the Italian IRPEF rates indicated in the source, not the start of the cross-border commuter regime.

Withholding tax and double taxation

The cross-border worker's income from work is subject to withholding in Switzerland. Italy avoids double taxation through the tax credit, which is indicated in the EC framework of 730. For the reader, the practical consequence is clear: the initial calculation must start from the Swiss pay slip and the related withdrawal, without automatically adding a second Italian tax on the same income.

The distinction between old and new cross-border commuters determines the exemption to be considered. 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 starting date of the frontier worker condition therefore becomes a concrete verification, not a formal detail.

The previous framework remains the Italy-Switzerland Convention against double taxation, signed on 9 March 1976. Switzerland is not a member of the EU or the EEA: for this reason the reading of the bilateral rules must remain separate from the simplifications based on European membership.

Tax rates, including federal and cantonal withholding tax, are established by federal and cantonal laws. At federal level they are administered by the AFC/ESTV; for the cantonal part, the cantonal tax administrations intervene. A cross-border worker can combine this check with the calcolatore del netto in busta paga, using his own actual situation.

Operational details

The paycheck and the choice of house

For those considering the transfer from Gornate Olona, the disposable income does not coincide with the sole amount of income from work. The correct reading passes through the social security and insurance items that affect the net, while the choice of home requires a separate comparison with commuting and daily expenses.

The entries to read before the net

The age data is relevant for the LPP, because the source indicates a percentage between 7% and 18% per age group starting from 25 years. For AVS/AI/IPG the reference indicated is 5.3% paid by the employee. The AD/AC is equal to 1.1% with a limit of CHF 148'200, while the LAINF is between 0.7% and 1.5%. These items should be read together, not replaced with a single percentage.

Alongside social security there is KVG, i.e. health insurance. Cross-border commuters with a G permit have the right to choose and the deductibles for adults indicated in the source range from CHF 300 to CHF 2,500. It is a distinct choice from withholding tax, but it enters into the planning of monthly expenditure and must be considered when comparing housing alternatives.

Italian tax authorities: comparison without double withholding

For 2026 the source indicates Italian IRPEF rates of 23% up to €28,000, 33% between €28,001 and €50,000 and 43% over €50,000, based on Law 199/2025, article 1, paragraph 3. The rates are indicated for 2024–2025 income 23%, 35% and 43%. These values ​​do not cancel the rule of withholding in Switzerland and of the tax credit in the EC framework of 730.

Switzerland does not belong to the EU or the EEA, therefore it is not convenient to automatically assimilate its system to the Italian or European one. For the housing part, without verified values ​​it is not necessary to attribute travel times, connections or standard costs to Gornate Olona. The cost of living comparison helps to sort the items to be evaluated, while the AVS and LPP guide clarifies the social security component.

Useful tools for your case

To conveniently check your scenario within/beyond 20 km, use the net salary calculator and tax return guide.

Key points

Before the transfer: the operating sequence

Five checks for the cross-border worker

1. Set the reference date. Check if you were already a cross-border worker before 17 July 2023. 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.

2. Separate withholding and reporting. The first check concerns the withholding tax, which is withheld in Switzerland for the cross-border worker's income from work. The second concerns Italy: the tax credit is indicated in the EC framework of 730 and serves to avoid double taxation.

3. Rebuild the net. Read the AVS/AI/IPG, AD/AC, LAINF and LPP entries on the pay slip. The available references are 5.3% for AVS/AI/IPG, 1.1% for AD/AC with cap CHF 148'200, 0.7–1.5% for LAINF and 7–18% for LPP based on the age group from the 25th year.

4. Check your health coverage. If the position is that of a cross-border commuter with a G permit, consider the right of option for the KVG. The deductibles for adults indicated in the source are between CHF 300 and CHF 2'500. The G/B permit guide can help keep the administrative part separate from the healthcare part.

5. Keep the Italian framework separate. For 2026 the source indicates 23% up to €28,000, 33% between €28,001 and €50,000 and 43% over €50,000; for 2024–2025 incomes it indicates 23%, 35% and 43%. They are data to be used for Italian planning, without transforming them into a second withholding on income already subject to Swiss withholding tax.

The choice of house must then be accompanied by a concrete comparison between daily costs, commuting and family organisation. When these elements are collected, the net salary calculator allows you to transform the available data into an operational estimate.