Living in Cambiasca, working in Ticino: frontier guide

Context

In brief

• New Cross-Border Agreement effective from 1 January 2024: withholding tax deducted in Switzerland
• Italian tax refunds through tax credit (section CE of the 730 form): no double taxation
• 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. AVS/AI 5.3% for employees
• Permit G required; LAMal optional with deductible CHF 300–2500 for adults

Key facts

• Who: Cross-border workers residing in Italy, employed in the Canton of Ticino
• Permit: Permit G according to the Convention of 9 March 1976 and the New Agreement of 23/12/2020
• Effective date: 1 January 2024 (Italian ratification: Law 83 of 13/6/2023)
• Tax: Deducted in Switzerland; Italian tax credit in section CE
• 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. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).
• Contributions: AVS/AI 5.3%, AD/AC 1.1%, LAINF 0.7–1.5%, LPP 7–18%
• Insurance: LAMal optional; deductible for adults CHF 300–2500

2024 Agreement: What changes for cross-border workers

The New Cross-Border Agreement, signed on 23 December 2020 and effective from 1 January 2024, introduces verified rules on taxation. The Italian part (Law 83 of 13/6/2023) and the Swiss part have defined the methods of withholding tax collection. The Italian-Swiss Convention on double taxation (9 March 1976) remains the underlying legal framework. For those living in Cambiasca and working in Ticino, the change is concrete: the tax on the paycheck is withheld directly in Switzerland by the employer. Italy does not levy further taxes but recognizes a tax credit in section CE of the 730 declaration, thus avoiding double taxation.

The exemption depends on when one became a cross-border worker. 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 change in regime is one of the most significant points of the 2024 agreement. In 2033, the transitional regime ends and all cross-border workers move to the ordinary regime.

Contributions and AVS: How the paycheck works

In Switzerland, from the gross paycheck, the AVS/AI/IPG contributions are deducted at 5.3% for the employee. Then there is unemployment insurance (AD/AC) at 1.1% on a maximum annual basis of CHF 148,200, and accident insurance (LAINF) between 0.7% and 1.5%. If the cross-border worker has professional pension insurance (LPP, second pillar), they contribute a percentage between 7% and 18% depending on age (from 25 years onwards). All these deductions are managed by the Federal Tax Administration (FTA/ESTV) according to the federal and cantonal rates established by law. A cross-border worker living in Cambiasca and working in Ticino follows the same scheme: the AVS pension amount will be calculated on the contributions paid in Switzerland, not on the Italian ones.

Net salary calculator

Operational details

Withholding tax: how NOT to end up in double taxation

A cross-border worker living in Cambiasca receives their pay slip from their Ticino-based employer. The Swiss withholding tax has already been applied to this pay slip according to cantonal and federal tables. This tax is not collected simultaneously in Italy. When the cross-border worker files their 730 tax return in Italy (by June of the following year), they report their foreign income in the CE section. The Italian Revenue Agency recognizes the tax credit (i.e., the fact that Switzerland has already deducted it), thus avoiding double taxation. If the Swiss tax is higher than the Italian tax, the cross-border worker receives a refund; if it is lower, they pay the difference.

Swiss tax rates vary at the federal and cantonal levels, but the cross-border worker does not choose the amount: it is applied by the Ticino-based employer according to the current AFC/ESTV tables. The result is that the net monthly income of a cross-border worker living in Cambiasca may be lower than that of a worker residing in Switzerland, with the same gross income, because the Ticino cantonal withholding is often higher than the national average.

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.

Were you a cross-border worker before July 17, 2023? Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). Did you become a cross-border worker after that date? The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax. The difference is measured, but significant:

• Old cross-border worker: 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.

This protection is gradually phased out by 2033, when even old cross-border workers will switch to the ordinary regime without exemption. Until then, the transitional regime protects those who were already commuting at the time of the 2024 Agreement. It is a political choice not to penalize those who had already organized their lives around that tax system.

Guide to tax refunds

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

First step: request the Permesso G

To work in Ticino and live in Cambiasca, you need a valid Permesso G. The permit is issued by the cantonal migration office of Ticino (SEM - State Secretariat for Migration at the Swiss level; at the cantonal level, it is the Immigration Office of the Canton of Ticino). The request usually goes through the employer: they notify the Swiss authorities of the hiring, who then initiate the procedure. You, as an Italian employee residing in Italy, provide the required documents (identity, employment contract, certificate of no criminal record). For EU/EFTA citizens, a G permit is valid for five years with an indefinite contract or one lasting more than a year; with a contract lasting more than three months but less than a year, it is valid for the contract period. For work of up to three months in a calendar year, no G permit is required; the online notification procedure applies. In Ticino, the SPOP fee schedule for EU/EFTA citizens lists CHF 75 for an adult permit issue or renewal, CHF 60 for a job change and CHF 40 for a minor; for procedures marked with an asterisk, photo or signature data collection may add CHF 15.

The Italian-Swiss Convention of March 9, 1976 recognizes the right of citizens to work across the border. Your right to work in Ticino is protected by this legal instrument. However, from January 1, 2024, the new regime of the Cross-Border Workers Agreement modifies the tax obligations (as described in the previous paragraphs), not the permit obligations. The Permesso G remains the main instrument for cross-border work.

Pay slip, 730 declaration and tax credit

Each month you will receive the pay slip with the withholding tax deducted. Keep all original pay slips (paper or digital). During the fiscal year, Switzerland (through the employer or the AFC/ESTV) will communicate to your Revenue Agency the amount of gross income and withheld tax. By June of the following year, you submit the 730 model online (through the tax agency, accountant, or CAF). In the CE section of the 730, you report the foreign income and tax paid in Switzerland. The Agency recognizes the Swiss tax credit and calculates the Italian tax due. The refund or balance is managed as for any ordinary 730 declaration.

Health insurance and LAMal choice

Living in Italy but working in Switzerland, you have the option to choose Swiss health insurance (LAMal, Health Insurance Law). You are not obliged: you can keep the Italian insurance (INPS). If you choose Swiss LAMal, you must subscribe to it with a Swiss health insurance fund. The deductibles for adults range from CHF 300 to CHF 2500 per year (the rest of the costs are covered by the fund until the deductible is reached, then the system covers 90% of the expenses). Choosing LAMal also means paying the premiums directly to the health insurance fund, not through the salary. According to the Health Insurance Law, those in category G (cross-border workers) can exercise this option.

LAMal health insurance

Online tools to calculate net income and refunds

Use the net salary calculator of Frontaliere Ticino to estimate the monthly withholding tax and the annual net income. Enter the Swiss gross income, the canton of work (Ticino), your category (cross-border worker G), and the fiscal year. The tool applies the federal and cantonal rates according to the 2024 regime and your cross-border worker status. For a more accurate estimate of Italian tax refunds, consult the dedicated guide to refunds on this site: it explains how to read the 730 model and predict any tax refunds or balances due.