What is the difference between an 'old' and a 'new' border crossing from 2024?

The New Frontier Agreement of 2024 introduces different deductibles depending on when you started working in Switzerland. Those who were already border crossers before 17 July 2023 ('old') are entitled to an exemption of €7,500 on the Italian tax base. Those who started later ('new') have a deductible of €10,000. The difference reduces the Italian personal income tax by about €1,750 per year for new frontier workers. The exemption is valid from 2024 to 2033 for old border crossers.

Where is source tax withheld when I work in Ticino?

Income tax at source is withheld ONLY in Switzerland, not in Italy. This is a fundamental rule of the Italy-Switzerland Convention of 9 December 1976, confirmed by the New 2024 Agreement. Italy avoids double taxation by recognizing a tax credit: in the annual return (730 or Unico), you declare the taxes paid in Switzerland and get a refund or a deduction from your Italian IRPEF. The system is governed by the EC framework of the declaration.

How much is being withheld for AVS and LPP from my paycheck?

As a border worker working in Ticino, you automatically pay: AVS/AI/IPG at 5.3% (withheld from salary), AD/AC at 1.1% up to CHF 148'200 of annual income, LAINF between 0.7% and 1.5%, and LPP between 7% and 18% depending on age (from 25 years onwards). These are mandatory Swiss contributions that reduce your taxable income in both Switzerland and Italy. The exact amount of LPP depends on the company pension fund and the age at the time of enrollment.

Can I choose to be insured with a Swiss sickness fund?

Yes, border workers with G Permit have the 'right of option': you can insure yourself with a Swiss sickness fund (LAMal) instead of staying with Italian insurance. If you choose LAMal, adult deductibles range from CHF 300 to CHF 2,500 depending on the plan you choose. This choice is often cheaper for those who earn in CHF because the contribution is withheld directly in the Swiss paycheck.

When do I need to file a tax return in Italy?

The ordinary deadline for Form 730 is May 31 of each year. If you prefer the Unico model, the deadline is November 30. In the declaration you must indicate the gross income from employment in CHF, converting it to EUR at the official rate of the Revenue Agency, apply the deductible (€7,500 or €10,000), and declare the tax credit in the EC framework to avoid double taxation. Refunds usually take 2-4 months from processing.

Caronno Varesino-Ticino: the 2024 tax regime (cross-border guide)

Di Marco Ferrari · Published on 21 August 2026

Residential street in Caronno Varesino, Varese province, with the Alps visible

What to know about tax at source, AVS and LAMal when you live in Caronno Varesino and work in Ticino. The rules from the 2024 New Deal.

Context

In a nutshell

New Border Agreement in force from 1 January 2024 changes the taxation for border workers
Withholding tax withheld ONLY in Switzerland; Italy applies tax credit to avoid double taxation
Deductible €7,500 (frontier workers prior to 17/7/2023) or €10,000 (new frontier workers)

Key facts

What: New Border Agreement between Italy and Switzerland
When: Signed December 23, 2020, effective January 1, 2024
Where: Italy-Switzerland Frontier (majority Ticino Canton)
Who: Italian and Swiss governments; ratifies Italy with Law 83 of 13 June 2023
Basic agreement: 9 December 1976
Deductible: €7,500 (old) or €10,000 (new frontier workers)

The New Frontier Agreement, which entered into force on 1 January 2024 with Italian ratification through Law 83 of 13 June 2023, modifies the tax and social security regime for those who live in Caronno Varesino and work in Ticino. The legal basis dates back to the Italy-Switzerland Convention of 9 December 1976 on the prevention of double taxation; the new agreement updates it by introducing differentiated regimes for historical and neo-frontier frontiers.

Tax regimes and deductibles from 2024

For border guards already in place before 17 July 2023 (the so-called 'old border guards'), the new agreement guarantees an exemption of €7,500 on the Italian tax base. This amount is tax-free every year and benefits from a transitional regime from 2024 to 2033.

For the new

Operational details

Swiss social contributions that reduce your net

If you work in Ticino under contract as an employee, your mandatory Swiss contributions are:

AVS/AI/IPG (old age, disability, lost earnings): 5.3% of gross salary, automatically withheld
AD/AC (unemployment insurance, compensation fund): 1.1% up to annual income of CHF 148'200
LAINF (supplementary accident insurance): between 0.7% and 1.5%, depending on the sector
LPP (occupational pension, 'second pillar'): between 7% and 18% depending on the age group, from 25 years old

All of these amounts are deductible from your Swiss gross income and reduce your tax base in Italy as well. Your net income in CHF is less than gross for these contributions.

Italian personal income tax: progressive rates

In Italy, the IRPEF is applied with progressive rates on taxable income (after applying the deductible):

23% up to €28,000
35% from €28'001 to €50,000
43% over €50,000

However, thanks to the tax credit derived from taxes already paid in Switzerland, your Italian net tax will be significantly reduced. In many cases, the credit exceeds the IRPEF due, generating a refund from the Italian Revenue Agency.

Practical scenario: 'old' vs' new 'border crossings

Border registered before 17 July 2023 ('old'):

Gross income in Switzerland: CHF 80'000 (converted to about €85'000 at the official exchange rate)
Less:

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

1. G Permit: the fundamental document

First, you must obtain the G Permit (frontier worker authorization) at the State Secretariat for Migration (SEM) in the Canton of Ticino. This permit is mandatory for those living in Italy and working in Switzerland, and it legally enables you to commute across the border.

You will need a valid employment contract and Italian residence documentation to submit the request.

2. LAMal and right to option: health insurance

Frontier workers with a G Permit have the right to opt for Swiss health insurance (LAMal). This means you can:

Insure yourself with a Swiss health insurance fund (often cheaper for those earning in CHF, with adult deductibles ranging from CHF 300 to CHF 2,500)
Or remain covered by Italian health insurance

Most frontier workers choose Swiss LAMal because the contribution is deducted directly from their pay and the premium is competitive.

3. Income tax declaration: deadlines and procedures

Every year, you must declare your income from work in Switzerland to the Italian Revenue Agency. The deadlines are:

Model 730: by May 31st of each year (through CAF or online)
Model Unico: by November 30th

In the declaration, you must: 1. Indicate your gross income from dependent employment in CHF earned in Ticino 2. Convert it to EUR at the official exchange rate of the Revenue Agency (do not use the bank exchange rate) 3. Apply the exemption (€7,500 if 'old' frontier worker, €10,000 if 'new') 4. Declare the taxes paid at source in Switzerland in the CE box 5. Request the tax credit to avoid double taxation

…

Frequently Asked Questions

What is the difference between an 'old' and a 'new' border crossing from 2024?: The New Frontier Agreement of 2024 introduces different deductibles depending on when you started working in Switzerland. Those who were already border crossers before 17 July 2023 ('old') are entitled to an exemption of €7,500 on the Italian tax base. Those who started later ('new') have a deductible of €10,000. The difference reduces the Italian personal income tax by about €1,750 per year for new frontier workers. The exemption is valid from 2024 to 2033 for old border crossers.
Where is source tax withheld when I work in Ticino?: Income tax at source is withheld ONLY in Switzerland, not in Italy. This is a fundamental rule of the Italy-Switzerland Convention of 9 December 1976, confirmed by the New 2024 Agreement. Italy avoids double taxation by recognizing a tax credit: in the annual return (730 or Unico), you declare the taxes paid in Switzerland and get a refund or a deduction from your Italian IRPEF. The system is governed by the EC framework of the declaration.
How much is being withheld for AVS and LPP from my paycheck?: As a border worker working in Ticino, you automatically pay: AVS/AI/IPG at 5.3% (withheld from salary), AD/AC at 1.1% up to CHF 148'200 of annual income, LAINF between 0.7% and 1.5%, and LPP between 7% and 18% depending on age (from 25 years onwards). These are mandatory Swiss contributions that reduce your taxable income in both Switzerland and Italy. The exact amount of LPP depends on the company pension fund and the age at the time of enrollment.
Can I choose to be insured with a Swiss sickness fund?: Yes, border workers with G Permit have the 'right of option': you can insure yourself with a Swiss sickness fund (LAMal) instead of staying with Italian insurance. If you choose LAMal, adult deductibles range from CHF 300 to CHF 2,500 depending on the plan you choose. This choice is often cheaper for those who earn in CHF because the contribution is withheld directly in the Swiss paycheck.
When do I need to file a tax return in Italy?: The ordinary deadline for Form 730 is May 31 of each year. If you prefer the Unico model, the deadline is November 30. In the declaration you must indicate the gross income from employment in CHF, converting it to EUR at the official rate of the Revenue Agency, apply the deductible (€7,500 or €10,000), and declare the tax credit in the EC framework to avoid double taxation. Refunds usually take 2-4 months from processing.