How much can I save by living in Castelmarte and working in Ticino?

Affordability depends on salary and taxation. A frontier worker with an income of more than €10,000 benefits from the deductible for new frontier workers and pays tax at source only in Switzerland. The Italian tax credit (EC framework of 730) further reduces the overall taxation. The difference between the cost of living in Castelmarte and the salary in CHF can generate significant savings, especially for young professionals.

What is the first step to becoming a frontier with the New Deal?

The first step is to find an employer in Ticino and sign a contract. Once signed, the company submits the G Permit application to the SEM (Secretariat of State for Migration). In the meantime, register with the cantonal Federal Tax Administration (AFC/ESTV). Finally, notify the Municipality of Castelmarte of your new status and prepare the 730 Italian declaration for the following year.

How do tax refunds work and when do I get them?

Refunds are the difference between the Italian IRPEF due (calculated on your income) and the source tax paid in Switzerland. The request is initiated by filling in form 730, CE framework, at a CAF or accountant. The Revenue Agency processes the declaration and credits the refund (if positive) by May-June of the following year to your Italian bank account.

Does the €10,000 deductible apply to me?

The €10,000 deductible applies to new frontier workers, i.e. those who have acquired frontier status after 17 July 2023. Border crossers who were already border crossers before that date fall under the transitional regime (2024–2033) with an excess of €7,500. Check your relationship start date with the SEM to determine which regime applies to you.

Do I need to join LAMal Switzerland or do I stay in the Italian system?

G Permit frontier workers have the right of option for LAMal (Swiss health insurance). If you choose to stay in the Italian National Health Service, it is not mandatory to join LAMal, but supplementary Swiss coverage can offer advantages (no ticket, wider coverage). Evaluate with an insurance intermediary what the CHF premiums are and compare them with your Italian situation.

Castelmarte Frontier: living and working in Ticino (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 20 August 2026

Aerial view of Castelmarte village with Lake Como background, residential houses on green hillside, Swiss-Italian border region landscape.

New Frontier Agreement, taxation, deductible €10,000, G Permit and tax refunds: complete guide for those residing in Castelmarte and working in the Canton of Ticino.

Context

Brief Summary

New Frontier Agreement in effect from January 1, 2024
Annual exemption of €10,000 for new frontier workers
Permit G mandatory: authorization from SEM
Tax refunds via model 730, quadro CE form

Key Facts

What: New Frontier Agreement between Italy and Switzerland
When: In effect from January 1, 2024 (signed on December 23, 2020)
Where: Ticino-Italy border, province of Como
Who: Frontier workers residing in Italy
Exemption: €10,000 annual (new frontier workers from July 17, 2023)
Tax treatment: Income tax only in Switzerland
Refund: Credit for quadro CE (model 730 Italian form)

Castelmarte is an Italian town in the province of Como, strategically located for those working in the Canton Ticino. Just a few kilometers from the Brogeda and Chiasso border crossings, the town represents a convenient residential base for frontier workers who travel daily to Ticino companies, hospitals, and offices. The New Frontier Agreement, which came into effect on January 1, 2024, has transformed the tax regime for those who choose to live in Italy and work in Switzerland. Signed on December 23, 2020, and ratified by Italy with Law 83 of June 13, 2023, the agreement provides a more favorable tax regime compared to the past. The withholding tax only occurs in Switzerland, while in Italy, a tax credit is available through the model 730, quadro CE form.

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Operational details

How the new tax regime works

For new frontier workers (those who acquired the status after 17 July 2023), the annual deductible is €10,000. This means that income from employment up to this threshold is not subject to taxation in Switzerland. Above €10,000, the source tax is calculated and withheld directly from the Swiss paycheck. In Italy, the border worker declares income in form 730 and is entitled to the tax credit (EC framework), which compensates for potential double taxation deriving from the Italian-Swiss Convention of 9 December 1976.

Payroll and contributions

A border worker working in Ticino as an employee sees on his paycheck:

AVS/AI/IPG withholding: 5.3% of gross salary
AD/AC contribution: 1.1% (up to CHF 148,200 annual salary)
LAINF contribution: 0.7-1.5% (depends on occupational risk)
LPP contribution (second pillar): 7–18% depending on age (from 25 years onwards)

The employer, for its part, pays the employer's contributions: AVS/AI/IPG 5.3%, AD/AC 1.1%, LAINF an additional percentage, and LPP. The combination of employee and employer contributions forms the basis of Swiss social protection. In Italy, the border worker who declares his income must pay the IRPEF according to the progressive rates: 23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000. However, thanks to the tax credit (EC framework of 730), the tax actually due

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

The Checklist for the Frontalier: Concrete Steps

Moving to Castelmarte and starting work in Ticino requires a sequence of obligations. Most can be completed in 2-4 weeks, provided that the Swiss and Italian administrative times are respected.

Step 1: Obtain the G Permit

The G Permit is not requested directly by the frontalier, but by the Swiss employer through the SEM (State Secretariat for Migration). The procedure begins when the company transmits the application, attaching the employment contract, personal data and Italian domicile declaration. The SEM issues a provisional authorization (valid for about 6-8 weeks), during which the frontalier can already enter and work in Switzerland. The definitive authorization arrives within 90 days. The G Permit is not personalized: any eligible frontalier can present themselves at the Chiasso or Brogeda border crossings without additional checks.

Step 2: Fiscal Registration in Switzerland

Once the employer communicates to the SEM the start of the employment relationship, the frontalier must register with the Federal Administration of Contributions (AFC/ESTV) cantonal Ticinese. This registration is essential to receive a Swiss contributor number (UIPersonnes), obtain the AVS/AI payment code and document the basis for the calculation of the withholding tax. The registration can be made online through the cantonal portal or at the tax offices in Lugano, Bellinzona or Mendrisio (depending on the place of work).

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Frequently Asked Questions

How much can I save by living in Castelmarte and working in Ticino?: Affordability depends on salary and taxation. A frontier worker with an income of more than €10,000 benefits from the deductible for new frontier workers and pays tax at source only in Switzerland. The Italian tax credit (EC framework of 730) further reduces the overall taxation. The difference between the cost of living in Castelmarte and the salary in CHF can generate significant savings, especially for young professionals.
What is the first step to becoming a frontier with the New Deal?: The first step is to find an employer in Ticino and sign a contract. Once signed, the company submits the G Permit application to the SEM (Secretariat of State for Migration). In the meantime, register with the cantonal Federal Tax Administration (AFC/ESTV). Finally, notify the Municipality of Castelmarte of your new status and prepare the 730 Italian declaration for the following year.
How do tax refunds work and when do I get them?: Refunds are the difference between the Italian IRPEF due (calculated on your income) and the source tax paid in Switzerland. The request is initiated by filling in form 730, CE framework, at a CAF or accountant. The Revenue Agency processes the declaration and credits the refund (if positive) by May-June of the following year to your Italian bank account.
Does the €10,000 deductible apply to me?: The €10,000 deductible applies to new frontier workers, i.e. those who have acquired frontier status after 17 July 2023. Border crossers who were already border crossers before that date fall under the transitional regime (2024–2033) with an excess of €7,500. Check your relationship start date with the SEM to determine which regime applies to you.
Do I need to join LAMal Switzerland or do I stay in the Italian system?: G Permit frontier workers have the right of option for LAMal (Swiss health insurance). If you choose to stay in the Italian National Health Service, it is not mandatory to join LAMal, but supplementary Swiss coverage can offer advantages (no ticket, wider coverage). Evaluate with an insurance intermediary what the CHF premiums are and compare them with your Italian situation.