What is the difference between old and new frontier workers in the new 2024 agreement?

From 17 July 2023, the new agreement distinguishes two categories. Old frontier workers (already frontier workers before that date) are entitled to an exemption of €7,500 per year on Italian income, with a transitional regime until 2033. New frontier workers (from that date onwards) benefit from a deductible of more than €10,000 per year. Both significantly reduce the Italian tax base and therefore the IRPEF due.

In which country do I pay the tax at source?

The tax at source is exclusively withheld by the Swiss employer according to the rates of the Canton of Ticino. Italy does not apply a withholding tax parallel to work. However, the frontier worker must declare income in Italy and can request a tax credit (EC framework of model 730) equal to the Swiss taxes already paid, avoiding full double taxation.

How does the LAMal work for a category G border crossing?

Swiss health insurance (LAMal) is mandatory for border workers in category G. They have the right to choose between insuring in Switzerland or remaining in the Italian system if already covered by a spouse or family member. Swiss adult deductibles range from CHF 300 to CHF 2,500 per year. The cost is deductible from the Swiss tax base, reducing the tax at source.

What is the tax rebate and when do I receive it?

The refund is the reimbursement that the Revenue Agency grants to frontier workers when the Swiss tax withheld is lower than the Italian personal income tax due. It is calculated on the 730 return by May 31 and usually paid between April and June of the following year. The amount varies from a few hundred to thousands of euros per year, depending on the total income and family situation.

How does pension coordination between Swiss AVS/LPP and Italian INPS work?

The contributions paid in Switzerland (AVS and LPP) are fully recognised by Italy for the calculation of the future pension. The frontier worker accumulates a unique social security position that combines Swiss and Italian payments, coordinated by the Italian-Swiss Convention of 9 March 1976, without loss of contributory years.

Living in Dizzasco and working in Ticino as a border worker

Di Redazione Frontaliere Ticino · Published on 4 September 2026 · Updated on 25 September 2026

Early morning Lake Lugano view with Alps in background and a commuter car on the road heading to the border checkpoint.

Practical guide for border workers: G permit, taxes, AVS/LPP, LAMal, refreshments, travel times and cost of living between Dizzasco and Ticino.

Context

In brief

New Cross-Border Agreement effective from 1 January 2024
Exemption €7,500 (old) and €10,000 (new cross-border workers)
Withholding tax deducted only in Switzerland
Permit G to work daily in the Canton of Ticino

Key facts

What: Living in Lombardy and working as a cross-border commuter in Swiss Ticino
When: New agreement from 1 January 2024
Where: Dizzasco, Chiasso and Brogeda border crossings towards Ticino
Who: Cross-border workers category G with employment in Switzerland
Exemption: €7,500 (old), €10,000 (new from 17 July 2023)
Convention: 9 March 1976 (double taxation)

The New Cross-Border Agreement and status from 2024

From 1 January 2024, the New Cross-Border Agreement between Switzerland and Italy has come into effect, modifying the tax and social security rules for those living in Dizzasco and Italy and working in the Canton of Ticino. The agreement was signed on 23 December 2020 and ratified by Italy through Law 83 of 13 June 2023. For a cross-border worker residing in this area of Lombardy, this is a milestone that simplifies the tax regime and offers new advantages.

The withholding tax on employment income is deducted exclusively in Switzerland and managed by the AFC (Federal Tax Administration) based on the rates of the Canton of Ticino. Italy does not apply a parallel deduction. This means that the cross-border worker does not suffer immediate double taxation on their pay slip. The Italian-Swiss Convention of 9 March 1976 regulates the tax credit: by declaring the income in Italy through the CE section of the income tax return (model 730), the Revenue Agency recognizes the taxes already paid in Switzerland, avoiding overlaps.

The distinction between old and new cross-border workers is crucial and direct. Those who were already cross-border workers before 17 July 2023 benefit from an exemption of €7,500 annually on the Italian taxable income, with a transitional regime extended until 2033. Those who acquired the status of cross-border worker after that date are entitled to a more generous exemption of €10,000 annually. This exemption significantly lowers the Italian taxable base and reduces the IRPEF due (23% up to €28,000, 33% from €28,001 to €50,000, 43% over €50,000).

Permit G and the Dizzasco-Ticino connection

To work daily in the Canton of Ticino, the cross-border worker residing in Dizzasco needs the permit G (cross-border worker permit), issued by the Swiss authorities (SEM — State Secretariat for Migration) in coordination with the Ticino cantonal authorities. The proximity of Dizzasco to the Chiasso and Brogeda border crossings makes daily commuting practical. The permit allows crossing the border every day to go to work. It is the Swiss employer who requests the permit and demonstrates that the position cannot be filled by Swiss residents.

Operational details

Taxes, Double Taxation, and Tax Credit

Living in Dizzasco means navigating two parallel tax systems: the Swiss system of Switzerland (where you work) and the Italian system (where you reside). The logic of the Convention of March 9, 1976 is to prevent the same income from being taxed twice in full.

The Swiss withholding tax is deducted by the employer based on the federal, cantonal, and municipal rates of the Canton of Ticino, and typically ranges from 15% to 25% of the gross income. However, the Italian cross-border worker must still file an income tax return in Italy, where the income is taxed according to the IRPEF: 23% up to €28,000, 33% from €28,001 to €50,000, 43% over €50,000. Without protection, the income would be subject to full double taxation. The solution is the tax credit, recognized on the CE section of the 730 declaration: the amount of Swiss tax already paid is deducted from the Italian IRPEF. Since the Swiss rates are generally lower, the cross-border worker often receives a positive amount (the tax refund) from the Revenue Agency, typically paid between April and June.

AVS, LPP, and Italian Pension System: The Double Pension System

In Switzerland, the cross-border worker is required to contribute to three pillars of pension. The AVS (Old-Age and Survivors' Insurance) and AI (Disability Insurance) together with the IPG (loss of earnings allowance) absorb 5.3% of the gross salary as an employee contribution (the employer contributes the same amount). The Unemployment Insurance (AD) and Accident Insurance (AC) add 1.1% (up to CHF 148,200 of salary), the LAINF (occupational accident insurance) 0.7–1.5%, and the LPP (occupational pension scheme, second pillar) varies from 7% to 18% depending on age (from 25 years onwards) and the company.

In parallel, the cross-border worker remains registered with the INPS for the mandatory Italian pension system. The new agreement of 2024 clarifies that the contributions paid in Switzerland (AVS and LPP) are fully recognized by Italy for the calculation of future pensions. There are no losses: the cross-border worker accumulates a pension position that combines Swiss and Italian contributions, coordinated by the International Convention.

LAMal, Costs, and Insurance Choices

The Swiss health insurance (LAMal) is mandatory for cross-border workers in category G. Unlike Swiss residents, the cross-border worker has the option to choose: to be insured in Switzerland or to remain in the Italian healthcare system if already covered by a spouse or another family member. The Swiss adult deductibles range from CHF 300 to CHF 2,500 annually depending on the policy. The cost of LAMal is fully deductible from the Swiss taxable base, effectively reducing the withholding tax. Choosing Swiss LAMal with a low deductible (CHF 300) results in a higher monthly premium but greater protection.

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

Operating procedure: from G permit to net calculation

Step 1: G permit and Swiss registration

The first concrete step is for the Swiss employer to request the G permit from the SEM (State Secretariat for Migration). The procedure typically takes 1–2 months. Once approved, the cross-border worker receives the physical permit valid for one year, renewable. At the same time, the cross-border worker must register with the municipality of Dizzasco as a cross-border worker and obtain the Swiss tax identification number (SIN), necessary for the Italian declaration.

Step 2: Income tax declaration and CE form

Every year by May 31, the cross-border worker must submit the Italian income tax declaration (model 730 or Redditi Persone Fisiche). The Swiss employer provides the tax certificate (CU) by February, with income data and taxes already withheld. The cross-border worker must complete the CE form of the declaration, reporting the Swiss income declared and the Swiss tax paid. The Revenue Agency automatically recognizes the tax credit, calculating any positive refunds.

Step 3: Net calculation and simulation

The monthly net depends on the gross salary, the Ticino withholding tax rate, social security contributions, health insurance, and family status. An estimate for a gross salary of CHF 4,500 might involve a total deduction (taxes + AVS/AI/IPG/AD/AC/LPP/LAINF/LAMal contributions) around 25–30%, leaving a net of about CHF 3,100–3,375. This figure varies considerably based on the municipality of residence, the canton, the number of children, and the choice of LAMal.

Using the dedicated online calculator for cross-border workers allows you to simulate the net salary by entering personal data (marital status, children, gross income, LAMal choice). The tool applies the updated federal and Ticino cantonal rates and provides a realistic estimate.

Step 4: Tax refund and deadlines

The refund is the reimbursement that the Revenue Agency recognizes when the Swiss tax is lower than the Italian IRPEF due. It is calculated on the 730 declaration and paid between April and June to the taxpayer's account. Typical amounts range from a few hundred to a few thousand euros annually. Always keep Swiss documents (tax certificates, statements from SIA or the employer) to support the declared tax credit.

Step 5: Assistance and tools

Consulting a tax advisor or accountant specializing in cross-border workers is recommended to optimize your overall position. Platforms like the cross-border calculator and resources dedicated to refunds help manage deadlines and understand the orders of magnitude of your annual net and expected refunds.

Frequently Asked Questions

What is the difference between old and new frontier workers in the new 2024 agreement?: From 17 July 2023, the new agreement distinguishes two categories. Old frontier workers (already frontier workers before that date) are entitled to an exemption of €7,500 per year on Italian income, with a transitional regime until 2033. New frontier workers (from that date onwards) benefit from a deductible of more than €10,000 per year. Both significantly reduce the Italian tax base and therefore the IRPEF due.
In which country do I pay the tax at source?: The tax at source is exclusively withheld by the Swiss employer according to the rates of the Canton of Ticino. Italy does not apply a withholding tax parallel to work. However, the frontier worker must declare income in Italy and can request a tax credit (EC framework of model 730) equal to the Swiss taxes already paid, avoiding full double taxation.
How does the LAMal work for a category G border crossing?: Swiss health insurance (LAMal) is mandatory for border workers in category G. They have the right to choose between insuring in Switzerland or remaining in the Italian system if already covered by a spouse or family member. Swiss adult deductibles range from CHF 300 to CHF 2,500 per year. The cost is deductible from the Swiss tax base, reducing the tax at source.
What is the tax rebate and when do I receive it?: The refund is the reimbursement that the Revenue Agency grants to frontier workers when the Swiss tax withheld is lower than the Italian personal income tax due. It is calculated on the 730 return by May 31 and usually paid between April and June of the following year. The amount varies from a few hundred to thousands of euros per year, depending on the total income and family situation.
How does pension coordination between Swiss AVS/LPP and Italian INPS work?: The contributions paid in Switzerland (AVS and LPP) are fully recognised by Italy for the calculation of the future pension. The frontier worker accumulates a unique social security position that combines Swiss and Italian payments, coordinated by the Italian-Swiss Convention of 9 March 1976, without loss of contributory years.