What are the key dates of the new Cross-Border Workers Agreement?

The new Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024. The Italian ratification took place with Law 83 of 13 June 2023. In addition, the watershed date of 17 July 2023 distinguishes old frontier workers from new frontier workers for the application of tax regimes and related deductibles.

How does the exemption work for old and new cross-border workers?

Old border workers, i.e. those who were already border workers before 17 July 2023, benefit from an exemption of 7,500 euros and fall under the transitional regime 2024-2033. New frontier workers, on the other hand, are entitled to a deductible of 10,000 euros. The income tax at source is only withheld in Switzerland, while Italy avoids double taxation through the tax credit in the EC framework of model 730.

What are the main contribution items on a payslip in Switzerland?

The Swiss contribution items indicated include AVS, AI and IPG with a rate of 5.3% to be borne by the employee. For AD/AC unemployment insurance the rate is 1.1% with a ceiling of CHF 148,200. The LAINF moves in a range between 0.7% and 1.5%, while the LPP varies from 7% to 18% depending on the age group from the 25th year onwards.

Living in Brunate and working in Ticino as a cross-border commuter

Di Marco Ferrari · Published on 29 October 2026

Illustrative image relevant to the article topic

Tax and social security guide for those who live in Brunate and work in Ticino, covering the new Cross-Border Agreement, withholding tax, exemptions, and payslip items.

Context

TL;DR

Cross-Border Agreement in force from January 1st, 2024
Old cross-border workers: exemption of €7'500 until 2033
New cross-border workers: tax-free allowance of €10'000
Withholding tax deducted only in Switzerland

Key facts

Agreement signing → December 23, 2020
Entry into force → January 1, 2024
Italian ratification → Law 83 of June 13, 2023
Existing cross-border workers → €7'500 exemption, transitional period 2024–2033
New cross-border workers → €10'000 tax-free allowance
Convention → signed on March 9, 1976
Double taxation → tax credit in section CE of the 730 form

The new Cross-Border Workers Agreement was signed on December 23, 2020 and entered into force on January 1, 2024. For those considering living in Brunate and working in Ticino as a cross-border worker, these two dates are the starting point for understanding the applicable tax treatment. The Italian ratification is Law 83 of June 13, 2023.

The distinction that changes the tax framework

The date that separates the two regimes is July 17, 2023. Existing cross-border workers, already in that status before that date, have an exemption of €7'500 and fall under the 2024–2033 transitional regime. New cross-border workers, on the other hand, have a €10'000 tax-free allowance. The stated criterion is the worker's status in relation to July 17, 2023, not merely the place of residence.

The rule concerning the payslip is equally clear: for cross-border workers, withholding tax on employment income is withheld only in Switzerland. Italy avoids double taxation through the tax credit reported in section CE of the 730 form. Therefore, when assessing the move to Brunate, the comparison should not be constructed by automatically adding a Swiss tax and an Italian tax on the same income. The source links the Italian mechanism to the tax credit, not to a second withholding.

The bilateral framework also includes the Convention for the avoidance of double taxation between Italy and Switzerland, signed on March 9, 1976. Switzerland is not a member of the European Union or the European Economic Area: this element too forms part of the framework within which the G permit, taxation and cross-border employment should be understood. The point is not to assign a special rule to Brunate, but to apply the cross-border-worker regime correctly to the individual situation.

Read in sequence, the chronology distinguishes three stages: signing on December 23, 2020, Italian ratification through Law 83 of June 13, 2023, and application from January 1, 2024. The date of July 17, 2023, on the other hand, is used to identify existing and new cross-border workers.

Operational details

From the payslip to coverage

The net income of a cross-border worker does not correspond to withholding tax. The rules set out here list separate Swiss contributions, and this separation is useful for those comparing work in Ticino with the choice of where to live in Brunate. The percentages provided should be read as separate items, without turning them into a personalized calculation of net income.

The Swiss items listed

Table 1: Item
Item	Documented data
AVS/AI/IPG	5,3% paid by the employee
AD/AC	1,1%; cap CHF 148'200
LAINF	0,7–1,5%
LPP	7–18% by age group, starting at age 25

AVS, AI and IPG are presented together with a combined rate of 5,3% for the employee. For AD/AC, the source indicates 1,1% and the limit of CHF 148'200. LAINF is reported with a range from 0,7% to 1,5%, while LPP varies from 7% to 18% based on age group, starting at age 25. These items belong to the contribution component, whereas withholding tax belongs to the tax component.

Health insurance also follows a separate logic. LAMal is health insurance, not a health tax; cross-border workers with a G permit have the right to choose. For adults, the indicated deductibles range from CHF 300 to CHF 2'500. The right to choose is therefore an element to consider for a cross-border worker with a G permit, separate from contribution rates and taxation.

To keep income, social security and health coverage separate, you can consult page LAMal health insurance. The link concerns the health-related item; it does not replace the payslip data or modify the rates listed. When comparing living in Brunate and working in Ticino, the usable information is therefore the structure of the items: AVS/AI/IPG, AD/AC, LAINF and LPP on the one hand; withholding tax and LAMal on the other.

Key points

Figures for the Canton of Ticino and responsibilities

In the first quarter of 2026, USTAT counted 78'561 cross-border commuters in Ticino, a slight decrease, equal to approximately 32% of employed persons. This is the territorial figure reported for the Canton of Ticino. For individual taxation, the distinction between those who were already cross-border commuters before July 17, 2023, and those who fall into the category of new cross-border commuters remains decisive.

2026 is not the date of the agreement

The USTAT figure for 2026 and the date of the new Cross-Border Commuters Agreement should not be conflated. The agreement entered into force on January 1, 2024, while the first quarter of 2026 is the statistical period. This distinction prevents attributing to 2026 an agreement that the source places in 2020 for its signing and in 2024 for its entry into force.

Institutional responsibility must also be interpreted precisely. Tax rates, including withholding tax and federal and cantonal rates, are established by federal and cantonal laws. At the federal level, the administration identified is AFC/ESTV, while the cantonal tax administrations are also involved. BFS collects statistical data: it does not set the rates. For its part, USTAT is the body cited for counting cross-border commuters in the first quarter of 2026.

For the Italian side, the source reports the 2026 IRPEF rates as 23% up to €28'000, 33% between €28'001 and €50'000, and 43% above €50'000, under Law 199/2025, Art. 1, para. 3. For 2024–2025 income, it instead indicates 23%, 35% and 43%. These figures remain distinct references within the Italian system and should not automatically be added to the Swiss withholding: for the cross-border commuter, employment income is subject to withholding tax only in Switzerland, and Italy uses the tax credit in section CE of form 730.

As for the links, the editorial references mention Brogeda, Gaggiolo, A2/A9, the roads in Ticino and those in the provinces of Varese, Como and VCO, as well as TILO/FFS. The economic comparison between residence and work can be developed by separating the documented items from the rest; the relevant operational reference is cost of living in Ticino vs Italy.

Frequently Asked Questions

What are the key dates of the new Cross-Border Workers Agreement?: The new Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024. The Italian ratification took place with Law 83 of 13 June 2023. In addition, the watershed date of 17 July 2023 distinguishes old frontier workers from new frontier workers for the application of tax regimes and related deductibles.
How does the exemption work for old and new cross-border workers?: Old border workers, i.e. those who were already border workers before 17 July 2023, benefit from an exemption of 7,500 euros and fall under the transitional regime 2024-2033. New frontier workers, on the other hand, are entitled to a deductible of 10,000 euros. The income tax at source is only withheld in Switzerland, while Italy avoids double taxation through the tax credit in the EC framework of model 730.
What are the main contribution items on a payslip in Switzerland?: The Swiss contribution items indicated include AVS, AI and IPG with a rate of 5.3% to be borne by the employee. For AD/AC unemployment insurance the rate is 1.1% with a ceiling of CHF 148,200. The LAINF moves in a range between 0.7% and 1.5%, while the LPP varies from 7% to 18% depending on the age group from the 25th year onwards.