Cassano Valcuvia–Ticino: 2024 border guide (cross-border guide)

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024
• Withholding tax withheld only in Switzerland
• Old frontier workers: exemption €7,500, regime 2024–2033
• New frontier workers: deductible €10,000

Key facts

• What: New Italy-Switzerland Border Agreement
• When: Signed 23/12/2020, effective from 1 January 2024
• Where: Canton of Ticino and Italian border regions
• Who: Italian ratification with Law 83 of 13 June 2023
• Old frontier workers: Exemption €7,500, transitional regime 2024–2033
• New frontier workers: Deductible €10,000
• Convention: Double taxation Italy-Switzerland signed on December 9, 1976
• CH contributions: AVS/AI/IPG 5.3% employee, AD/AC 1.1%

Living in Cassano Valcuvia and working in Ticino as a border worker is a choice of cross-border commuting that interests those who reside in the Varese province and aim for jobs in the Canton of Ticino. The regulatory framework of reference has changed radically with the New Frontier Agreement, signed on 23 December 2020 and in force from 1 January 2024 after the Italian ratification with Law 83 of 13 June 2023.

The basic principle: taxation only in Switzerland

For frontier workers with a G permit, the tax at source is withheld exclusively in Switzerland, on the income of employees. Italy avoids double taxation through the tax credit mechanism, which the taxpayer indicates in the EC framework of model 730. Switzerland is not

Operational details

Analysis: what actually changes for those leaving from Cassano Valcuvia

Cassano Valcuvia lies in the province of Varese, in an inland position relative to the main Ticino border crossings. Anyone targeting Ticino must consider travel times and routing choices even before comparing salaries.

Distances and border crossings

From the floor of the Valcuvia valley, the routes towards Canton Ticino essentially converge on the A8 motorway towards the A26 and then on to the Brogeda border crossing, or on the road network leading to Ponte Tresa via Lake Ceresio. The first itinerary is the one used by commuters working in the Lugano and Mendrisio areas; the second serves those employed in the Locarno area or the western strip of the canton. Before moving, it is worth simulating the journey during rush hour, also by consulting the traffic history at the border crossings with border crossing traffic and the map of available crossings at border crossings map.

Tax regime comparison: before and after 2024

For a long-standing cross-border worker, the 2024 change does not bring double taxation but starts the gradual erosion of the exemption: year after year the exempt threshold is reduced, until it reaches zero in 2033. For a newly hired worker after 17 July 2023, the €10,000 allowance is instead the immediate shield, and anything exceeding that amount falls into Italian IRPEF under the three progressive rates already mentioned.

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Key points

Operational procedure: from decision to first working day

Step 1 — Status check

Confirm whether you are an "old cross-border worker" (employed as a cross-border worker before 17 July 2023) or a "new cross-border worker". Your status determines whether the €7,500 exemption with the 2024–2033 transitional regime or the €10,000 allowance applies. Keep all documentation proving the start date of your cross-border activity.

Step 2 — G permit and registration

The G permit is the cross-border worker's permit, issued by the cantonal authorities after the Swiss employer has filed the application. Check the required documents at G and B permits and compare the two types at G permit vs B permit.

Step 3 — Registration in Italy

Registration with AIRE if you transfer your residence, registration with the National Health Service (or maintenance of the LAMal opt-out right) and opening of a current account suitable for receiving your salary in CHF or EUR, paying attention to the CHF/EUR exchange rate.

Step 4 — Payslip and Swiss taxes

The source tax withholding is operated by the employer according to the rates set by federal and cantonal law and administered by the AFC/ESTV at federal level and by the cantonal tax administrations. The payslip shows AVS/AI/IPG 5.3%, AD/AC 1.1% (ceiling CHF 148,200), LAINF between 0.7% and 1.5%, and LPP between 7% and 18% by age bracket starting from age 25. For a realistic simulation of your net salary, use the payslip simulator and the tax calculator.

Step 5 — Income tax return in Italy

In the Italian tax return (Form 730), cross-border work income must be declared in section CE, claiming the tax credit for taxes paid in Switzerland and thus avoiding double taxation. The tax return tool helps you set up the procedure correctly.

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