When did the New Frontier Agreement come into force?

The New Italy-Switzerland Frontier Agreement was signed on 23 December 2020 and is in force from 1 January 2024. The Italian ratification took place with Law 83 of 13 June 2023. The Convention against Double Taxation between the two countries dates back to 9 March 1976.

What is the difference between old and new frontiersmen?

The old frontier workers, i.e. those who were already such before 17 July 2023, have an exemption of €7,500 and a transitional regime that expires in 2033. New frontier workers, hired after that date, benefit from a deductible of €10,000: any surplus is taxed in Italy with the IRPEF rates of 23%, 33% and 43%.

Is source tax payable in both countries?

No. For frontier workers with a G permit, the tax at source is only withheld in Switzerland. Italy avoids double taxation through the tax credit indicated in the EC framework of model 730. Switzerland is not a member of the European Union or the European Economic Area.

What contributions are withheld from the Swiss paycheck?

The paycheck of the border worker is charged to AVS/AI/IPG at 5.3% by the employee, AD/AC at 1.1% with an annual ceiling of CHF 148'200, LAINF between 0.7% and 1.5% and LPP contributions between 7% and 18% by age group, starting from the age of 25. Rates are set by federal and cantonal laws.

How does sanitation work for a border crossing with a G permit?

Border workers with a G permit have the right of option between LAMal Swiss health insurance and registration with the Italian health system through the CMI. Annual adult deductibles in LAMal are between CHF 300 and CHF 2,500. The federal tax administration (AFC/ESTV) does not fall under this scope, which is managed at the cantonal level.

Cassano Valcuvia–Ticino: 2024 border guide

Di Redazione Frontaliere Ticino · Published on 29 August 2026 · Updated on 25 September 2026

Hillside scenery between Cassano Valcuvia and the Canton Ticino border

Commuting, taxation and cost of living for those who evaluate Cassano Valcuvia as a base to work in Canton Ticino with the G permit.

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 March 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

Table 1: Item
Item	Old cross-border worker (pre 17/7/2023)	New cross-border worker
Exemption / allowance	€7,500	€10,000
Main taxation	Switzerland only	Switzerland only
Transitional regime	2024–2033	Not provided
IT tax credit	Form CE of 730	Form CE of 730
IRPEF rate on the excess	Not due	23% / 33% / 43%

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.

Pensions and healthcare: the forgotten chapter

AVS/AI/IPG and LPP contributions accrued in Switzerland can be carried over at retirement, but the decision to remain a cross-border worker throughout one's career affects the pension calculation. On the healthcare front, LAMal is the mandatory health insurance: cross-border workers with a G permit have the right to choose between Swiss LAMal and enrolment in the Italian system via CMI, and the annual deductibles for adults range between CHF 300 and CHF 2,500. Learn more about coverage with LAMal health insurance.

Cost of living: the real balancing factor

The cost-of-living differential between Canton Ticino and the Varese area remains the factor that makes commuting attractive for those who manage to secure a job in Switzerland. For a detailed comparison, use the cost of living Ticino vs Italy tool: rent, groceries, car insurance and motorway vignettes weigh differently depending on the chosen area of residence.

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.

Step 6 — Pension and long term

Check your AVS position with the Swiss compensation fund and your LPP position with the employer's pension institution. For retirement and supplementary provision scenarios, you can simulate pillar 3a with pillar 3a and your future pension with AVS/LPP.

Timelines and deadlines

The New Agreement has been in force since 1 January 2024 and the transitional regime for old cross-border workers runs year by year until 2033. The Italian income tax return follows the ordinary 730 deadlines. For health coverage, any switch from LAMal to the Italian system or vice versa must be managed at the start of the employment relationship.

The choice of living in Cassano Valcuvia and working in Ticino as a cross-border worker must be built on three pillars: realistic commuting times, clear tax status, and pension under control.

Calculate your net salary now with the cross-border salary calculator and compare the real costs of living between Italy and Ticino with cost of living.

Frequently Asked Questions

When did the New Frontier Agreement come into force?: The New Italy-Switzerland Frontier Agreement was signed on 23 December 2020 and is in force from 1 January 2024. The Italian ratification took place with Law 83 of 13 June 2023. The Convention against Double Taxation between the two countries dates back to 9 March 1976.
What is the difference between old and new frontiersmen?: The old frontier workers, i.e. those who were already such before 17 July 2023, have an exemption of €7,500 and a transitional regime that expires in 2033. New frontier workers, hired after that date, benefit from a deductible of €10,000: any surplus is taxed in Italy with the IRPEF rates of 23%, 33% and 43%.
Is source tax payable in both countries?: No. For frontier workers with a G permit, the tax at source is only withheld in Switzerland. Italy avoids double taxation through the tax credit indicated in the EC framework of model 730. Switzerland is not a member of the European Union or the European Economic Area.
What contributions are withheld from the Swiss paycheck?: The paycheck of the border worker is charged to AVS/AI/IPG at 5.3% by the employee, AD/AC at 1.1% with an annual ceiling of CHF 148'200, LAINF between 0.7% and 1.5% and LPP contributions between 7% and 18% by age group, starting from the age of 25. Rates are set by federal and cantonal laws.
How does sanitation work for a border crossing with a G permit?: Border workers with a G permit have the right of option between LAMal Swiss health insurance and registration with the Italian health system through the CMI. Annual adult deductibles in LAMal are between CHF 300 and CHF 2,500. The federal tax administration (AFC/ESTV) does not fall under this scope, which is managed at the cantonal level.