What is the difference between old and new frontier workers after the New Frontier Agreement 2024?

The New Agreement, in force from 1 January 2024, distinguishes: (i) frontier workers already in status before 17 July 2023 benefit from a deductible of €7,500 per year and a transitional protection regime until 2033; (ii) new frontier workers (from that date onwards) obtain a deductible of €10,000. The agreement was signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023.

Where is income tax calculated and paid for a border worker living in Castello Cabiaglio?

Income tax is withheld exclusively in Switzerland by the employer (Swiss source tax). Italy, on the basis of the Italian-Swiss Convention of 9 December 1976, recognises this primary taxation and does not apply further tax on the income of employees of Switzerland. In the EC framework of the Italian declaration 730, the border worker declares the Swiss tax paid and obtains it as a tax credit, eliminating the risk of double withdrawal.

What are the social security contributions that a border worker pays in Ticino?

A border worker employed in Ticino pays: (i) AVS/AI/IPG 5.3% paid by the employee; (ii) LAINF (accidents) 0.7–1.5%; (iii) LPP (mandatory pension fund) 7–18% paid by the employer based on age (from 25 years); (iv) AD/AC (unemployment) 1.1% up to a maximum of CHF 148,200. These contributions are administered by the AFC (Federal Contributions Administration) and the competent cantonal administrations.

Can I choose to remain in the Italian National Health Service instead of subscribing to LAMal?

Yes. The New Frontier Agreement 2024 recognizes the right of option for G frontiersmen: you can keep the Italian medical insurance (SSN) or join the Swiss LAMal (with adult deductibles CHF 300-2,500 depending on the model). This choice must be communicated to the employer within the scheduled time and has implications for costs and access to care.

How does the Italian tax credit work if I work in Switzerland and already pay taxes there?

The Italian-Swiss Double Taxation Convention (signed on 9 December 1976) states that income from employment in Switzerland is taxed exclusively in the State where you work. In the EC framework of the Italian declaration 730, you declare the amount of the Swiss tax paid and obtain it as a tax credit. If the Swiss tax is higher than the Italian one calculated on the same income, you do not pay additional taxes in Italy.

Living in Castello Cabiaglio and working in Ticino as a border worker (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 19 August 2026

Aerial view of Ticino-Varese border crossing with Alpine hills and frontier landscape, realistic DSLR photography

Practical guide to the transfer: location, new 2024 agreements taxes, AVS/LPP contributions, LAMal, G permit procedure, costs and advantages.

Context

In a nutshell

Castello Cabiaglio (Varese) is a border area a few km from the Ticino passes of Brogeda, Gaggiolo and Ponte Tresa
New Frontier Agreement in force from 1 January 2024 with revised deductibles (€7,500 old, €10,000 new)
Tax at source calculated ONLY in Switzerland for G border workers, Italian tax credit avoids double taxation
LAMal (Swiss health insurance) mandatory for CH residents, with option right to Italian SSN

Key facts

What: Border residence in Italy (Castello Cabiaglio, Varese) with employee work in Canton Ticino
When: 1 January 2024 (New Frontier Agreement in force; signed 23 December 2020, ratified Italian Law 83 of 13/6/2023)
Where: Castello Cabiaglio; access points: Brogeda, Gaggiolo, Ponte Tresa
Who: Border workers category G (foreign workers employed in Switzerland)
Double taxation agreement: Signed on 9 December 1976 between Italy and Switzerland
Excess 2024+: €7,500 per year (border crossers already as before 17/7/2023); €10,000 (new from 17/7/2023)
Income tax rates: 23% up to €28,000; 35% €28,001-50,000; 43% over €50,000

Castello Cabiaglio, in the province of Varese, has for years been a favourite destination for frontier workers who choose to reside in Italy and commute to the Canton of Ticino. Its geometric proximity to border crossings (Brogeda, Gaggiolo, Ponte Tresa) and a generally lower cost of living compared to

Operational details

Concrete advantages of living in Castello Cabiaglio as a border worker

The proximity to the crossings is the main advantage. A border crossing that resides in Castello Cabiaglio, unlike those who choose more distant areas in Varese or Lombardy, reduces the time and costs of daily commuting to the main Ticino employment centres (Lugano, Bellinzona, Mendrisio, Chiasso). The cost of rent and utilities in the province of Varese remains generally lower than in the Canton of Ticino, allowing a larger portion of the Swiss gross salary to be preserved.

A further advantage, explicitly introduced by the New Frontier Agreement 2024, concerns the right of option in the field of health insurance. G border workers can choose to join the Swiss LAMal (with adult deductibles of CHF 300-2,500 depending on the model) or opt for retention in the Italian National Health Service. This flexibility allows those who reside permanently in Italy to continue to benefit from local medical assistance, potentially reducing healthcare costs.

Finally, those who work as border workers in Switzerland benefit from generally higher salaries and benefit packages compared to the Italian market, which largely compensates for mobility costs and progressive Italian tax rates.

Disadvantages and hidden costs

Daily commuting, although feasible from the position of Castello Cabiaglio, involves

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

## How to move to Castello Cabiaglio and obtain the border permit: step-by-step procedures Step 1: Preliminary documentation (before job search) Before contacting employers in Ticino, prepare the basic documents: - Passport or valid Italian identity card - Curriculum vitae - Certificates/diplomas of professional qualification, duly translated if necessary - CAIS certificate (Certificate of service history) from INPS, if you have already paid Italian contributions (useful for social security coordination) - Declaration of living capacity in Italy (rental contract, cadastral survey, letter from the owner) Step 2: Job offer and application for G permit at SEM Upon receipt of the official offer from the Swiss employer, the latter (or possibly the worker with legal support) submits an application for G permit at the competent SEM for the Canton of Ticino. The application includes: - Signed employment contract or offer letter with start date - Statement of need of the employer (attestation that the role cannot be filled by CH resident) - Valid identity document of the worker - Proof of Italian residence (registry extract, rental contract) Processing times vary (on average from 2 to 6 weeks) according to the SEM load. Once approved, you will receive your Border Work Permit. Step 3: Registration with the administration of the contributions of the The site offers resources dedicated to Italian-Swiss tax coordination. Use the calculator for a realistic simulation: enter your expected SVZ gross salary and get an estimate of the monthly net, taxes, and actual availability after all commuting costs. link

Frequently Asked Questions

What is the difference between old and new frontier workers after the New Frontier Agreement 2024?: The New Agreement, in force from 1 January 2024, distinguishes: (i) frontier workers already in status before 17 July 2023 benefit from a deductible of €7,500 per year and a transitional protection regime until 2033; (ii) new frontier workers (from that date onwards) obtain a deductible of €10,000. The agreement was signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023.
Where is income tax calculated and paid for a border worker living in Castello Cabiaglio?: Income tax is withheld exclusively in Switzerland by the employer (Swiss source tax). Italy, on the basis of the Italian-Swiss Convention of 9 December 1976, recognises this primary taxation and does not apply further tax on the income of employees of Switzerland. In the EC framework of the Italian declaration 730, the border worker declares the Swiss tax paid and obtains it as a tax credit, eliminating the risk of double withdrawal.
What are the social security contributions that a border worker pays in Ticino?: A border worker employed in Ticino pays: (i) AVS/AI/IPG 5.3% paid by the employee; (ii) LAINF (accidents) 0.7–1.5%; (iii) LPP (mandatory pension fund) 7–18% paid by the employer based on age (from 25 years); (iv) AD/AC (unemployment) 1.1% up to a maximum of CHF 148,200. These contributions are administered by the AFC (Federal Contributions Administration) and the competent cantonal administrations.
Can I choose to remain in the Italian National Health Service instead of subscribing to LAMal?: Yes. The New Frontier Agreement 2024 recognizes the right of option for G frontiersmen: you can keep the Italian medical insurance (SSN) or join the Swiss LAMal (with adult deductibles CHF 300-2,500 depending on the model). This choice must be communicated to the employer within the scheduled time and has implications for costs and access to care.
How does the Italian tax credit work if I work in Switzerland and already pay taxes there?: The Italian-Swiss Double Taxation Convention (signed on 9 December 1976) states that income from employment in Switzerland is taxed exclusively in the State where you work. In the EC framework of the Italian declaration 730, you declare the amount of the Swiss tax paid and obtain it as a tax credit. If the Swiss tax is higher than the Italian one calculated on the same income, you do not pay additional taxes in Italy.