What is the difference between old and new frontiersmen?

The old cross-border commuters are those already in place before 17 July 2023: an exemption of €7,500 is foreseen for them and a transitional regime from 2024 to 2033. The new frontier workers have a deductible of €10,000. The verification therefore starts from the date of July 17, 2023 and the applicable category.

Where is earned income tax withheld?

The source indicates a withholding tax only in Switzerland. Italy avoids double taxation with the tax credit reported in the EC framework of 730. For the frontier worker, the tax credit is therefore the Italian mechanism to be linked to the tax return.

What Swiss contributions affect the paycheck?

The rates indicated are AVS/AI/IPG 5.3% borne by the employee, AD/AC 1.1% with a cap of CHF 148'200, LAINF between 0.7% and 1.5% and LPP between 7% and 18% by age group from the 25th year. These are social security and insurance items to be kept separate from the tax at source.

What should be checked by who has the G permit for LAMal?

LAMal is the health insurance and border workers with a G permit have the right of option. For adults, the deductibles indicated by the source range from CHF 300 to CHF 2,500. This verification must be kept separate from the calculation of the tax at source and from the AVS, LPP, AD/AC and LAINF contributions.

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

Di Redazione Frontaliere Ticino · Published on 29 September 2026

Cross-border commuter heading to Ticino at dawn, with rolling hills and natural light

For those living in Castelseprio, border agreements in force from 1 January 2024: exemption of €7,500 for the old and deductible of €10,000 for the new.

Context

In brief

Agreement signed on 23 dicembre 2020
In force since 1° gennaio 2024
Old cross-border workers: €7'500 exemption
New cross-border workers: €10'000 allowance

Key facts

Italy-Switzerland Convention → 9 marzo 1976
Italian ratification → Law 83 of 13 giugno 2023
Transitional regime → 2024–2033
Income tax → withheld only in Switzerland

Dates and categories to check

The new Cross-Border Workers Agreement was signed on 23 dicembre 2020 and has been in force since 1° gennaio 2024. For those who live in Castelseprio and work in Canton Ticino, this is the first date to put at the top of the tax review. Italian ratification came with Law 83 of 13 giugno 2023.

The text distinguishes old cross-border workers, who were already in that status before 17 luglio 2023, from new cross-border workers. The former are subject to an exemption of €7'500 and a transitional regime valid from 2024 to 2033. For new cross-border workers, the allowance is €10'000. The date of 17 luglio 2023 therefore becomes the reference point to check when reconstructing one’s position, especially if moving to Castelseprio accompanies a new employment relationship in Ticino.

The framework is that of the Convention against double taxation between Italy and Switzerland, signed on 9 marzo 1976. Switzerland is not a member of the EU or the EEA. For employment income, the rule indicated is precise: withholding takes place only in Switzerland, through withholding tax. Italy avoids double taxation through the tax credit in section CE of the 730.

For a cross-border worker with a G permit, the review concerns not only income: AVS, LPP and LAMal are included in the check along with the payslip and health coverage. Anyone with a G permit has the right to choose LAMal; for adults, the indicated deductibles range from CHF 300 to CHF 2'500. The first practical step is to separate these items from withholding tax, so as not to confuse taxation, social security and health insurance. To learn more about insurance, consult LAMal e assicurazione malattia and, for status, the guide to permesso G/B.

Operational details

How to interpret the transfer in the household budget

The tax advantage to be compared is not a universal number, but a combination of the cross-border worker category, Swiss withholdings, and Italian regulations for the year in question. A resident of Castelseprio evaluating employment in Canton Ticino must distinguish at least between the gross salary, withholding tax, social security contributions, and tax exemptions. The net income is not derived by automatically adding up tax rates: each item has a different function.

Situation	Data to compare
Old cross-border workers	€7,500 exemption and 2024–2033 transitional regime
New cross-border workers	€10,000 tax-free allowance
Employment income	Withholding tax only in Switzerland; tax credit in the CE section of the 730 tax return

The second level is social security. For the employee, AVS/AI/IPG accounts for 5.3%; AD/AC is at 1.1% with a cap of CHF 148,200; LAINF ranges between 0.7% and 1.5%; LPP ranges from 7% to 18% depending on the age bracket, starting from the 25th year. Reading these percentages alongside the withholding tax helps explain why a change in gross salary does not coincide with the same change in net income. The LPP, in particular, should not be confused with the AVS: they are different social security items.

The fiscal year also changes the comparison. From 2026, Italian IRPEF is set at 23% up to €28,000, 33% between €28,001 and €50,000, and 43% over €50,000, according to Law 199/2025, article 1, paragraph 3. For 2024–2025 incomes, the reported rates are 23%, 35%, and 43%. Anyone preparing a simulation must therefore associate the income with the correct year, without applying 2026 brackets to previous periods.

On a daily basis, the cost of living must be kept separate from taxation. The comparison between Italian and Swiss expenses can be carried out using the Ticino vs Italy cost of living tool, while the commute requires checking the specific border crossing used. For a crossing like Brogeda, the border waiting times tool is available. The topic of 'ristorni' (tax rebates) can be explored in the Ticino-Italy tax rebates guide, without overlapping it with the exemption or the tax-free allowance applied to income.

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

The operational checklist

1. Define your category. Verify if you were already a cross-border commuter before July 17, 2023. If yes, the comparison starts from the €7,500 exemption and the 2024–2033 transitional regime; if you are a new cross-border commuter, consider the €10,000 threshold. This step comes before any simulation.

2. Set the calendar. Keep the signing of the Cross-Border Commuter Agreement (December 23, 2020), the Italian ratification via Law 83 of June 13, 2023, and the entry into force on January 1, 2024, separate. Using different dates as if they indicated the same event leads to an incorrect reading of the regime.

3. Read your payslip by blocks. Isolate the withholding tax, which for employment income is deducted only in Switzerland, then AVS/AI/IPG, AD/AC, LAINF, and LPP. For numerical verification, use the indicated rates: 5.3%, 1.1% with a cap of CHF 148,200, 0.7–1.5%, and 7–18% from the age of 25. For the Italian part, link the income to the 730 form and the CE section, keeping the tax credit distinct.

4. Verify health and authorities. If you hold a G permit, include the LAMal option right and the adult deductible between CHF 300 and CHF 2,500 in your verification. Regarding tax rates, the reference is the AFC/ESTV at the federal level and the cantonal tax administrations: they are the ones who administer the rates established by federal and cantonal laws. The FSIO (UFAS) concerns social security and the FSO (BFS) concerns statistics; these are not the entities responsible for setting tax rates.

5. Complete the comparison before deciding to relocate. Use the cost of living, border crossing checks, and the tax rebate chapter as separate verifications. If your choice also concerns your future pension, consult the guide AVS/LPP and pension. For an organized reading of deductions and net income, open the salary tax calculator.

Frequently Asked Questions

When did the New Frontier Agreement come into force?: It was signed on 23 December 2020 and is effective from 1 January 2024. The Italian ratification is Law 83 of 13 June 2023. For those who live in Castelseprio and work in Canton Ticino, these dates serve to separate signature, ratification and entry into force; they should not be replaced with a reference to 2026.
What is the difference between old and new frontiersmen?: The old cross-border commuters are those already in place before 17 July 2023: an exemption of €7,500 is foreseen for them and a transitional regime from 2024 to 2033. The new frontier workers have a deductible of €10,000. The verification therefore starts from the date of July 17, 2023 and the applicable category.
Where is earned income tax withheld?: The source indicates a withholding tax only in Switzerland. Italy avoids double taxation with the tax credit reported in the EC framework of 730. For the frontier worker, the tax credit is therefore the Italian mechanism to be linked to the tax return.
What Swiss contributions affect the paycheck?: The rates indicated are AVS/AI/IPG 5.3% borne by the employee, AD/AC 1.1% with a cap of CHF 148'200, LAINF between 0.7% and 1.5% and LPP between 7% and 18% by age group from the 25th year. These are social security and insurance items to be kept separate from the tax at source.
What should be checked by who has the G permit for LAMal?: LAMal is the health insurance and border workers with a G permit have the right of option. For adults, the deductibles indicated by the source range from CHF 300 to CHF 2,500. This verification must be kept separate from the calculation of the tax at source and from the AVS, LPP, AD/AC and LAINF contributions.