When did the New Border Arrangement come into force and when was it signed?

The New Agreement between Italy and Switzerland on frontier workers 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 text introduces the distinction between old and new frontier workers, based on the date of 17 July 2023, and provides for a transitional regime 2024-2033 for old frontier workers.

How do you avoid double taxation for a border worker living in Cremenaga?

Employee income tax at source is withheld only in Switzerland. Italy avoids double taxation through the tax credit mechanism, which the border agent indicates in the EC framework of the tax return (model 730). The legal basis for coordination is the Double Taxation Convention between Italy and Switzerland, signed on 9 December 1976, taking into account that Switzerland is not a member of the EU or the EEA.

What are the allowances and regimes for old and new frontier workers?

Old frontier workers, already in this category before 17 July 2023, benefit from an exemption of €7,500 taxable for personal income tax purposes for the transitional period 2024-2033. The new frontier workers, hired after July 17, 2023, have a €10,000 deductible. The applicable income tax brackets remain the ordinary ones: 23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000.

How does healthcare work for a border worker living in Cremenaga?

With the New Agreement in force since 2024, new frontier workers are obliged to register with the Swiss LAMal and cannot choose the Italian National Health Service. The right of option for G permit holders, which allows them to choose between LAMal and SSN, is maintained only for old border crossers, for the entire duration of the transitional regime 2024-2033. Annual allowances for adults range from CHF 300 to CHF 2,500.

What social contributions are withheld from the Swiss paycheck?

On the gross salary of the employee in Switzerland are retained: AVS/AI/IPG 5.3%; AD/AC 1.1% (with a ceiling over CHF 148'200); LAINF from 0.7% to 1.5% depending on the sector; LPP from 7% to 18% by age group, with obligation from the 25th year. The tax at source is instead calculated and withheld separately, according to federal, cantonal and municipal rates.

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

Di Redazione Frontaliere Ticino · Published on 27 August 2026

View of Cremenaga village near the border with Canton Ticino

Practical guide for Italian border workers: tax, G permit, LAMal, connections and cost of living on the Italy-Swiss side.

Context

In a nutshell

New Frontier Agreement signed on 23.12.2020, in force since 1.1.2024
Withholding tax withheld only in Switzerland; Italy avoids double taxation with tax credit (EC framework of 730)
Old frontier workers: exemption of €7,500 and transitional regime 2024-2033; new: deductible of €10,000
For health, new frontier workers are obliged to Swiss LAMal; the option between LAMal and SSN applies only to old frontier workers

Key facts

What: New Agreement between Italy and Switzerland on frontier workers
When: Signed on 23 December 2020, effective from 1 January 2024
Where: Canton of Ticino and Italian border regions (Lombardy, Piedmont)
Who: Italian ratification with Law 83 of 13 June 2023
What: Italy-Switzerland Double Taxation Convention
When: Signed on 9 December 1976
What: Employee's Swiss social contributions
Amount: AVS/AI/IPG 5.3%; AD/AC 1.1% (maximum CHF 148'200); LAINF 0.7-1.5%; LPP 7-18% by age group (from 25th year)
What: Italian income tax brackets of reference
Amount: 23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000

Living in Cremenaga, a small Italian town in the province of Varese near the border with Switzerland, is a choice that many workers consider when commuting to the Canton of Ticino. The village is located in a convenient location for those who must reach the passes of the area of Ponte Tresa, Gaggiolo or Stabio, from which

Operational details

Analysis: costs, wages and practical coordinates for the border crossing

Before deciding on the transfer, it is advisable to compare the items that weigh the most on the family budget: Swiss net salary, social contributions, the cost of housing in Italy and daily travel expenses. The gross salary of Ticino is subject, on the employee side, to Swiss social security and insurance deductions. AVS, AI and IPG absorb 5.3% of the salary, AD and AC 1.1% (with a ceiling on contributions that goes beyond CHF 148'200), LAINF from 0.7% to 1.5% based on the branch of activity, and the LPP from 7% to 18% by age group, with a contribution obligation from the 25th year of age.

These deductions finance Swiss social benefits and affect the net payroll, but do not eliminate the obligation to declare income in Italy: the border worker must submit the Italian declaration, indicating the foreign income in the EC framework and using the tax credit to avoid double taxation. The administrations involved are the AFC/ESTV at federal level and the cantonal administrations of the contributions for the cantonal and municipal component of the tax at source. Switzerland, as you know, is not part of the EU or the EEA: the border agreement is a bilateral treaty and not an act derived from Community law.

Distance, crossings and travel times

Cremenaga is connected to Ticino through the minor crossings of the area of Ponte Tresa and Stabio,

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

Action: what to do before and after the transfer

The first step is to check your position in relation to the date of 17 July 2023, which separates the regime of the old cross-border workers from that of the new ones. Those who were already cross-border workers on that date retain the €7,500 exemption and the right to opt for Swiss health insurance until 2033; those starting afterwards fall under the new regime, with the €10,000 allowance and the obligation to take out Swiss LAMal health cover. The Swiss employer is the party that withholds the source tax and the social security contributions (AVS, AI, IPG, AD, AC, LAINF, LPP), and that pays the salary according to the rules of Canton Ticino.

Operational procedure

The concrete sequence for someone moving to Cremenaga and starting a new job in Ticino involves several essential steps. First, the signing of the Swiss employment contract and the opening of insurance and pension positions, with registration in the LPP pension fund if the contributory age applies. Second, the issuing of the G permit by the cantonal migration authorities, with coordination by the SEM at federal level. Third, for new cross-border workers, mandatory registration with a LAMal health insurance fund within the deadlines set by the Canton, choosing the annual deductible best suited to your healthcare spending profile.

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Frequently Asked Questions

When did the New Border Arrangement come into force and when was it signed?: The New Agreement between Italy and Switzerland on frontier workers 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 text introduces the distinction between old and new frontier workers, based on the date of 17 July 2023, and provides for a transitional regime 2024-2033 for old frontier workers.
How do you avoid double taxation for a border worker living in Cremenaga?: Employee income tax at source is withheld only in Switzerland. Italy avoids double taxation through the tax credit mechanism, which the border agent indicates in the EC framework of the tax return (model 730). The legal basis for coordination is the Double Taxation Convention between Italy and Switzerland, signed on 9 December 1976, taking into account that Switzerland is not a member of the EU or the EEA.
What are the allowances and regimes for old and new frontier workers?: Old frontier workers, already in this category before 17 July 2023, benefit from an exemption of €7,500 taxable for personal income tax purposes for the transitional period 2024-2033. The new frontier workers, hired after July 17, 2023, have a €10,000 deductible. The applicable income tax brackets remain the ordinary ones: 23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000.
How does healthcare work for a border worker living in Cremenaga?: With the New Agreement in force since 2024, new frontier workers are obliged to register with the Swiss LAMal and cannot choose the Italian National Health Service. The right of option for G permit holders, which allows them to choose between LAMal and SSN, is maintained only for old border crossers, for the entire duration of the transitional regime 2024-2033. Annual allowances for adults range from CHF 300 to CHF 2,500.
What social contributions are withheld from the Swiss paycheck?: On the gross salary of the employee in Switzerland are retained: AVS/AI/IPG 5.3%; AD/AC 1.1% (with a ceiling over CHF 148'200); LAINF from 0.7% to 1.5% depending on the sector; LPP from 7% to 18% by age group, with obligation from the 25th year. The tax at source is instead calculated and withheld separately, according to federal, cantonal and municipal rates.