How has border workers' income been taxed since 2024?

From 1 January 2024, the new tax agreement provides that frontier workers pay the tax at source in Switzerland. Italy, to avoid double taxation, applies the tax credit in form 730, based on the rules of the 1976 Convention.

Which income does the €10,000 limit apply to?

Article 9’s transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the limit for income referred to in Article 1(175) of Law 147/2013, not a general allowance. [FTA factsheet](https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf) · [Agreement, Article 9](https://www.fedlex.admin.ch/eli/cc/2023/410/en) · [Normattiva, Article 4](https://www.normattiva.it/atto/caricaDettaglioAtto?atto.articolo.numero=4&atto.codiceRedazionale=23G00087&atto.dataPubblicazioneGazzetta=2023-06-30&bloccoAggiornamentoBreadCrumb=true&classica=true&dataVigenza=09%2F09%2F2026&generaTabId=true&tipoDettaglio=singolavigenza&title=lbl.dettaglioAtto).

What is the right of option for LAMal?

It is the right granted to border workers with a G permit to choose whether to insure against diseases in Switzerland through LAMal. The choice must be formalized following the procedures provided by the competent authority.

Living in Maccagno with Pine and Veddasca and working in Ticino

By Redazione Frontaliere Ticino (AI-generated text) · Published on 28 July 2026 · Updated on 31 October 2026

Panoramic view of Lake Lugano, ideal location for those living between Italy and Ticino.

Practical guide for border workers: connections, taxation and daily life between Maccagno and Ticino in compliance with current regulations.

Context

In a nutshell

The new tax agreement is in force from 1 January 2024.
Border workers pay the tax at source in Switzerland.
Italy applies the tax credit to avoid double taxation.
Maccagno is a strategic point for commuting to the Canton of Ticino.

Key facts

What: Cross-border commuting and taxation.
When: New agreement in force from 1 January 2024.
Where: Maccagno with Pine and Veddasca (IT) and Canton Ticino (CH).
Who: Federal Tax Administration (FTA).
For Article 9 of the Agreement, “old frontier workers” are people who met the tax requirements and worked in Graubünden, Ticino or Valais on 17 July 2023 or during the period from 31 December 2018 through 17 July 2023. Article 9 keeps covered employment income taxable exclusively at source in Switzerland; other workers follow the ordinary regime, with ordinary taxation in Italy, a credit for Swiss tax and Swiss withholding at 80% of the ordinary rates. The €10,000 figure in Article 4 of Italian Law No. 83/2023 is only the income limit referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance for new frontier workers. Sources: ESTV factsheet (Italian) · Agreement, Art. 9 · Law No. 83/2023, Art. 4.

The commute between Maccagno con Pino and Veddasca and the Canton of Ticino represents a lifestyle choice for many workers who work across borders. From 1 January 2024, the regulatory framework was redefined by the new tax agreement, signed on 23 December 2020 and ratified by Law 83 of 13 June 2023. This document is essential for anyone who intends to plan their professional career in Switzerland while maintaining their residence in the municipality of Varese. The tax discipline provides that the border crossing is subject to a withholding tax calculated according to the directives of the Federal Tax Administration (AFC). It is essential to understand that, for frontier workers, the tax is only withheld in Switzerland. To avoid double taxation, Italy recognises a tax credit, to be correctly declared in the EC framework of the

Operational details

The practical analysis of the life of cross-border workers requires a clear understanding of social contributions and deductions that impact the Swiss payslip. In addition to the withholding tax, the worker must consider the payment of AVS/AI/IPG contributions, which amount to 5.3% for the employee, and the unemployment insurance contribution (AD/AC) equal to 1.1% up to a salary cap of 148,200 francs. The accident insurance coverage (LAINF) varies between 0.7% and 1.5%, while the second pillar (LPP) requires contributions ranging from 7% to 18% depending on age group, starting from age 25.

Useful planning tools

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

Key points

For those starting to work in the Canton of Ticino residing in Maccagno, the regularization process is clear and requires attention to bureaucratic details. The first step is obtaining the G permit, which certifies the status of cross-border worker. Subsequently, it is necessary to notify your municipality of residence in Italy about the employment change, ensuring registration with AIRE if needed, even though for daily commuters the fiscal residence remains in Italy.

Operational steps

Swiss payroll management involves checking the withholding tax applied by the employer. It is advisable to regularly request the calculation of taxes paid to prepare the Italian tax return as accurately as possible. Regarding LAMal insurance, the cross-border worker must exercise the option right with the competent authority within the established deadlines to avoid sanctions or bureaucratic complications. Many workers find it useful to regularly review their social security statement to verify the correct payment of AVS and LPP contributions.

Planning the daily route to the border crossings requires constant monitoring of traffic conditions, especially during peak hours. Using digital tools for tax calculation is an essential step for anyone wishing to have a clear view of their net income. It is recommended to use the salary calculator to simulate deductions and taxes, thus obtaining a realistic projection of the monthly earnings. This tool allows entering data related to gross salary and provides an accurate estimate, considering current rates. Additionally, for those wishing to deepen their understanding of their social security situation, it is possible to consult guides dedicated to the second pillar LPP to better understand how mandatory savings will influence future retirement. Finally, proper management of fiscal documents, including the Swiss employer's certification, is vital for filing the Italian tax return via the 730 form, using the tax credit to avoid double taxation. Adopting a methodical procedure, which includes monitoring deadlines and properly archiving documentation, ensures a smooth management of cross-border employment activities.

Frequently Asked Questions

How has border workers' income been taxed since 2024?: From 1 January 2024, the new tax agreement provides that frontier workers pay the tax at source in Switzerland. Italy, to avoid double taxation, applies the tax credit in form 730, based on the rules of the 1976 Convention.
Which income does the €10,000 limit apply to?: Article 9’s transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the limit for income referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4.
What is the right of option for LAMal?: It is the right granted to border workers with a G permit to choose whether to insure against diseases in Switzerland through LAMal. The choice must be formalized following the procedures provided by the competent authority.