How is double taxation between Italy and Switzerland handled?

Double taxation is avoided through the tax credit. The border worker pays the tax at source in Switzerland and, when filing a tax return in Italy, enters these amounts in the EC framework of the 730 form to obtain the tax credit.

What are the Italian personal income tax rates applied to border workers?

Italian income tax provides for three tiers: 23% for incomes up to 28,000 euros, 35% for the range from 28,001 to 50,000 euros and 43% for the part of income above 50,000 euros.

What changes for old frontier workers from 2024?

Border workers already employed before 17 July 2023 fall under a transitional regime that will last until 2033, providing for an exemption of 7,500 euros, in line with the provisions of the new Frontier Agreement.

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

Di Redazione Frontaliere Ticino · Published on 31 July 2026

Practical guide for those who choose Varzo as a residence while working in Ticino: tax, new agreement, social security and income management.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024.
Withholding tax withheld only in Switzerland.
Tax credit in Italy through the EC framework of 730.
Excess provided for new and old frontier workers.

Key facts

What: Varzo-Ticino commuting.
When: New Agreement from 1 January 2024.
Where: Border between Italy and Canton Ticino.
Who: Frontiers, AFC, Revenue Agency.
Income tax rates: 23% up to €28,000, 35% up to €50,000, 43% over.

Commuting between Varzo and the Canton of Ticino requires a precise understanding of the current regulatory framework. From 1 January 2024, the new Frontier Agreement is in force, ratified in Italy with Law 83 of 13 June 2023, which substantially modifies the tax management for those residing in Italy and serving in Switzerland. Taxation at source remains the mainstay of the system, managed by the Federal Tax Administration (AFC/ESTV). The withholding takes place exclusively in Switzerland, avoiding double taxation thanks to the tax credit included in the EC framework of the Italian model 730. Valid reference bodies for administrative management include SECO, the Federal Statistical Office (BFS/USTAT) and the Italian tax authorities.

Tax regime and deductibles

The new system provides for distinctions between old and new frontiersmen. Those who were already border workers before 17 July 2023 benefit from a transitional regime valid until

Operational details

The practical analysis of commuting from Varzo to Ticino involves evaluating mandatory social contributions. Employees are subject to Swiss deductions, which cover various essential social security protections. The AHV/IV/EO contributions amount to 5.3% paid by the employee, while for Unemployment Insurance (ALV/AC) a deduction of 1.1% is applied up to an income ceiling of 148,200 CHF. Accident insurance (UVG) varies between 0.7% and 1.5%, depending on the activity and risk profile. Regarding the second pillar (BVG), the contribution ranges between 7% and 18% based on the age bracket, with mandatory enrollment starting at age 25.

Health and pension management

Cross-border commuters residing in Varzo must consider the KVG/LAMal, the mandatory health insurance. Commuters with a G permit have the right of option, allowing them to choose the health coverage best suited to their needs. Deductibles for adults vary in a range between 300 and 2,500 CHF. This choice must be carefully considered, as the KVG/LAMal is not a 'health tax' but an essential insurance system. To calculate the net salary, it is advisable to use updated simulation tools. Long-term planning should also include monitoring the third pillar, which offers complementary tax benefits. The double taxation agreement of December 9, 1976, remains the reference for relations between Italy and Switzerland, considering that Switzerland is not an EU or EEA member. To examine your situation in more detail, you can use the tax calculator integrated into the portal, which allows you to estimate your monthly net income considering current mandatory deductions and applicable tax rates.

Useful planning tools

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

Key points

The procedure for those working in Ticino from Varzo requires obtaining and renewing the necessary permits, such as the G Permit. It is advisable to maintain organized documentation of every payslip and annual salary certificate, which are essential for filing tax returns in Italy. Accuracy in reporting data in the CE section of the 730 form ensures the application of the tax credit, avoiding the undue payment of taxes already settled at the source in Swiss territory. It is recommended to periodically check the Italian Revenue Agency circulars regarding the calculation methods for the tax credit, especially in view of annual tax deadlines. For those who need easier management of their income, opening a bank account suited to cross-border needs is a recommended step. Managing the cost of living between Varzo and Ticino directly affects monthly net savings, so it is useful to monitor currency exchange fluctuations, given the nature of the salary received in Swiss francs. For proper financial planning, it is appropriate to consult specific guides on occupational pension schemes (LPP) and the progress of AVS deductions, in order to always keep one's contribution total under control. The stability of one's professional path also depends on correctly managing relations with Swiss authorities, always through official and verified channels. For those starting a new job, the checklist for the first day of work provides useful information on permits and necessary documentation. Finally, to accurately calculate net income, it is recommended to consistently use the official calculator available on the portal, which allows for simulating different salary scenarios and understanding their actual tax impact after AVS, LPP, and withholding tax.

Frequently Asked Questions

How is double taxation between Italy and Switzerland handled?: Double taxation is avoided through the tax credit. The border worker pays the tax at source in Switzerland and, when filing a tax return in Italy, enters these amounts in the EC framework of the 730 form to obtain the tax credit.
What are the Italian personal income tax rates applied to border workers?: Italian income tax provides for three tiers: 23% for incomes up to 28,000 euros, 35% for the range from 28,001 to 50,000 euros and 43% for the part of income above 50,000 euros.
What changes for old frontier workers from 2024?: Border workers already employed before 17 July 2023 fall under a transitional regime that will last until 2033, providing for an exemption of 7,500 euros, in line with the provisions of the new Frontier Agreement.