What is the difference between old and new frontiersmen for the franchise?

Old frontier workers, defined as such if they reside in the border area before 17 July 2023, benefit from a deductible of 7,500 euros. For new frontier workers, hired after that date, the deductible was set at 10,000 euros, in accordance with the provisions of the new tax agreement.

How is double taxation avoided?

The mechanism to avoid double taxation is based on the tax credit. The worker pays the tax at source in Switzerland. Subsequently, in Italy, it must declare the income in form 730, EC framework, deducting what has already been paid in Switzerland, so that the overall tax burden is not duplicated.

What social contributions are withheld on the Swiss paycheck?

AVS/AI/IPG contributions (5.3% paid by the employee), unemployment insurance (AD/AC) of 1.1% up to a ceiling of CHF 148,200, LAINF (0.7-1.5%) and the second pillar (LPP), whose rate varies from 7% to 18% depending on the age of the worker, are retained on the Swiss payroll.

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

Di Marco Ferrari · Published on 9 August 2026

Alpine landscape at the Swiss-Italian border

Practical guide for border workers: taxes, new tax agreement and income management between Italy and Canton Ticino.

Context

Brief Overview

New fiscal agreement in effect from January 1, 2024.
Source taxation applied exclusively in Switzerland.
Italian tax credit avoids double taxation.
Exemption of 7,500 euros for old border workers.

Key Facts

What: Agreement for border workers
When: In effect from January 1, 2024
Where: Canton Ticino and Italy
Who: Federal Administration of Contributions (AFC)
Amount: 7,500 euros (old border workers), 10,000 euros (new)

…

Operational details

The analysis of the cost of living and social security charges requires a clear understanding of the contributions paid on the Swiss paycheck. In addition to the tax at source, the worker is subject to mandatory deductions: unemployment insurance (AD/AC) is 1.1% up to a ceiling of CHF 148,200, while the LAINF ranges from 0.7% to 1.5%. From 25 years of age, payments for the second pillar (LPP) are added, with rates varying between 7% and 18% depending on the age group. Compared to the previous legislation, the new agreement introduced greater clarity in the management of the tax credit. For the calculation of net income, it is necessary to consider that the Italian personal income tax rates applicable to total income, once the deductible is deducted, are progressive: 23% up to 28,000 euros, 35% for the 28,001-50,000 euro range and 43% over 50,000 euros. The comparison between the pre-2024 situation and the current one shows how the management of the calcolatore stipendio has become an obligatory step for every worker. Despite regulatory changes, the key principle remains the neutralisation of double taxation. The hypothetical scenarios indicate that for a worker with average income, the correct application of the tax credit allows to maintain a balanced spending capacity between the cost of living in Trasquera and Swiss salaries. It is advisable to constantly monitor the communications of the Agency of

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 management of one's frontier position requires a precise checklist to avoid errors in the declaration of income. The first step is the correct compilation of the 730 model, inserting the data related to the income received in Switzerland in the CE box to request the tax credit. For new frontiersmen, the 10,000 euro threshold represents an important exemption threshold that must be monitored annually. It is recommended to always keep up-to-date the documentation related to the contributions paid, including AVS and LPP, to compare them with the annual certifications issued by the Swiss employer. The procedure for paying the withholding tax is automated by the employer, who deducts the amount due directly from the gross salary before paying it to the employee. Regarding social security, the second pillar (LPP) represents a mandatory savings form that, in certain conditions, can be managed or redeemed. It is highly recommended to use online tools to simulate one's monthly net income, taking into account the current pre- and post-tax deductions. For those who need a comprehensive view of their purchasing power, the cost of living in Ticino compared to the Italian place of residence can be analyzed through dedicated comparators. In case of doubts about one's fiscal position, consulting the circulars of the Italian Revenue Agency remains the safest way. We remind you that changes in Italian IRPEF tax rates directly affect the calculation of the tax credit; therefore, an annual review of one's situation is essential to optimize the overall tax burden. For a detailed analysis of one's monthly net salary, we invite you to use the salary calculator.

Frequently Asked Questions

What is the difference between old and new frontiersmen for the franchise?: Old frontier workers, defined as such if they reside in the border area before 17 July 2023, benefit from a deductible of 7,500 euros. For new frontier workers, hired after that date, the deductible was set at 10,000 euros, in accordance with the provisions of the new tax agreement.
How is double taxation avoided?: The mechanism to avoid double taxation is based on the tax credit. The worker pays the tax at source in Switzerland. Subsequently, in Italy, it must declare the income in form 730, EC framework, deducting what has already been paid in Switzerland, so that the overall tax burden is not duplicated.
What social contributions are withheld on the Swiss paycheck?: AVS/AI/IPG contributions (5.3% paid by the employee), unemployment insurance (AD/AC) of 1.1% up to a ceiling of CHF 148,200, LAINF (0.7-1.5%) and the second pillar (LPP), whose rate varies from 7% to 18% depending on the age of the worker, are retained on the Swiss payroll.