Valmadrera Ticino border commuters: 2026 guide (cross-border guide)

Context

In brief

• New Cross-Border Workers Agreement from 1 January 2024: €10,000 allowance for new cross-border workers
• Withholding tax only deducted in Switzerland, double taxation avoided with tax credit
• Free and valid G permit for 1-2 years for EU cross-border workers

Key facts

• What: Living in Valmadrera, Lombardy, and working in Canton Ticino with cross-border status
• When: New Cross-Border Workers Agreement from 1 January 2024
• Where: Valmadrera (Lecco) ↔ Ticino (Border Crossings: Brogeda, Ponte Tresa)
• Who: New cross-border workers EU citizens
• Amount: Annual allowance €10,000 for new cross-border workers (from 2024)

From 1 January 2024, the New Cross-Border Workers Agreement — signed on 23 December 2020 — has revolutionized the tax regime for cross-border workers between Italy and Switzerland. For those living in Valmadrera and working in Ticino, this regulatory change entails a completely new declarative structure compared to previous decades.

The main novelty concerns the annual allowance: new cross-border workers can exclude the first €10,000 of employment income from the Italian tax return. This means that only the amount exceeding this threshold enters the calculation of the Italian IRPEF according to the provided brackets (23% up to €28,000, 35% up to €50,000, 43% beyond).

How the withholding tax works

A fundamental aspect for the cross-border worker domiciled in Italy: the withholding tax is only deducted by Switzerland, never by both countries. The Swiss withholding tax rate — administered by the AFC (Federal Tax Administration) — is paid directly by the employer in the competent canton. Italy thus avoids double taxation through the tax credit, made in the CE section of the tax return (model 730 or Unico).

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Operational details

Double taxation and tax credit

The management of taxation for a cross-border worker living in Italy and working in Switzerland requires an understanding of the Italian-Swiss Convention of December 9, 1976. The tax credit mechanism in the CE section of the 730 form is the tool that prevents paying taxes twice on the same income.

Practical scenario: cross-border worker with €40,000 income

Let's consider a new cross-border worker earning €40,000 gross annually from work in Ticino. With the €10,000 exemption, the taxable income in Italy will be €30,000. If the Italian IRPEF rate were 23% for the first brackets, the theoretical Italian tax would be calculated on this amount. However, the withholding tax already deducted in Switzerland — certified by the employer through the payslip and official documentation — compensates and often exceeds this debt. The tax credit in the CE section allows recovering the differential.

Old cross-border workers vs new cross-border workers

A critical aspect of the New Cross-Border Agreement concerns two different groups. Cross-border workers who were already such before July 17, 2023, benefit from a protected transitional regime: they retain an exemption of €7,500 until December 31, 2033. New cross-border workers from January 1, 2024, enter the regime with a €10,000 exemption, without temporary protection.

This differentiation creates scenarios of advantage for old cross-border workers during the transitional period, but new cross-border workers enjoy a higher exemption from the first day of work. 💡

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Key points

Step-by-step procedure for the first year of work

Step 1: Request Permit G at SEM Submit an application at the nearest border office (Brogeda, Gaggiolo, Ponte Tresa) or at the SEM office of the Canton Ticino competent for the workplace. Required documents: employment contract, passport or ID card, residence certificate from Valmadrera (from the Italian municipality). The permit is free and usually processed within 5-10 working days.

Step 2: Registration of AVS number The Ticino employer must register the cross-border worker with the AVS number at the cantonal AVS office or through an online procedure. If the number has not yet been assigned, it will be generated automatically. Keep the registration certificate, as it is needed for future declarations and contributions.

Step 3: Enrollment in LAMal (if desired) If you wish to choose Swiss health coverage, contact an authorized health insurance company in Ticino — many also operate from remote offices in Italy — and sign a policy. The start date of the coverage must coincide with or precede the start of work. Alternatively, the coverage of the Italian National Health Service remains valid.

Step 4: 730 Declaration with CE Form At the end of the calendar year, submit the income tax return (model 730 or Unico for the previous tax year) to the Revenue Agency indicating the gross income from work in Switzerland. In the CE form (tax credits), report: gross amount earned in Switzerland, withholding tax paid (certified by the employer through a certificate or bank statement), tax rate applied by the canton, and the tax credit calculated automatically by the 730 software.

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