What is the difference between old frontier workers and new frontier workers in the New Frontier Agreement?

Those who were border workers before 17 July 2023 benefit from an exemption of €7,500 per year from Italian taxable income, with a transitional regime guaranteed until 2033. The new frontier workers (from 17 July 2023 onwards) have a deductible of €10,000 per year. Both benefit from the New Frontier Agreement in force since 1 January 2024, ratified by Italy with Law no. 83 of 13 June 2023. This is the main novelty compared to the 1976 Convention.

How does the Italian tax credit work for Swiss tax paid at source?

Income tax at source is only withheld in Switzerland by the employer. In Italy, fill in form 730 with the EC framework and communicate the Swiss tax to the Revenue Agency. Italy recognizes a credit up to IRPEF that you would have had to pay if the income had been Italian, avoiding double taxation. If the Swiss tax exceeds this IRPEF (reduced by the exemption), the difference becomes a refund (credit to account).

What are the Swiss contribution rates paid by border employees?

AVS/AI/IPG: 5.3% of gross salary; AD/AC: 1.1% (up to CHF 148,200); LAINF: 0.7-1.5%; LPP: 7–18% according to age (from 25 years). Total: 25-30% of gross. These contributions finance social security, unemployment, accidents and the Swiss pension fund, which are much more structured than the Italian INPS. The frontier worker obtains full rights to the AVS without contribution gaps.

What is G Leave and how do I request it?

Permit G is the border working document issued by the SEM (Swiss State Secretariat for Migration) at the request of the Swiss employer. It is mandatory for all border workers, including those from the EU, and is valid for 1-5 years (renewable). You need a passport/identity card, a signed employment contract, a certificate of residence from the Italian municipality. The Ticino cantonal offices coordinate the procedure.

Do border guards in category G have to be insured at the Swiss LAMal?

No. Border workers in category G have the right of option: they can choose to insure themselves at a Swiss sickness fund (LAMal, with adult deductibles from CHF 300 to CHF 2,500) or maintain Italian coverage through INPS. It is a personal decision that affects the monthly budget and the quality of health coverage. Consult an insurance broker before deciding.

Living in Lonate Ceppino: Ticino border guide (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 21 August 2026

Highway at Swiss-Italian border in Ticino region with Alpine landscape view

Tax structure, social contributions and practical procedures for those who choose to live in Varese and work in Ticino with the New Frontier Agreement.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024
Withholding tax withheld ONLY in Switzerland
Old frontier workers: exemption €7,500 (2024–2033)
Permit G: basic document for cross-border work

Key facts

What: New Italy-Switzerland Border Agreement (IT ratification: Law no. 83/2023)
When: Effective January 1, 2024 (signed December 23, 2020)
Where: Lombardy-Canton border Ticino
Who: Italian and Swiss Government; Revenue Agency, SEM (Secretariat of State for Migration)
Income exemption: €7,500 for old border workers (transitional regime 2024–2033)
Deductible: €10,000 for new frontier workers
Source tax: Withheld by the Swiss employer, never from Italy

Those who live in Lonate Ceppino and work in Ticino face a double tax and contribution reality: the border is not only geographical. From 1 January 2024, the New Frontier Agreement – signed on 23 December 2020 and ratified by Italy with Law no. 83 of 13 June 2023 – amended the taxation rules for those travelling between Lombardy and Ticino.

The main novelty concerns where the tax is paid at source: exclusively in Switzerland, by the employer. There is no longer the complexity of a simultaneous double withholding. This simplifies the mechanism, even if the overall management remains articulated.

The New Frontier Agreement: exemptions and transience

The New Agreement

Operational details

Contributions and social security: AVS, LPP, LAMal

Working in Ticino, the border worker pays Swiss social security contributions, not to the Italian INPS. It is one of the decisive advantages: the Swiss system AVS (Old Age and Survivors Insurance), AI (Disability Insurance) and IPG (Profit Loss) completely replaces the Italian contribution during employment in Switzerland.

The Swiss contribution rates borne by the employee are:

AVS/AI/IPG: 5.3% of gross salary
Unemployment insurance (AD) and Insurance against the effects of the crisis (AC): 1.1% (with a maximum limit of CHF 148,200 of taxable income)
Accident insurance (LAINF): 0.7-1.5% (partially or totally borne by the employer, depending on the contract)
Pension fund (LPP – Law on occupational pension): 7–18% depending on the age group (from 25 years onwards)

The grand total reaches 25-30% of gross salary. It is a significant percentage, but it reflects the quality of the Swiss system: the AVS guarantees well-structured pension, disability and survivors' benefits, the second pillar (LPP) accumulates individual capital for the pension, and occupational pension is strictly regulated.

For health insurance, the border worker category G has the right of option: he can insure himself at a Swiss health fund (LAMal – Health Insurance Act) with deductibles for adults from CHF 300 to CHF 2,500,

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

If you live in Lonate Ceppino and have just found a job in Ticino, the first actor in the procedure is the Swiss employer. It is the company that initiates the request for a G Permit from the SEM through the competent cantonal office of the Canton of Ticino. As an Italian citizen, you are a community citizen and can work in Switzerland, but the G Permit remains mandatory to formally document your status as a border worker. Documents typically requested: - Valid passport or national identity card - Signed employment contract from the Swiss employer - Certificate of residence issued by the municipality of Lonate Ceppino - Italian tax documentation (eventually requested) The G Permit has a validity period of generally 1 to 5 years, renewable. It is managed by the cantonal authorities of Ticino in coordination with the SEM. ### Declaration of income: deadlines and procedure Every year, by June 30 (if you complete the model 730), you must report to the Italian Revenue Agency: 1. Net income from Switzerland declared (as reported in the employer's certificate - Lohnausweis / feuille de salaire) 2. Swiss withholding tax paid (detailed in the same certificate) 3. Family situation and deductions (spouse, dependent children, health expenses, etc.) In the model 730, fill in the CE section (Credits for foreign taxes), where you record the Swiss tax paid. The Italian Revenue Agency compares the Italian theoretical IRPEF (applied to the net income, excluding the €7,500 or €10,000 exemption) with the Swiss tax already paid. If the Swiss tax is higher than the Italian IRPEF, the result is a credit that becomes a refund: the excess amount is credited to your bank account between September and November of the following year. If it is lower, the difference must be paid to the Italian Treasury. Thanks to the exemptions of the New Agreement, many border workers obtain significant refunds, especially in the first years. ### Critical deadlines and fiscal calendar January-February: You receive the annual fiscal certificate from your Swiss employer. March-June: Complete the model 730 at a CAF (Center for Fiscal Assistance) or a professional tax consultant specializing in border workers. Provide the Swiss certificate, Italian residence certificate, and any documents related to personal deductions. June 30: Deadline for submitting the model 730 online. September-November: Publication of results. If refund, the credit is credited to your bank account. If balance (amount due), you receive a payment notice. A practical tip: in your first year as a border worker, consult a tax consultant specializing in border workers. The initial investment (100-200 EUR) will save you from errors that could cost significantly in subsequent corrections. ### First year: managing your pay slip and budget In your first year of work in Ticino, expect: - Withholding tax on your monthly pay slip (around 10-20%, depending on income and family situation) - Simultaneous payment of AVS, AI, AD/AC, LAINF, LPP contributions (total 25-30% of gross income) - Significantly reduced net monthly income compared to the gross income declared in the contract - By September of the following year, Italian declaration and potential refund (or balance) Many border workers are surprised by the difference between gross and net income. It is normal: the Swiss system is one of the most developed in Europe, and contributions reflect this solidity. The advantage is the certainty of the pension entitlement: unlike the INPS, which registers

Frequently Asked Questions

What is the difference between old frontier workers and new frontier workers in the New Frontier Agreement?: Those who were border workers before 17 July 2023 benefit from an exemption of €7,500 per year from Italian taxable income, with a transitional regime guaranteed until 2033. The new frontier workers (from 17 July 2023 onwards) have a deductible of €10,000 per year. Both benefit from the New Frontier Agreement in force since 1 January 2024, ratified by Italy with Law no. 83 of 13 June 2023. This is the main novelty compared to the 1976 Convention.
How does the Italian tax credit work for Swiss tax paid at source?: Income tax at source is only withheld in Switzerland by the employer. In Italy, fill in form 730 with the EC framework and communicate the Swiss tax to the Revenue Agency. Italy recognizes a credit up to IRPEF that you would have had to pay if the income had been Italian, avoiding double taxation. If the Swiss tax exceeds this IRPEF (reduced by the exemption), the difference becomes a refund (credit to account).
What are the Swiss contribution rates paid by border employees?: AVS/AI/IPG: 5.3% of gross salary; AD/AC: 1.1% (up to CHF 148,200); LAINF: 0.7-1.5%; LPP: 7–18% according to age (from 25 years). Total: 25-30% of gross. These contributions finance social security, unemployment, accidents and the Swiss pension fund, which are much more structured than the Italian INPS. The frontier worker obtains full rights to the AVS without contribution gaps.
What is G Leave and how do I request it?: Permit G is the border working document issued by the SEM (Swiss State Secretariat for Migration) at the request of the Swiss employer. It is mandatory for all border workers, including those from the EU, and is valid for 1-5 years (renewable). You need a passport/identity card, a signed employment contract, a certificate of residence from the Italian municipality. The Ticino cantonal offices coordinate the procedure.
Do border guards in category G have to be insured at the Swiss LAMal?: No. Border workers in category G have the right of option: they can choose to insure themselves at a Swiss sickness fund (LAMal, with adult deductibles from CHF 300 to CHF 2,500) or maintain Italian coverage through INPS. It is a personal decision that affects the monthly budget and the quality of health coverage. Consult an insurance broker before deciding.