Living in Merone and working in Ticino as a cross-border commuter

Context

TL;DR

• Agreement signed on December 23, 2020, applied from January 1, 2024
• Old border crossers remain taxed only in Switzerland ([Article 9 of the 2020 Agreement] (https://www.fedlex.admin.ch/eli/cc/2023/410/it)).
• For the purposes of Article 9 of the Agreement, “old border crossers” are those who complied with the tax requirements and who worked in Graubünden, Ticino or Valais on 17 July 2023 or in the period from 31 December 2018 to 17 July 2023. For income from work covered by Article 9, taxation remains exclusively at source in Switzerland; for other workers the ordinary regime applies, with taxation in Italy, credit for Swiss tax and Swiss withholding tax at 80% of the ordinary rates. The 10,000 euros of Article 4 of L. 83/2023 are only the income limit referred to in Article 1, paragraph 175, of L. 147/2013 and not a general deductible for new border crossers. Sources: [AFC sheet] (https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf) · [Agreement, Art. 9] (https://www.fedlex.admin.ch/eli/cc/2023/410/it) * L. 83/2023, art. 4.
• Labour tax withheld in Switzerland

Key facts

• Border agreement → signed on 23 December 2020; applied from 1 January 2024
• Italian ratification → Law 83 of 13 June 2023
• Old cross-border commuters remain taxed only in Switzerland (art. 9 of the 2020 Agreement).
• The threshold of 10,000 euros is not a general exemption: art. 4 of Law 83/2023 limits it to the income referred to in the art. 1, paragraph 175, of Law 147/2013.
• Income from work → withholding tax in Switzerland

On 23 December 2020, the New Cross-Border Agreement between Italy and Switzerland was signed. Italy ratified it with Law 83 of 13 June 2023 and the text entered into force on 1 January 2024. For those who live in Merone and work in the Canton of Ticino as cross-border workers, these dates define the framework to be verified before evaluating a transfer.

The dates that separate the two regimes

The threshold indicated is 17 July 2023. The threshold of 10,000 euros is not a general exemption: art. 4 of Law 83/2023 limits it to the income referred to in the art. 1, paragraph 175, of Law 147/2013. The first check therefore concerns one's position on the established date, not just the place of residence or the route to work.

On income from work the rule indicated is clear: for cross-border workers the withholding tax is withheld in Switzerland. Italy avoids double taxation through the tax credit reported in the EC framework of 730. The step concerns the tax return and can be explored in detail in the tax return, without transforming the credit into a second taxation of the same income.

The Italy-Switzerland Convention against double taxation was signed on 9 March 1976. Switzerland is not a member of the EU or the EEA: this reference must be distinguished from the agreement which entered into force in 2024.

Swiss tax rates, including federal and cantonal ones, are established by federal and cantonal laws. At the federal level, the administration is the responsibility of the AFC/ESTV, while the cantonal tax administrations also intervene. For Merone's reader, the verification therefore starts from the classification of the regime and from the reading of the Swiss pay slip together with the Italian tax framework.

Operational details

The Swiss gross is not enough to estimate the economic result of a transfer to Merone. For a cross-border worker, the comparison must start from the pay slip: social contributions, accident insurance, professional pensions and health coverage affect the available amount, while the tax rules determine how to read the income in the Italy-Switzerland relationship.

The items to be read in the pay slip

The employee share for AVS/AI/IPG is 5.3%. For AD/AC the withholding is 1.1%, with a ceiling of CHF 148'200. LAINF affects between 0.7% and 1.5%; the LPP is between 7% and 18% depending on the age group, starting from 25 years. They are different percentages: the reading must keep the individual items separate instead of looking for a single valid value for each pay slip.

For those considering living in Merone and working in the Canton of Ticino, the comparison between salary and cost of living must therefore use the actual net amount and not just the gross amount. A cross-border worker comparing two offers, or considering a transfer, should separate disposable income from social security and insurance components before estimating the margin for housing, transport and daily expenses. The cost of living comparison helps organize this verification, but does not replace the tax classification.

KVG, deductible and IRPEF calendar

The cross-border worker with a G permit has the right to opt for KVG health insurance. For adults, the indicated deductibles range from CHF 300 to CHF 2,500. The cost of insurance and the deductible must therefore be kept separate in the spending plan: they are healthcare elements, not AVS deductions or withholding tax. The LAMal insurance verification must be accompanied by the reading of the pay slip.

On the Italian side, the source indicates for IRPEF from 2026 23% up to 28,000 euros, 33% from 28,001 to 50,000 euros and 43% over 50,000 euros, based on Law 199/2025, article 1, paragraph 3. For 2024-2025 incomes the rates are indicated 23%, 35% and 43%. These brackets must be read together with the withholding tax rule in Switzerland and the tax credit of the EC framework: the comparison does not consist of automatically adding two taxes on the same income.

The practical picture is this: the cross-border worker must keep gross, Swiss withholdings, KVG coverage and Italian tax compliance separate. Only after this separation can the cost of the transfer be compared with the chosen daily route.

Key points

Before deciding whether to move from Merone and work in Ticino, it is best to transform the rules into a personal form. The objective is not to estimate a generic amount, but to arrive at an orderly verification of the scheme, pay slip, healthcare and declaration.

Five operational steps

1. Set the reference date. Write if you were already a cross-border worker before 17 July 2023. The threshold of 10,000 euros is not a general exemption: art. 4 of Law 83/2023 limits it to the income referred to in the art. 1, paragraph 175, of Law 147/2013.

2. Mark the main tax rule. The cross-border worker's income from work is subject to withholding tax in Switzerland. In the dossier it retains the reference to the tax credit of the EC framework of 730, which serves to avoid double taxation in Italy. For the declarative part use tax return as a control point.

3. Read your pay slip in blocks. It identifies AVS/AI/IPG at 5.3%, AD/AC at 1.1% with a cap of CHF 148'200, LAINF between 0.7% and 1.5% and LPP between 7% and 18% according to the age group from the age of 25. The method avoids confusing contributions, insurance and withholding tax.

4. Check the health position. With the G permit there is the right of option for KVG. Write down the reference adult deductible, between CHF 300 and CHF 2,500, and keep it separate from social security deductions. The choice must remain consistent with the personal framework you are evaluating.

5. Complete the real-world comparison. Add the cost of living and the daily journey you will incur from Merone. If a pass like Brogeda appears among the alternatives, record the actual journey and related expenses, without replacing them with an abstract estimate. Then note down the IRPEF rates indicated for 2026 and for 2024-2025 income, keeping the Swiss withholding tax rule separate.

This sequence allows you to arrive at a documented choice without confusing the new agreement with taxation in either country. To obtain an estimate of the monthly net from the entries entered, use salary calculator.