When did the New Frontier Agreement come into force?

The New Frontier Agreement was signed on 23 December 2020. Italy ratified it with Law 83 of 13 June 2023 and the agreement entered into force on 1 January 2024. The date of 17 July 2023, on the other hand, serves to distinguish old frontier workers, already such before that day, from new frontier workers for the purposes of deductibles.

Which deductible applies to a border crossing?

Those who were already border workers before 17 July 2023 fall under the old border worker regime, with an exemption of 7,500 euros and a transitional regime valid from 2024 to 2033. The new frontier workers have a deductible of 10,000 euros. The verification of the personal date comes before the calculation, because the two regimes do not have the same threshold.

Where is earned income tax withheld?

For frontier workers, income tax is only withheld in Switzerland. Italy avoids double taxation by means of the tax credit indicated in the EC framework of 730. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976. Therefore, a second automatic taxation on the same income should not be calculated.

What does LAMal provide for those who have a G permit?

The border worker with G permit has the right of option for LAMal health insurance. For adults the deductibles indicated range from CHF 300 to CHF 2,500. The deductible must be distinguished from social security deductions, including AVS/AI/IPG, AD/AC and LPP, because it belongs to health coverage.

What IRPEF rates are indicated from 2026?

The source indicates 23% up to 28,000 euros, 33% from 28,001 to 50,000 euros and 43% over 50,000 euros, according to Law 199/2025, Article 1, paragraph 3. For income 2024-2025, the rates 23%, 35% and 43% are indicated. These values should be read together with the Swiss source taxation and the tax credit.

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

Di Marco Ferrari · Published on 26 September 2026

Morning road in Ticino for someone living in Merone and working across the border

Living in Merone and working in Ticino: what changes regarding withholding tax, deductibles of 7.500 and 10.000 euro, AVS, LPP and LAMal.

Context

In brief

Agreement signed on 23 dicembre 2020, in force from 1° gennaio 2024
Old cross-border commuters: exemption of 7.500 euros until 2033
New cross-border commuters: allowance of 10.000 euros
Employment tax withheld only in Switzerland

Key facts

Cross-border commuters agreement → signed on 23 dicembre 2020; in force from 1° gennaio 2024
Italian ratification → Law 83 of 13 giugno 2023
Old cross-border commuters → exemption of 7.500 euros, transitional regime 2024–2033
New cross-border commuters → allowance of 10.000 euros
Employment income → withholding tax only in Switzerland

The New Cross-Border Commuters Agreement between Italy and Switzerland was signed on 23 dicembre 2020. Italy ratified it with Law 83 of 13 giugno 2023, and the text entered into force on 1° gennaio 2024. For those who live in Merone and work in Canton Ticino as cross-border commuters, these dates define the framework to be checked before considering a move.

The dates that separate the two regimes

The stated dividing date is 17 luglio 2023. Anyone who was already a cross-border commuter before that date falls into the category of old cross-border commuters: they benefit from the exemption of 7.500 euros and the transitional regime from 2024 to 2033. New cross-border commuters, on the other hand, have an allowance of 10.000 euros. The first check therefore concerns one’s status on the established date, not only the place of residence or the commute to work.

Regarding employment income, the stated rule is clear: for cross-border commuters, withholding tax is withheld only in Switzerland. Italy avoids double taxation through the tax credit reported in section CE of form 730. This concerns the tax return and can be explored in greater detail in dichiarazione dei redditi, without turning the credit into a second taxation of the same income.

The Italy–Switzerland Convention for the avoidance of double taxation was signed on 9 marzo 1976. Switzerland is not a member of the EU or the EEA: this reference should be kept distinct from the agreement that entered into force in 2024.

Swiss tax rates, including federal and cantonal rates, are established by federal and cantonal laws. At federal level, administration falls under AFC/ESTV, while the cantonal tax administrations are also involved. For the reader from Merone, the review therefore begins with classifying the regime and reading the Swiss payslip together with the Italian tax section.

Operational details

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Key points

Before deciding whether to move from Merone and work in Ticino, it is worth turning the rules into a personal worksheet. The aim is not to estimate a generic amount, but to arrive at an orderly review of tax regime, payslip, healthcare and tax return.

Five practical steps

1. Set the reference date. Write down whether you were already a cross-border worker before 17 luglio 2023. This information determines the group to compare: old cross-border workers with an exemption of 7.500 euro and transitional period 2024-2033, or new cross-border workers with an allowance of 10.000 euro.

2. Note the main tax rule. The cross-border worker's employment income is subject to withholding tax only in Switzerland. In the file, keep the reference to the tax credit in the CE section of the 730, which serves to avoid double taxation in Italy. For the tax-return section, use the dichiarazione dei redditi as a checkpoint.

3. Read the payslip by blocks. Identify 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 bracket starting from the 25esimo year. The method prevents confusing contributions, insurance and withholding tax.

4. Check the healthcare position. With the G permit, there is an option right for LAMal. Note the reference adult deductible, ranging between CHF 300 and CHF 2'500, and keep it separate from social-security deductions. The choice must remain consistent with the personal circumstances you are assessing.

5. Complete the real-world comparison. Add the cost of living and the daily commute you will undertake from Merone. If a border crossing such as Brogeda appears among the alternatives, record the actual route and related expenses, without replacing them with an abstract estimate. Then note the IRPEF rates indicated for 2026 and for 2024-2025 income, keeping the Swiss withholding-tax rule distinct.

This sequence makes it possible to arrive at a documented choice without confusing the new agreement with taxation in both countries. To obtain an estimate of the monthly net amount based on the entries provided, use the calcolatore dello stipendio.

Frequently Asked Questions

When did the New Frontier Agreement come into force?: The New Frontier Agreement was signed on 23 December 2020. Italy ratified it with Law 83 of 13 June 2023 and the agreement entered into force on 1 January 2024. The date of 17 July 2023, on the other hand, serves to distinguish old frontier workers, already such before that day, from new frontier workers for the purposes of deductibles.
Which deductible applies to a border crossing?: Those who were already border workers before 17 July 2023 fall under the old border worker regime, with an exemption of 7,500 euros and a transitional regime valid from 2024 to 2033. The new frontier workers have a deductible of 10,000 euros. The verification of the personal date comes before the calculation, because the two regimes do not have the same threshold.
Where is earned income tax withheld?: For frontier workers, income tax is only withheld in Switzerland. Italy avoids double taxation by means of the tax credit indicated in the EC framework of 730. The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976. Therefore, a second automatic taxation on the same income should not be calculated.
What does LAMal provide for those who have a G permit?: The border worker with G permit has the right of option for LAMal health insurance. For adults the deductibles indicated range from CHF 300 to CHF 2,500. The deductible must be distinguished from social security deductions, including AVS/AI/IPG, AD/AC and LPP, because it belongs to health coverage.
What IRPEF rates are indicated from 2026?: The source indicates 23% up to 28,000 euros, 33% from 28,001 to 50,000 euros and 43% over 50,000 euros, according to Law 199/2025, Article 1, paragraph 3. For income 2024-2025, the rates 23%, 35% and 43% are indicated. These values should be read together with the Swiss source taxation and the tax credit.