How is income taxed for a border worker residing in Besano?

Income tax at source is only withheld in Switzerland. Italy avoids double taxation by applying the tax credit through the EC framework of model 730, in compliance with the provisions established by the Convention against Double Taxation signed on 9 December 1976.

What are the mandatory social contributions withheld in Switzerland?

Mandatory withholdings on the Swiss paycheck include AVS/AI/IPG contributions at 5.3% for the employee, AD/AC unemployment insurance at 1.1% up to a maximum of CHF 148,200, LAINF accident insurance between 0.7% and 1.5% and payments to the second LPP pillar between 7% and 18% based on age from 25 years.

Living in Besano as a border worker: a guide for pros and cons (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 30 July 2026

Practical analysis on travel times, taxation with the new agreement, advantages and disadvantages of choosing Besano for those who work in Ticino.

Context

In brief

Strategic location close to the border crossings with Canton Ticino.
New Cross-border Workers Agreement in force since January 1, 2024.
Withholding tax applied exclusively in Switzerland.
Tax credit to avoid double taxation in Italy.

Key facts

What: Relocation and residency in the municipality of Besano for cross-border workers.
When: Under the regime of the New Cross-border Workers Agreement in force since January 1, 2024.
Where: Besano, in the province of Varese, close to the Swiss border.
Who: Employees working in Canton Ticino.
Amount: Tax exemption threshold for new cross-border workers set at 10,000 euros.

…

Operational details

Tax and social security aspects for residents of Besano

The regulatory framework of reference for those who reside in Besano and work in Switzerland is governed by the New Frontier Agreement, signed on 23 December 2020 and entered into force on 1 January 2024, with Italian ratification taking place through Law 83 of 13 June 2023. With regard to the taxation of income from work, the tax at source is withheld exclusively in Switzerland, while Italy eliminates double taxation through the tax credit mechanism included in the EC framework of model 730. For old border workers, i.e. those who worked in Switzerland before 17 July 2023, there is a transitional regime valid from 2024 to 2033 with an exemption of 7,500 euros. For new frontier workers, on the other hand, the expected deductible amounts to 10,000 euros. With regard to Swiss social security contributions, the mandatory deductions include the AVS/AI/IPG at 5.3% borne by the employee, the AD/AC unemployment insurance at 1.1% up to the maximum of 148,200 Swiss francs, the LAINF accident coverage between 0.7% and 1.5%, and the LPP contributions for the second pillar that vary from 7% to 18% based on the age group from 25 years. Tax rates and taxes at source are established by federal and cantonal laws and administered by the Federal Administration of AFC/ESTV Contributions at the federal level and by the administrations

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Practical assessment and operational steps for the transfer

Dealing with the relocation to Besano requires a detailed planning of the administrative and bureaucratic procedures necessary to regularize your position as a cross-border worker. It is essential to verify the correct management of your tax residence in Italy and compliance with the provisions of the Revenue Agency and the Ministry of Economy and Finance MEF, taking into account the indications provided by entities such as INPS and the Secretariat of State for Migration SEM. Before proceeding with the change of residence, it is necessary to analyze the incidence of the local cost of living with respect to the salaries received in Swiss francs, assessing the trend of the currency exchange and the impact of the Italian personal income tax rates, which provide for brackets of 23% up to 28,000 euros, 35% between 28,001 and 50,000 euros and 43% for incomes above 50,000 euros. Those who move to Besano must also consider the logistics for the daily journey to work in Canton Ticino, checking the transit times at customs crossings and the sustainable or private mobility options available. For accurate financial planning and to assess the impact of tax and social security withholdings on the Swiss payroll, it is useful to use dedicated tools such as the calcolatore stipendio netto to optimize the management of your economic resources.

Frequently Asked Questions

How is income taxed for a border worker residing in Besano?: Income tax at source is only withheld in Switzerland. Italy avoids double taxation by applying the tax credit through the EC framework of model 730, in compliance with the provisions established by the Convention against Double Taxation signed on 9 December 1976.
What is the difference between old and new frontier workers for the tax exemption?: Old frontier workers, i.e. those who were already such before 17 July 2023, benefit from a transitional regime valid from 2024 to 2033 with an exemption of 7,500 euros. The new frontier workers, hired later, enjoy a deductible of 10,000 euros.
What are the mandatory social contributions withheld in Switzerland?: Mandatory withholdings on the Swiss paycheck include AVS/AI/IPG contributions at 5.3% for the employee, AD/AC unemployment insurance at 1.1% up to a maximum of CHF 148,200, LAINF accident insurance between 0.7% and 1.5% and payments to the second LPP pillar between 7% and 18% based on age from 25 years.